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Wednesday, February 28, 1973
RENT INCREASES EXPECTED TO SLOW DOWN
Rent increases in both domestic and industrial premises should slow
down this year as a result of a more rapid supply of new accommodation becoming
available, the Financial Secretary, the Hon. C.P. Haddon-Cave, predicted in his
Budget speech today.
This, he said, could be seen in the case of industrial rents where
the average increase in 1972 was less than 32 per cent due to a good supply
of additional floor space becoming available during the year.
While there had been no easing of rent levels last year in the case
of private domestic accommodation, Mr. Haddon-Cave strongly believed that the
level of rents in this sector "should at least stabilise" in the course of this
year.
The prospect for 1973, he said, was for 30,000 domestic units to be
completed, as compared with 20,000 last year and 12,000 in 1971,
Conceding that rents had not been anything like as stable as other
prices, Mr. Haddon-Cave said this had resulted from a shortage of accommodation
in relation to demand.
In this respect, he added, Hong Kong was still suffering from the
slowing down of construction activity in the late Sixties which stemmed from
the events of 1965-67.
He stressed, however: "From now on, new accommodation will be coming
onto the market at a more rapid rate and this should lead to a slowing down
of rent increases. 村
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