The Heung Yee Kuk on Wednesday said the government should scrap housing market cooling measures, warning that a downturn in property prices is a threat to the stability of Hong Kong's economy.

The call came as rural leaders met Chief Executive John Lee at government headquarters to put forward 35 proposals ahead of his next policy address in October.

Speaking to reporters after the meeting, Kuk chairman Kenneth Lau said they asked Lee to review the market-cooling measures introduced more than a decade, such as duties on quick resale and people who own more than one home, to curb property speculation.

“Now it’s time to cut all these special stamp duties. It’s been there for over 10 years. As the interest rate hiked, property prices have been going down. That will affect the stability of Hong Kong's economy,” he said.

Lau also called for more attention to be paid to villages during planning for the Northern Metropolis development.

"In the recently launched San Tin Technopole development plan, it appears that urban and rural areas are still separate. They didn't take advantage of the opportunity to harness the potential of integrated development of urban and rural areas," he said.

The surrounding villages could be converted into “urban-villages” under public-private partnerships to foster tourism.

According to sources, two policy address sessions for the public will be held on August 20 and August 27 – the first at Shau Kei Wan Aldrich Bay Government Primary School and the second at Sha Tin Government Secondary School.