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WEDNESDAY, JULY 31, 1985
AT ITS FIRST MEETING TODAY (WEDNESDAY), THE COMMITTEE WAS TOLD THAT FOREIGN CAPITAL, PARTICULARLY FROM SOUTHEAST ASIA, CONTINUED TO FLOW INTO THE MONEY MARKET RESULTING IN CREDIT EXPANSION AND LOWERING OF INTEREST RATES.
THE REPORT SAID: THIS TREND WILL OF COURSE FURTHER STIMULATE THE PROPERTY MARKET, PUSHING PRICES UP TO NEW LEVELS. HOWEVER, IT IS UNLIKELY THAT PRICES WILL RETURN TO THE LEVELS OF THE LAST BOOM IN 1981.+
IT SAID THAT SUBSTANTIAL INCREASES IN PRICES WERE EXPECTED FROM SITES FOR RESIDENTIAL ZONE 2 AND ZONE 3 DEVELOPMENTS IN THE URBAN AREAS AND FOR HIGH-GRADE FACTORY SPACE IN GOOD LOCATIONS.
THERE WOULD BE A HEALTHY MARKET FOR HIGH-CLASS RESIDENTIAL FLATS ALTHOUGH SMALL FLATS WERE NOT LIKELY TO INCREASE IN PRICE.
FROM BEING A DEPRESSED MARKET SIX MONTHS AGO WITH INVESTORS VERY CAUTIOUS ABOUT PROPERTY +HONG KONG HAS SUDDENLY BECOME A GOOD PLACE FOR INVESTORS AND SPECULATORS IN BOTH THE STOCK AND PROPERTY MARKETS, THE REPORT SAID.
+SOME SECTORS OF THE MARKET HAVE SEEN LAND VALUES INCREASE BY MORE THAN 100 PER CENT OVER THOSE OF SIX MONTHS AGO.◄
IT SAID TOTAL TRANSACTIONS IN THE FIRST QUARTER OF THIS YEAR ALREADY EXCEEDED ONE-THIRD OF THE ENTIRE 1984 FIGURE.
THE LUXURY END OF THE RESIDENTIAL MARKET HAD EXPERIENCED A DRAMATIC UPTURN IN THE PAST FOUR MONTHS WITH FLAT SALE PRICES RISING BY MORE THAN 30 PER CENT AND LAND PRICES RISING BY 100 PER CENT.
THE REPORT SAID: +PRICES OF $15 000 PER SQUARE METRE HAVE BEEN SEEN IN SOME LUXURY FLAT TRANSACTIONS. THE ACCOMMODATION VALUE HAS GENERALLY RISEN TO AN AVERAGE OF $7 000 PER SQUARE METRE WITH AN EXPECTATION OF MORE THAN $8 000 PER SQUARE METRE TOWARDS THE END OF THE YEAR.+
ACCORDING TO THE REPORT THE MARKET FOR OFFICE SPACE HAD IMPROVED SINCE THE SIGNING OF THE SINO-BRITISH AGREEMENT ON HONG KONG'S FUTURE.
IN 1984 THE UPTAKE OF OFFICE SPACE HAD REACHED A RECORD 449 000 SQUARE METRES AND THE VACANCY RATE HAD DROPPED FROM 20.6 PER CENT OF TOTAL STOCK IN 1983 TO 13.8 PER CENT IN 1984.
HOWEVER, THE OFFICE SECTOR WAS STILL BESET BY AN OVER-SUPPLY SYNDROME ESPÉCIALLY IN CENTRAL AND WAN CHAI, THESE DISTRICTS WOULD BE AFFECTED BY THE NEW HONG KONG BANK HEADQUARTERS, SHUN TAK CENTRE, NEW GOVERNMENT OFFICE BUILDINGS, EXCHANGE SQUARE, FLEET HOUSE, BANK OF CHINA BUILDING AND OTHERS UNLOADING ADDITIONAL OFFICE SPACE ON TO THE MARKET.
AIN TSIM
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