Chart 11
Percent
16
14
12
10
8
6
4
2
THE ECONOMY
Earnings and wages
(year-on-year rate of change in money terms)
Earnings
Wages
0
QI
Q3
Q1 Q3
1993
1994
Q1 Q3 1995
QI
Q3
1996
Q1 Q3 1997
Q1
Q3
1998
Labour earnings and wages were on a moderating trend during the course of 1998.
54
Towards the end of the year, trading activity increased, along with a visible rebound in apartment prices from the trough in October.
Embracing sharper dips in January, February and June, apartment prices on average plummeted cumulatively by 44 per cent between January and October 1998. Then there was a 15 per cent rebound during November and December, yet prices at end-1998 were on average still down by 36 per cent from a year earlier, and by 44 per cent when compared with the peak in October 1997. The rental market was weak throughout the year. At end-1998, flat rentals for new leases were on average 27 per cent lower than a year earlier.
On commercial property, the sales market for office space was severely hit by tight bank lending and a high real interest rate and hence much reduced acquisition interest. The rental market for office space was likewise dampened, by continued rationalisation and downsizing in the corporate sector as well as an uncertain business outlook. The higher vacancy rate amid an ample available and forthcoming supply aggravated the situation. Against this backdrop, prices for office space declined significantly, on average by 45 per cent during 1998. Rentals for office space also fell sharply, on average by 34 per cent during the year.
The market for shopping space similarly faltered, upon the heavy setback in retail business. As the vacancy rate rose amid a sluggish demand, prices for shopping space on average declined by 47 per cent during 1998. Rentals for shopping space also fell, albeit to a lesser extent, on average by 15 per cent during the year.
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