I
WEDNESDAY, APRIL 22, 1981
SALE PRICES, FOLLOWING AN INITIAL DOWNTURN AS A RESULT OF THE EXTENSION OF RENT CONTROLS AND SUGGESTIONS THAT GOVERNMENT INTENDED INTRODUCING LEGISLATION TO COMBAT SPECULATION, INCREASED SLOWLY DURING THE YEAR WITH AVERAGE INCREASES VARYING FROM 18 PER CENT TO 39 PER CENT OVER 1979.
SHOPS
IN THE RETAIL SECTOR, 180 600 SQUARE METRES OF SHOP SPACE WAS COMPLETED IN 1980, A CONSIDERABLE INCREASE ON 1979. SUBSTANTIAL
INCREASES ARE FORECAST FOR 1981 AND 1982 AS MORE SPACE IN THE TSIM SHA TSUI EAST DEVELOPMENTS COMES ON-STREAM. VACANCIES AT THE END OF 1980 STOOD AT 221 700 SQUARE METRES, UP ALMOST 50 PER CENT ON THE PREVIOUS YEAR AND THE HIGHEST VACANCY SITUATION EVER RECORDED.
OFFICES 1
A RECORD SUPPLY OF 296 700 SQUARE METRES OF OFFICE SPACE WAS PRODUCED IN 1980, A 66 PER CENT INCREASE OVER THE SUPPLY FOR 1979. FORECASTS INDICATE THAT THE RAPID INCREASE IN SUPPLY WILL BE MAINTAINED OVER THE NEXT TWO YEARS WITH 417 600 SQUARE METRES SCHEDULED FOR COMPLETION IN 1981 AND 554 000 SQUARE METRES IN 1982.
A HIGHER STANDARD OF ACCOMMODATION IS NOW BEING PRODUCED MR FRY SAID, WITH OVER 70 PER CENT OF THE YEAR'S SUPPLY CLASSIFIED AS GRADE A, AND FORECASTS INDICATE THAT THIS TREND WILL CONTINUE IN 1981.
WHILE THEREAFTER, THE BALANCE WILL SHIFT TO THE LOWER GRADES. THE BULK OF NEW ACCOMMODATION CONTINUED TO BE LOCATED ON HONG KONG ISLAND, FORECASTS FOR 1981 AND 1982 INDICATE A LARGER PROPORTION OF COMPLETIONS OCCURRING IN OTHER AREAS.
OF A TOTAL OF 202 900 SQUARE METRES VACANT AT DECEMBER 1980, 46 PER CENT WAS COMPLETED ONLY IN THE LAST THREE MONTHS OF THE YEAR WHILE ONLY 14 PER CENT RELATED TO PREMISES BUILT BEFORE 1980.
RENTS MORE THAN DOUBLED DURING THE YEAR WITH AVERAGE RENTS RANGING FROM THE LOWEST GRADE C AT $80 PER SQUARE METRE TO THE HIGHEST GRADE A AT $217. THERE WAS, HOWEVER, SOME INDICATION OF A LEVELLING OFF OF RENTS TOWARDS THE END OF THE YEAR AS THE BULK OF THE SUPPLY CAME ON-STREAM.
FLATTED FACTORIES:
THE OUTTURN OF FLATTED FACTORY ACCOMMODATION AT 976 700 SQUARE METRES WAS IN LINE WITH THE FORECAST. ANTICIPATED COMPLETIONS TOTAL 1 074 200 SQUARE METRES IN 1981 AND A RECORD 1.75 MILLION SQUARE METRES IN 1982.
THE LARGEST ADDITIONS CONTINUED TO BE IN THE NEW TERRITORIES WHICH NOW ACCOUNTS FOR 41 PER CENT OF THE ENTIRE STOCK.
THE TOTAL VACANCY POSITION AS AT DECEMBER WAS JUST OVER 476 000 SQUARE METRES, OF WHICH 79 PER CENT WAS IN BUILDINGS COMPLETED IN 1980. DEMAND FOR NEW ACCOMMODATION CONTINUED AT A HIGH LEVEL WITH THE AMOUNT OF SPACE TAKEN UP IN 1980 EQUAL TO 111 PER CENT OF THE YEAR'S SUPPLY.
THE COMMISSIONER NOTED THAT PURCHASE PRICES HAD INCREASED BY AN AVERAGE OF 43 PER CENT OVER 1979 AS COMPARED TO AVERAGE RENTS WHICH REGISTERED A 33 PER CENT INCREASE FOR THE SAME PERIOD.
/CONCLUSION