1

Table 6

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11

that some developers have shifted towards producing

larger flats. The demand for such flats continued

to be strong (Table 6).

21.

(e) Land disposal

A total of 6.6 hectares of land were

offered for sale at Government auctions and by

tender (including Letter A/B tenders) during the

first quarter of 1987. The sites offered generally

met with a favourable response, and land prices appeared to have remained firm in the first quarter of 1987. This suggests that developers remain generally optimistic about the outlook for the property market in 1987, and probably also in 1988.

Table 7

22.

The demand for sites in the Industrial

Estates at Tai Po and Yuen Long remained strong in

the first quarter of 1987. About 75% of the area in Tai Po Industrial Estate is now occupied. The

take-up of sites in the Yuen Long Industrial Estate

remained at a high level (Table 7).

Feedback from Industry Department

23.

Some qualitative information on investment

was obtained recently by the Industry Department

during regular factory visits and from general

contacts with industrialists. The information,

which is largely subjective, is summarised below :

(i) As business prospects for the rest of 1987

are expected to be good, the investment

boom in the manufacturing sector

experienced in 1986 has in general

G.F. 326

CONFIDENTIAL #

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