WEDNESDAY, APRIL 22, 1981
1981 PROPERTY REVIEW ON SALE
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THE 1981 PROPERTY REVIEW, PUBLISHED BY THE RATING AND VALUATION DEPARTMENT. IS NOW AVAILABLE FROM THE GOVERNMENT PUBLICATIONS CENTRE AT $50 A COPY.
COMMENTING ON THE REVIEW, THE COMMISSIONER OF RATING AND VALUATION, MR R.A. FRY, SAID THAT OVERALL THE MARKET IN 1980 HAD REMAINED BUOYANT WITH RENTS AND PURCHASE PRICES CONTINUING TO MOVE UPWARDS.
THE RETURN TO HIGH INTEREST RATES IN THE LATTER PART OF THE YEAR HOWEVER HAD EFFECTIVELY DAMPENED DEMAND FOR DOMESTIC PREMISES AND THE MARKET WOULD APPEAR TO BE ENTERING A PERIOD OF CONSOLIDATION.
COMPLETIONS OF AND CONSENTS TO COMMENCE NEW BUILDING WORKS AT 2.6 MILLION SQUARE METRES AND NEARLY 2.9 MILLION SQUARE METRES RESPECTIVELY WERE SLIGHTLY DOWN ON THE 1979 FIGURES BUT THIS IS SEEN AS NO MORE THAN PART OF THE CYCLICAL PATTERN OF THE PROPERTY DEVELOPMENT SECTOR.
DOMESTIC :
THE 1980 SUPPLY OF DOMESTIC ACCOMMODATION IN THE PRIVATE SECTOR AT 24 995 UNITS WAS SLIGHTLY LOWER THAN FORECAST. IF, HOWEVER, UNITS FOUND TO BE IN A COMPLETED STATE AT THE END OF THE YEAR AWAITING THE ISSUE OF AN OCCUPATION PERMIT ARE INCLUDED COMPLETIONS WERE FAIRLY CLOSE TO THE 1979 LEVEL. SOME 63 000 UNITS ARE FORECAST TO BE COMPLETED OVER THE TWO YEARS 1981 AND 1982.
FOR THE FIRST TIME EVER THE NUMBER OF DOMESTIC UNITS COMPLETED IN THE NEW TERRITORIES SURPASSED THAT FOR HONG KONG ISLAND. AS SUITABLE SITES ON THE ISLAND BECOME DEPLETED THIS TREND SEEMS LIKELY TO CONTINUE SINCE THE GREATER PROPORTION OF THE SUPPLY FORECAST FOR 1981 AND 1982, SOME 41 PER CENT IN BOTH YEARS, WILL BE IN THE NEW TERRITORIES.
THE CONSTRUCTION OF SMALLER UNITS CONTINUED TO PREDOMINATE WITH UNITS IN THE SIZE RANGE 20 TO 29.9 SQUARE METRES BEING THE MOST POPULAR. UNITS IN THE SIZE RANGE 30 TO 39.9 SQUARE METRES ARE EXPECTED TO FORM THE BULK OF NEW DEVELOPMENT IN 1981. ALTHOUGH THE PRODUCTION OF HOUSES IN 1980 WAS UP ON PREVIOUS YEARS A LARGE PROPORTION OF THE YEAR'S SUPPLY WAS OF SMALL UNITS IN AN OUTLYING DISTRICT OF THE NEW TERRITORIES.
TOTAL DOMESTIC VACANCIES AT DECEMBER 1980 WERE AROUND 17 000 UNITS AND ALTHOUGH THIS IS UP ON LAST YEAR'S FIGURE IT REPRESENTS ONLY 3.6 PER CENT OF THE YEAR-END STOCK, A REASONABLY INSIGNIFICANT PROPORTION GIVEN THE NORMAL DAY TO DAY MOVEMENTS WHICH MUST OCCUR IN SUCH A MARKET. FURTHERMORE, OVER 7 800 UNITS OR 46 PER CENT WERE IN BUILDINGS COMPLETED ONLY IN THE LAST SIX MONTHS OF THE YEAR.
RENTALS SHOWED A SUBSTANTIAL INCREASE FOR ALL CLASSES OF DOMESTIC PREMISES DURING 1980, WITH AVERAGE INCREASES RANGING FROM 50 PER CENT TO 75 PER CENT OVER 1979 FIGURES. THERE WAS, HOWEVER, SOME INDICATION OF A LEVELLING OFF OF RENTS TOWARDS THE END OF THE YEAR, PARTICULARLY AT THE TOP END OF THE MARKET WHERE AN ANTICIPATED IMPROVED SUPPLY OF LARGER UNITS IN 1981 AND 1982 SHOULD FURTHER EASE THE SITUATION.
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