TUESDAY, JULY 27, 1982
HONG KONG INDUSTRY BENEFITS FROM LOWER LAND PRICE
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THE DIRECTOR OF TRADE INDUSTRY AND CUSTOMS, MR PETER TSAO TODAY (TUESDAY) SAID THAT PRICE OF INDUSTRIAL LAND HAD STABILISED TO SUCH A LEVEL THAT INDUSTRIALISTS MIGHT NOW FIND IT ATTRACTIVE TO INVEST.
+POSITIVE EFFORTS TAKEN BY THE GOVERNMENT TO DEVELOP INDUSTRIAL LAND FOR SALE HAVE CHANGED THE LONG SUSTAINED SITUATION IN THE PAST WHERE LAND SUPPLY WAS GROSSLY INADEQUATE, +
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SAID MR TSAO, ADDRESSING THE LUNCHEON MEETING OF THE FEDERATION OF INDUSTRIES IN TSUEN WAN.
QUOTING STATISTICS, HE SAID: +INDUSTRIAL LAND PRICE HAS DROPPED FROM AN AVERAGE OF $14 300 A SQUARE METRE DURING THE PEAK PERIOD IN 1981, TO $5 200 A SQUARE METRE IN THE FIRST HALF OF 1982.
*THE SUPPLY OF FLATTED FACTORY SPACE ROSE FROM 977 000 SQUARE METRES IN 1980 TO 1 121 000 SQUARE METRES IN 1981, WHILST VACANT INDUSTRIAL PREMISES HAVE INCREASED FROM 476 100 SQUARE METRES IN 1980 TO 795 000 SQUARE METRES IN 1981.+
IN TSUEN WAN AND KWAI CHUNG, THE SUPPLY OF FACTORY SPACES AND VACANT INDUSTRIAL PREMISES STOOD AT 493 000 AND 359 000 SQUARE METRES RESPECTIVELY DURING 1981 - ALMOST HALF OF THE TOTAL AMOUNT IN HONG KONG. UNDER THE PRESENT SITUATION POTENTIAL INVESTORS WOULD NOT FIND IT DIFFICULT TO ACQUIRE SUITABLE PREMISES, HE ADDED.
TURNING TO SALES PRICE OF INDUSTRIAL PREMISES, MR TSAO CITED THAT FACTORY SPACE IN KOWLOON BAY, FOR EXAMPLE, WAS SOLD AT $3 500 PER SQUARE METRE IN EARLY 1981 BUT DECLINED TO $667 IN MARCH 1982, AND IN TUEN MUN THE SALE PRICES DECREASED FROM $740 PER SQUARE METRE IN SEPTEMBER 1981 TO $209 IN MAY THIS YEAR.
+THE RISING RENTALS FOR FACTORY SPACE HAVE ALSO LEVELLED OFF SINCE THE LATTER HALF OF 1981 TO A REASONABLE SCALE. ON AVERAGE, MONTHLY RENTS FOR INDUSTRIAL PREMISES IN THE LATTER HALF OF 1980 WAS $25.70 A SQUARE METRE, WHILE IN 1981 AND THE EARLY 1982, THE AVERAGE RENT WAS $29.30 A SQUARE METRE.
+OF THE TOTAL SUPPLY OF FLATTED FACTORY SPACE IN 1981, ABOUT 67 PER CENT WAS LOCATED IN THE NEW TERRITORIES, WITH CONCENTRATION IN TSUEN WAN AND KWAI CHUNG. THIS TREND WOULD CONTINUE INTO 1982 AND 1983.
+HONG KONG INDUSTRY WILL BENEFIT WHEN THE SUPPLY OF LAND IS GREATER THAN DEMAND, BECAUSE LOWER INDUSTRIAL LAND PRICES MEAN CHEAPER SALES PRICE AND RENTALS, WHICH IN TURN LOWER PRODUCTION COSTS. INDUSTRIALISTS AND ENTERPRENEURS, PLANNING TO EXPAND THEIR BUSINESS OR INVEST IN LOCAL MANUFACTURING INDUSTRY, MAY FIND IT OPPORTUNE TO DO SO NOW, HE SUGGESTED.
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