C.F. 326
-
13.
As regards industrial property, overall demand remained sluggish in the third quarter, with increased vacancy rates in some locations.
Given the uncertainty brought about by the Gulf
crisis, industrialists generally adopted a
cautious attitude towards investment in factory
premises. There was, however, a continued firm
demand for storage space.
14.
Caution
when
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
construction work is actually
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 of giving consent or that of completing the project.
(b) Capital expenditure on building and
construction
15.
According to the preliminary quarterly
estimates, overall expenditure on building and
construction grew by 5응
in the third quarter of 1990. Expenditure on building and construction by the public sector (including the Mass Transit Railway Corporation and Kowloon-Canton Railway Corporation) rose by 8%, while that by the private
sector rose by 4%.
Further growth can be
expected, as
projects are
a number of significant capital going to commence or gather momentum
in the near future.
CONFIDENTIAL #3