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8
13.
On commercial property, the demand for office space continued to be supported by steady
growth in the service sectors. Office rentals in the
prime business districts such as Central were
generally stable during the fourth quarter of 1989,
while those in secondary locations registered some decline due to an increased supply of office space. The demand for shopping space, on the other hand,
continued to be held back by the slow-down in local
consumer spending and in the tourist business.
14.
The market for industrial property showed
only limited improvement since June, mainly because
of the weak performance of manufacturing production
and domestic exports in the latter part of 1989. The
only exception was in warehousing and storage
premises, the demand for which remained firm in the fourth quarter, underpinned by the growth in entrepôt
trade.
15.
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
expenditure has actually been incurred, and completions are recorded after all work is finished.
For most projects, it is likely that the highest
level of expenditure falls in a year other than that
in which consent is given or that in which the
project is completed.
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