- 7 -
further controls limiting increases in most cases to a maximum of 10%
p.a. (Rents for premises built after December 1973 and for existing
buildings which become vacant remain freely negotiable) Even so, it has
been claimed that residential rents had already "topped-out" before the
freeze.
The above factors, together with the alleged tendency towards
industrial stagnation, the oil crisis and escalating building costs all
suggest a damper on the Colony's construction industry. But the Mass
Transit Scheme may help redress the balance. And a recent FEER article
argues, not unconvincingly, that population pressures, together with the
Colony's industrial and commercial growth potential will allow the
property men to look forward to a sellers' market.
The Oil Crisis
its own.
similar
Hong Kong has neither energy resources nor even a refinery of
It runs almost entirely on oil, retained imports of which in
1973 were HK$0.7 md. c.i.f. (about 3% of all retained imports):
purchases this year might cost around HK$2 md. c.i.f. for comparison, the
1973 trade deficit was HK$3 md.
The upward trend of quantities of petroleum products released
from bond has been rather erratic, though the 1971 slowdown mirrored that
in GDP (please refer back to page 1);
steadily:
electricity output rose more
Increases over Preceding Year:
1970
1971
1972
1973
Releases of Oil from Bond
12%
3%
17%
8%*
Electricity Production
12%
10%
11%
11%
*volume of oil released in 1973 was about 5 mn. tons.
But for the oil crisis, the Hong Kong authorities would have expected
another 11% rise in electricity.
In March, however, when they had proble
with Saudi Arabia, they told FCO they had managed to depress power-static