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number of Mortgage Companies prepared to lend at the present time and interest rates vary from 1% to 1.5% per month.
The demand for large areas of industrial land has fallen off now that the demand of the Cotton Mills has been satisfied and it is unlikely that many groups with sufficient capital will enter the market to purchase such large properties as that which was withdrawn from auction from Kowloon recently, unless there is a large concession by way of price reduction.
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There is however still a small demand for industrial sites in Kowloon of an area of about 20,000 to 30,000 sq. ft. though buyers are reluctant to pay high prices. Equally, land in the Repulse Bay area is in demand though sellers are not to be found, as the majority of owners are Chinese and prefer to live in this area.
On the basis of all that has been said above Government is challenged to reconcile its price and rent control deflationary measures with its own actions as a landowner. Government is also challenged to deny the charge that its land dealings have contributed and are still contributing to the current inflation in Hong Kong and the maintenance of high prices for residential flats and houses.
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