G.F. 326
CONFIDENTIAL # Z
7
Investment in property
(all growth rates quoted in this section are on a year-on-year basis and are expressed in real terms,
unless otherwise indicated)
10.
(a) General situation
By the
Trading in property began to revive towards the end of July, as the market weathered the
immediate impact of the June events in China.
end of September, prices and rentals for most types of property had managed to return to levels not much
below those before June. The two downward
adjustments in mortgage rate, on 10 July and 7 August
respectively, also lent support to the recovery.
11.
The residential property market staged a
steady recovery in August and September. Support had re-emerged from end-users of small to medium-sized
flats. By the end of September, prices for pre-completion units of these sizes were only 5-10% lower than the pre-June levels. The market for luxury flats also showed some recovery, mostly in new
developments.
12.
As regards commercial property, the demand
for shop space in the third quarter continued to be
affected by the slow-down in local consumer spending
and in the tourist trade. The leasing market for
office space was least affected by the June events in
China, as continued growth in the service sectors
provided support. Office rentals in the prime business districts generally held firm, although
those in secondary locations registered some decline due to an increased supply of space.
CONFIDENTIAL #3