Citizens Party criticises the Government's housing policies as too hasty. Persistent high interest rates, causing further reductions in liquidity are hurting small businesses and property owners. Due to the worsening credit squeeze and rise in funding costs, developers are off-loading their properties at low prices, further depressing the property market. Since government policy is to require the premium to be paid up front before development begins, larger developers postpone projects in times of low demand to increase returns, whilst smaller developers cannot afford the up front capital outlay. Currently the Government's figures on property prices are released only after 3 months.
Accurate information helps to stabilise the market.