MONDAY, MARCH 24, 1975
VACANT OFFICE SPACE EXCEEDS ONE MILLION SQ. FT.
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A RECORD 1.1 MILLION SQUARE FEET OF OFFICE ACCOMMODATION WAS LYING VAGANT AT THE END OF 1974, THE COMMISSIONER OF RATING AND VALUATION, MR. RAYMOND FRY, DISCLOSED TODAY.
THIS IS MORE THAN DOUBLE THE 0.54 MILLION SQUARE FEET OF VACANT OFFICE SPACE AT THE END OF 1973, AND IS NEARLY TEN TIMES THE AMOUNT VACANT AT THE END OF 1972 WHEN ONLY SOME 125,000 SQUARE FEET LAY UNOCCUPIED.
MOST VACANCIES LAST YEAR OCCURRED IN THE LESS ATTRACTIVE BUILDINGS IN THE CENTRAL AND SHEUNG WAN DISTRICTS OF HONG KONG ISLAND AND IN THE TSIM SHA TSUI AND YAU MA TEI DISTRICTS IN KOWLOON, HE SAID.
THE COMMISSIONER SAID 1974 HAD BEEN A VERY ACTIVE YEAR FOR DEVELOPERS IN THIS PARTICULAR FIELD AND THE AMOUNT COMPLETED DURING THE YEAR WAS JUST OVER ONE MILLJON SQUARE FEET. MOST OF THIS WAS CONSTRUCTED IN THE PERIPHERAL AREAS OF CENTRAL DISTRICT AND IN SHEUNG WAN, TSIM SHA TSUI AND YAU MA TEI, HOWEVER, THE AMOUNT COMPLETED WAS LESS THAN THE RECORD OF 1.33 MILLION SQUARE FEET COMPLETED DURING 1973.
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COMMENTING ON FUTURE PROJECTS, MR. FRY SAID THAT IF ALL OFFICE BUILDINGS PLANNED FOR 1975 AND 1976 ARE COMPLETED, AN ADDITIONAL 3.2 MILLION SQUARE FEET WILL BE PROVIDED IN 1975 AND A FURTHER 3.8 MILLION SQUARE FEET IN 1976.
+HOWEVER, IN VIEW OF THE PRESENT ECONOMIC OUTLOOK, AND A LIKELY FALL-OFF IN DEMAND FOR OFFICE ACCOMMODATION, IT APPEARS PROBABLE THAT COMPLETION OF SOME PROJECTS WILL BE DEFERRED, AS THIS AMOUNT OF ACCOMMODATION, TAKEN TOGETHER WITH THE 1.1 MILLION SQUARE FEET VAGANT AT THE END OF 1974, IS CONSIDERABLY IN EXCESS OF THE AVERAGE AMOUNT TAKEN UP DURING THE LAST FIVE YEARS, HE ADDED.
OFFICE RENTALS CONTINUED ON AN UPWARD TREND OVER 1974 BUT, WITH MORE COMING ON TO THE MARKET, TENANTS NOW HAVE A WIDER CHOICE, AND THE VERY NOTICEABLE DOWNTURN IN THE SECOND HALF OF 1974 WILL UNDOUBTEDLY CONTINUE, HE SAID.
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