The escalating house prices in Hong Kong have led Hong Kong's Chief Executive Donald Tsangto say that the Government’s irresolute decision of 2003 has caused the prices of the housing to surge. He has criticized the government for over reacting at the outset of inflation.

Following the 2003 turmoil, the Government took hasty decision of abandoning the schemes of selling off houses to lower income group families. This proved dreadful for the country as the flow of money within the country was restricted.

It has been reported that in the past two years the housing prices have increased by 60%. Following the surge in the prices, Tsang is planning to resume Home Ownership Scheme (HOS) with hope that housing prices would be controlled.

On Wednesday, Tsang will be holding a press conference in which it is expected that he will be unveiling the plans of constructing 5,000 subsidized homes. These homes will be built for the middle and lower class families. Moreover, the flats will be sold to the lower income group families at a price of 30% lower than the present market price of the houses. It is hoped that through this step, the lower income group families will be provided with an affordable houses.