residential
increased.
flats and
other building premises also
Improved economic conditions and the successive
(6)
SO far this year have
reductions in the mortgage rate
Prices and
helped to boost interest in acquiring property. rentals of residential property have generally firmed up,
with the exception of large flats where the earlier increase
in prices appeared to have levelled off.
5.7
(7)
,
the supply of
As regards commercial property new shops and offices in the third quarter of 1986, at 40 000
square metres in terms of
of usable floor area completed, was
58% lower than in the same quarter last year. Taking the
first nine months together, the supply of new commercial property fell by 16%. In the third quarter, the take-up of shops in well-planned developments in good
locations
/continued
(6) Relationship between mortgage rate and monthly payment:
Mortgage rate (%) charged by principal banks in Hong Kong
Monthly payment* ($) on $100,000 mortgage loan with mortgage period of
10 years 20 years
7 years
24 Dec 1984
12.5
1,792
1,464
1,136
14 Jan 1985
12.0
1,765
1,435
1,101
28 Jan 1985
11.5
1,739
1,405
1,066
1 Apr 1985
11.0
1,712
1,378
1,032
22 Apr 1985
10.5
1,686
1,349
998
6 May 1985
10.0
1,660
1,322
965
20 May 1985
9.5
1,634
1,294
932
24 Jun 1985
9.0
1,609
1,267
*900
15 Jul 1985
8.0
1,559
1,213
836
2 Sep 1985
8.25
1,571
1,227
852
1 Apr 1986
9.25
1,622
1,280
916
12 May 1986
8.75
1,596
1,253
884
16 Aug 1986
7.75
1,546
1,200
821
A
Note: (*) These figures are based on equal monthly repayments.
number of financial institutions are offering mortgage loans for up to 20 years on this basis.
(7) Commercial property is defined to include offices, shops and miscellaneous commercial premises such as upper floor restaurants.
45