WEDNESDAY, MARCH 17, 1982
THE SOFTENING OF THE MARKET HAS, FOR MANY SPECULATORS, ELIMINATED THE PROSPECT OF REALISING A PREMIUM AND RENTS OBTAINABLE ARE NOT, IN MANY INSTANCES, SUFFICIENT TO COVER FINANCING COSTS AT CURRENT RATES OF INTEREST.
DESPITE THE CHANGED SITUATION, RENTALS CONTINUED TO INCREASE FOR ALL CLASSES OF ACCOMMODATION DURING 1981, WITH AVERAGE INCREASES RANGING FROM 29 PER CENT TO 37 PER CENT OVER 1980 FIGURES. THERE WAS, HOWEVER, A SIGNIFICANT LEVELLING-OFF TOWARDS THE END OF THE YEAR.
A BALANCED SUPPLY OF UNITS IN ALL CLASSES IN 1982, TOGETHER WITH THE AVAILABILITY FOR LETTING OF A PROPORTION OF CURRENTLY VACANT STOCK, SEEMS LIKELY TO HAVE A DAMPENING EFFECT ON RENTS AT LEAST FOR THE EARLY PART OF 1982. WHILE THE SALES MARKET WAS DULL, PARTICULARLY DURING THE LATTER HALF OF THE YEAR, RECORDED SALES ALSO SHOWED AN UPWARD MOVEMENT IN 1981 OVER 1980.
MR FRY POINTED OUT THAT, NOTWITHSTANDING THE GOVERNMENT'S VERY LARGE HOUSING PROGRAMME, THERE WOULD CONTINUE TO BE A SHORTFALL FOR SOME YEARS TO COME, A SHORTFALL THE PRIVATE SECTOR MUST HELP TO FILL. THE OBJECT MUST BE TO BRING THE COST OF HOUSING WITHIN THE AFFORDABLE LEVEL OF THOSE SEEKING HOMES.
HE MENTIONED THAT AN INCREASED DEMAND FOR HOUSING WAS LIKELY TO BE GENERATED BY CHINA'S NEEDS, BOTH IN TRADING AND THE PROVISION OF SERVICES, GOVERNMENT'S HOME PURCHASE SCHEME FOR CIVIL SERVANTS AND GOVERNMENT'S HOUSING REQUIREMENTS FOR STAFF SO ENTITLED.
COMMERCIAL I
IN THE COMMERCIAL SECTOR, SUPPLY FOR THE YEAR WAS 314 000 SQUARE METRES, AN INCREASE OF 15 PER CENT OVER THE 1980 SUPPLY. FURTHER LARGE INCREASES ARE EXPECTED IN 1982 AND 1983, AT 383 000 SQUARE METRES AND 410 000 SQUARE METRES, RESPECTIVELY.
THE VACANCY POSITION HAS INCREASED TO 423 000 SQUARE METRES, AN INCREASE OF 27 PER CENT, DESPITE A LARGER TAKE-UP OF SPACE IN 1981.
MR FRY EXPLAINED THAT MUCH OF THE SPACE PROVIDED LAST YEAR, WAS IN ARCADED SHOPPING CENTRES WHERE OCCUPANCY HAS BEEN LOW BECAUSE OF POOR PLANNING AND INADEQUATE MANAGEMENT, WHILE PRIME SHOPPING SPACE WILL CONTINUE TO ATTRACT OCCUPIERS IT SEEMS LIKELY THAT VALUES GENERALLY FOR THIS CATEGORY WILL SOFTEN FURTHER IN 1982.
MUCH OF THE SUPPLY IN 1982 AND 1983 WILL ALSO BE IN ARCADED SHOPPING CENTRES, THE SUCCESS OF WHICH WILL DEPEND VERY MUCH ON LOCATION AND MANAGEMENT,
RENTS SHOWED SOME SOFTENING TOWARDS THE END OF THE YEAR AND TRADING IN SHOP UNITS WAS DULL.
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