64
Chart 15
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THE ECONOMY
Sale and purchase agreements by broad type of property
Number ('000)
Residential property Non-residential property
Price Movement
QI Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1998
1999
2000
2001
2002
2003
Overall transactions went up slightly in number in 2003, as a decrease in transactions of residential property was more than offset by a concurrent increase in transactions of non-residential property.
Overall consumer prices, whilst still coming down for the fifth consecutive year since late 1998, had a smaller decrease in 2003 than in 2002. The moderation in the price decline took place in the first and fourth quarters of 2003, outweighing the accentuated falls in the second and third quarters, which were mainly brought about, first, by the severe impact of SARS on consumer demand, and, then, by the special relief measures granted by the Government to alleviate the SARS impact. The moderation was more appreciable towards the year-end, when both property rentals and labour wages tended to stabilise amidst the generally improved economic conditions. Also, in face of the surge in inbound tourism and revival in local consumer spending, some of the local retailers and service providers reduced the price discounts and other concessions on their goods and services, and some others even raised the prices modestly. A rebound in the prices of retained imports over the past year, amidst a weaker US dollar and an uptrend in world commodity prices, should have contributed as well.
For 2003 as a whole, the Composite CPI went down by 2.6 per cent, smaller than the 3.0 per cent decline in 2002. The year-on-year decrease actually narrowed to 2.0 per cent in the first quarter of 2003, from 2.9 per cent in the fourth quarter of 2002, although this was largely attributable to a low base of comparison owing to the rates concession by the Government in 2002. The decrease then widened to 2.5 per cent in the second quarter under the impact of SARS, and further to 3.6 per cent in the third quarter on account of the new rates concession as well as the waiver of water and sewage charges granted as relief measures by the Government. The decrease narrowed again, to 2.3 per cent in the fourth quarter, upon firming up in retail prices of some of the goods and services, and lapse of the special relief measures.