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CONFIDENTIAL **

10.

of industrial accommodation and of shops increased

by 47% and 3% respectively, but those of offices

decreased by 72%. The sharp decline recorded in

the case of offices was a reflection of the very

high level of completions during the 12 months ending March 1986. For residential property, the

number of units increased by 7%.

20.

(a) Building consents

An

After two years of substantial increase,

the total usable floor area of private sector

industrial property for which consent to commence

work was given in the first quarter of 1987

decreased by 33% over the same period in 1986.

increase of 12% was registered in respect of private sector commercial property. As regards private sector residential property, building

consents decreased in the first quarter of 1987 by

3% in terms of floor area, and by 1% in terms of

the number of units.

21.

As the quarterly figures on building

consents are subject to considerable short-term

variations due to the size of building projects and

differences in the timing of their construction, it

is useful to look at the cumulative position over

four quarters. For the 12 months ending March

1987, building consents in respect of both private

sector industrial and commercial property showed

increases of 2% and 143% respectively over the

previous twelve months. As regards private sector

residential property, building consents increased

by 6% in terms of floor area, but decreased by 7%

in terms of the number of units. This suggests

CONFIDENTIAL # 3

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