G.F. 326
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property market in the first quarter, reflecting the generally favourable economic conditions and
the low mortgage rate. The demand for industrial
property was boosted by the very good domestic
export performance. The rapid growth of external
trade in both goods and services, the expansion of
the tertiary services sectors and the increased
activities in Hong Kong in connection with business opportunities in China kept the demand for office space at a high level. Helped by favourable
economic performance and the consequent improvement in consumer purchasing power, the demand for shop
space also improved. The demand for residential property remained generally firm.
13.
Caution should be exercised in
interpreting figures on invesment in property because of the time taken to complete projects.
Capital expenditure is measured at the time the
work involved is undertaken, while consents to
commence work are measured before the work starts
and thus before any expenditure has actually
incurred, and completions are measured after all
work is finished. For many, probably most,
projects the highest level of expenditure is
recorded 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
14.
According to the latest revised estimates
from the quarterly GDP series, capital expenditure
on building and construction in the private sector
grew by 6% in real terms in the fourth quarter of
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