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THE property market is now being hyped up to the point where a good minority are goaded into panic over escalating prices. There is also a play on phantom sales and resales advertised at exaggerated prices.
What is required now is a law that clearly prohibits sub-sales until legal completion. Another way is to remove deferred payment altogether. A third is to bar developers from marketing before at least 33 per cent of the works are completed and increase the down payment to at least 20 per cent.
A further means is to control developers and property agents. This will remove the current hype in the market and soften a sub-prime crisis, which seems imminent.
In the current scenario, a meltdown can be softened only with regulatory measures. Capital gains tax is not an effective instrument, though it would have some minor impact.
K. Rajagopalan
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