IN CONFIDENCE

LAND PRICES IN HONG KONG

1.

Prices of three principle types of land in Hong Kong, ie

industrial, commercial and residential, reached all time high a

year ago. They have dropped since then, particularly those for

industrial land. Many reasons for this: supply has been increased,

demand dropped because of World recession, industrialists waiting

to see how world economy develops. No evidence that uncertainty

over 1997 is behind drop.

2.

Commercial land prices also dropped significantly because of

supply exceeding demand. But only small drop in residential land

prices where demand continues to be strong.

Hong Kong and General Department

24 March 1982

IN CONFIDENCE

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