G.F. 326

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- 9.

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stable in overall terms in the first quarter of 1990.

Prices and rentals for offices in prime locations such

as Central held steady, while those in secondary

locations declined somewhat. With an increased supply

of office space coming on stream, prices and rentals

are expected to soften in the near term. The take-up

of shop in well-planned developments in favoured

locations improved moderately during the first

quarter. But prices and rentals in the secondary

shopping areas and in arcades of a lower standard

continued to be dampened by the weak demand.

12.

With the exception of storage premises and

some high-quality industrial accommodation, demand for

most types of industrial property remained weak in the

first quarter of 1990. Price and rentals were

generally static, with declines for premises which are

older or in more remote locations.

13.

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

CONFIDENTIAL #3

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