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FRIDAY, APRIL 19, 1974
WHILE HE FELT THAT THERE WOULD NOT BE ANY EASING OF THE PRESSURE ON OFFICE SPACE UNTIL NEXT YEAR, THE COMMISSIONER WAS NEVERTHELESS OPTIMISTIC THAT THE PROSPECTS FOR TENANTS IN 1975 AND 1976 +LOOK VERY GOOD INDEED+. HIS OPTIMISH WAS SUPPORTED BY THE FACT THAT COMPLETIONS IN THESE TWO YEARS WOULD TOTAL OVER SEVEN MILLION SQUARE FEET, WHICH FAR EXCEED THE RATE OF SUPPLY OF PREVIOUS YEARS.
SEVERACT
+50 THE LONG-TERM POSITION FOR TENANTS LOOKS FAIRLY
PROMISING, HE SAID.
AS FOR THE LOCATION OF OFFICE ACCOMMODATION, THOUGH HE FELT THAT THERE WERE CERTAIN TYPES OF BUSINESS WHICH MUST BE CENTRALLY LUCATED, HE BELIEVED THAT RE-LOCATION IN A PERIPHERAL AREA FOR SOME WOULD NOT ONLY BE ADVANTAGEOUS ON RENT BUT ALSO POSSIBLY BE JUST AS CONVENIENT AS REGARDS TRAVEL, WORKING CONDITIONS AND CUMMUNICATION.
TURNING TO FACTORY PREMISES, HE SAID THAT ALTHOUGH THERE WAS A LITTLE LESS SPACE THIS YEAR THAN LAST YEAR, DEMAND APPEARED TO SLACKEN OVER THE YEAR AND THERE NOW SEEMED AMPLE SPACE TO MEET THE REQUIREMENT OF NEW TENANTS,
WHILE THERE HAD BEEN SOME UPWARD MOVEMENT OF RENTS OVER THE YEAR, IT HAD BEEN VERY SLIGHT AND TOWARDS THE END OF THE YEAR THERE WERE DEFINITE SIGNS OF A DOWNTURN, THOUGH THIS HAPPENED IN SUCH AREAS AS CHAI WAN AND KWAI CHUNG.
+¡ WOULD EXPECT SOME FURTHER DRIFT DOWN IN RENTS THIS YEAR,+ MR. FRY PREDICTED, +BUT HOW FAR THIS GOES IS VERY MUCH DEPENDENT ON THE ECONOMY GENERALLY.
HE WAS CONFIDENT THAT UNLESS THERE WAS A CONSIDERABLE INCREASE IN DEMAND FOR FACTORY PREMISES THIS YEAR, THERE SHOULD BE PLENTY AVAILABLE FOR TENANTS, AND THE PROSPECTS FOR 1975 WERE SIMILAR.
AS REGARDS SHOP PREMISES, MR. FRY ENVISAGED THAT WITH THE COMPLETIONS IN 1974 AND 1975. IT WOULD MEAN AN EXCESS OF SUPPLY OVER DEMAND FOR A YEAR OR TWO.
DESPITE A CONTINUING UPWARD TREND IN SHOP RENTS FOR MOST OF 1973, HE NOTED THAT THERE WERE NOW SIGNS OF A SLOWING-DOWN OF THE TREND AND THAT SOME DOWNTURN COULD BE EXPECTED.
THE DEVELOPMENT OF SUPERMARKETS AND NEIGHBOURHOOD SHOPPING AREAS, MR. FRY OBSERVED, WAS BEGINNING TO HAVE SOME EFFECT ON RENTS IN THE OLD SHOPPING CENTRES, AS +PEOPLE REALISE THAT SHOPPING CAN BE BOTH EASIER AND CHEAPER 'OUT OF TOWN'+.
NOTE TO EDITORS:
COPIES OF THE FULL TEXT OF MR. FRY'S SPEECH ARE BOXED FOR COLLECTION.
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