of the year's supply of offices offered for sale rose from 24%

(6) in 1977 to 59% in 1981

Prices and rentals of offices

showed signs of easing in the first half of

of 1982, with the

exception of those in prime locations such as Central District

where the current supply of additional office accommodation is

limited and where demand continues to be strong.

5.11

(7) The additional supply of industrial property

in

terms of usable floor area completed, decreased by 6% in the

first half. Demand for industrial accommodation was affected

by the performance and prospects of the manufacturing sector. The decline in demand for industrial property appears to have resulted in private developers adjusting their existing building programmes (but see paragraph 5.12). The supply of

flatted factory space in 1982 is now forecast at just under

one million square metres as compared with the previous

forecast of 1.75 million square metres.

additional supply was concentrated

particularly in Kwai Chung, Tsuen Wan, Tuen Mun and Shatin where the basic infra-structural facilities are not yet fully comparable to those in the urban areas and also labour supply

is less abundant. Hence, these areas have the highest

percentage of vacant factories.

The bulk of the

in the New Territories,

/ 5.12 Planned

(6) See Property Review, 1982 produced by the Rating and Valuation

Department.

(7) Industrial

property is defined to include flatted factories, specialised factory buildings and storage premises.

40

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