The Government Intervention on Private Residential Property after Economic Turmoil - Essay Example

This paper declares that the economic turmoil in Asia, commonly known as the Asian economic crisis took over the continent in 1997, submerging most sectors in a type of economic upheaval whose repercussion sustained even years after the termination of the crucial phase. The four South-East Asian tigers were the most deeply affected in the region. Soon after the popularization of the concept of export-led growth, the region got engrossed in paving out strategies of attaining fast growth through this channel.

 This study highlights that the South East Asian tigers of Singapore, Taiwan, Hong Kong, and South Korea., soon started concentrating in building up a comparative advantage in the manufacture of electronic goods that led to the inflow of enormous amounts of foreign exchange into the region. The short term success that the region saw generated perceptions among the external economies about the investment potentials bestowed in the region. Quite naturally, this observation led to a rise in the inflow of resources into the economy in the form of foreign direct investment of which the real estate sector was one of the pioneer one.

The real estate sector especially bore its roots in the economy of Hong Kong, which had a relatively more relative trade environment than its neighbors, which is why it was almost like a haven for foreign real estate developers, despite the active participation of the domestic government in the sector.