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C.P. 326
9
13.
The firm demand for shop space was
sustained until early June. Some easing in
prices and rentals were observed since then, as demand softened following a setback in the tourist industry and a slow-down in loc al consumer spending.
14.
The demand for office space was
likewise dampened by the recent events in China, though probably to a lesser extent than the demand for shop space. Shortages in supply continued to exist in the main business districts despite the more moderate demand. Overall, the market for leasing of office space was less seriously affected than that for sales
and purchases.
15.
The market for industrial property
showed signs of consolidation during the first half of 1989, as the growth in manufacturing activity slowed down. The recent events in China, coupled with an abundant supply in the market, imply that the prices and rentals of industrial space are likely to remain soft in the coming months. Meanwhile, the demand for warehousing space was generally sustained.
16.
Caution should be exercised in interpreting the figures on investment in property, in view 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, i.e. before any significant
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