THURSDAY, JANUARY 16, 1986
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PROPERTY MARKET CONSOLIDATES
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THE PROPERTY MARKET CONTINUED TO BE ACTIVE FROM JULY TO DECEMBER LAST YEAR, ALTHOUGH IT CONSOLIDATED SOMEWHAT TOWARDS THE END OF THE YEAR.
THIS IS STATED IN A REPORT ON THE PROPERTY MARKET WHICH, TOGETHER WITH A PAPER ON SPECULATION IN THE PROPERTY MARKET, WAS CONSIDERED AT A MEETING TODAY OF THE LAND AND BUILDINGS ADVISORY COMMITTEE (LBAC).
THE REPORT STATES THE MARKET FOR MOST CATEGORIES OF RESIDENTIAL PROPERTY HAD GENERALLY STABILISED.
NOTING THAT IN JULY THE REGISTRAR GENERAL'S DEPARTMENT RECORDED 32 000 PROPERTY TRANSACTIONS -- THE HIGHEST NUMBER FOR THE YEAR -- THE PAPER SAID HOWEVER, THAT PROSPECTIVE BUYERS, PROPERTY DEVELOPERS AND FINANCIAL INSTITUTIONS APPEARED TO BE TAKING A MORE REALISTIC AND CAUTIOUS VIEW OF PROPERTY PRICES.
LARGE VALUE TRANSACTIONS WERE SCARCE.
ON THE RESIDENTIAL PROPERTY MARKET THE REPORT SAID THE DEMAND FOR ACCOMMODATION CONTINUED TO STRENGTHEN DURING MOST OF 1985 DUE TO THE CONTINUATION OF HISTORICALLY LOW PROPERTY PRICES COMPARED TO THE EARLY 1980'S, BETTER CREDIT TERMS AND LOWER MORTGAGE RATES.
ALTHOUGH THERE WERE SIGNS IN THE MIDDLE OF THE YEAR OF SPECULATION CREEPING BACK, IT WAS QUITE CLEAR BY THE END OF THE YEAR THAT THIS SPECULATION WAS SHORT-LIVED.
ALTHOUGH THERE WAS RISING DEMAND DURING THE EARLIER PART OF THE YEAR, THE SUPPLY OF NEW PRIVATE ACCOMMODATION ALSO SHOWED mi SUBSTANTIAL INCREASE.
COMPARING THE FIRST 10 MONTHS OF 1985 WITH THE CORRESPONDING PERIOD IN 1984, THE REPORT SHOWED COMPLETIONS ROSE 40 PER CENT TO 23 890 UNITS.
+ IT IS EXPECTED THAT SUPPLY BY THE END OF 1985 WILL SHOW AN INCREASE OF ABOUT 36 PER CENT OVER ACTUAL COMPLETIONS IN 1984, + THE REPORT SAID.
PRICES OF SMALL AND MEDIUM-SIZED FLATS WERE IN THE REGION OF $9 000 - $12 000 PER SQUARE METRE, ABOUT 20 PER CENT HIGHER THAN THOSE AT THE BEGINNING OF THE YEAR.
THE REPORT SAID SALES OF LARGER-SIZED ACCOMMODATION AT THE LUXURY END OF THE MARKET SHOWED A STRONG RECOVERY DURING THE MIDDLE OF 1985, DUE TO +PENT UP DEMAND+ WHICH HAD BEEN KEPT BACK IN PREVIOUS YEARS BY HIGH INTEREST RATES AND UNCERTAINTY ABOUT THE FUTURE OF HONG KONG.
VIT SID