1.7
In the property sector, the vacancy position for
most types of property was high in relation to the existing stock. While total completions in the first nine months of this year were more than in the corresponding period last year (paragraph 5.4), demand for property remained weak, with the exception of small domestic units
(paragraph 5.6). Prices and rentals of large domestic
units in general eased further (paragraph 6.6). Reflecting the weak building intentions of developers, the
total usable floor area on building plans with consent to
commence work was substantially lower in the first nine
months of 1983 than in the same period last year
(paragraph 5.8), even though building costs showed only a small increase (paragraph 5.11).
Inflation and the monetary aggregates
1.8
The rate of inflation remained relatively stable at about 9% in the third quarter of 1983. As indicated by
the Consumer Price Index (A), the year-on-year rate of
increase in consumer prices averaged about 9.1% in the
third quarter, compared with 9.4% for the first half of the year (paragraph 6.7). Up to the end of the third
quarter, the adverse effect on inflation due
inflation due to the sharp
depreciation of the Hong Kong dollar had been dampened by
other favourable factors. For example, aggregate demand in the economy was not imposing much pressure on aggregate supply and the general price level, the underlying growth
rate of the money supply was moderate (paragraph 3.3) and
the rate of inflation in Hong Kong's major trading
partners has slowed down. However, the sharp depreciation
of the Hong Kong dollar in the third quarter of this year
is likely to push up the rate of inflation in early 1984
when the increases in import prices gradually work through
to the retail level.
3
/ 1.9 Movements