CONFIDENTIAL #
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export performance.
The demand for offices
remained strong, given the rapid expansion in the trading and services sectors, particularly in respect of business with China. The demand for
shop space was sustained by increases in local consumer spending and in tourist expenditure. As regards residential property, demand was maintained at a high level, although buyers were apparently becoming more cautious and selective at the
prevailing prices.
12.
Caution should be exercised in
interpreting figures on investment in property because of the time taken to complete projects. Capital expenditure is measured at the time the
construction work is undertaken, while consents to
commence work are given before the work starts and
thus before any expenditure has actually been incurred, and completions are recorded after all
work is finished. For most projects, the highest level of expenditure is likely to occur in a year between that in which consent is given and that in which the project is completed.
(b) Capital expenditure on building and
construction
13.
According to the latest quarterly GDP
estimates, capital expenditure on building and construction in the private sector grew by 5% in real terms in the second quarter of 1987, following increases of 15% in the first quarter and of only
2% for 1986 as a whole (Table 1). During the
course of 1987, a number of major building projects
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