THE PROPERTY MARKET
FRIDAY, NOVEMBER 25, 1994
TRADING ACTIVITY IN THE RESIDENTIAL PROPERTY MODERATE IN THE THIRD QUARTER.
MARKET REMAINED
INCREASES
IN
THE PACKAGE OF MEASURES ANNOUNCED IN EARLY TASK FORCE
LOCAL INTEREST
BY
TOGETHER
CONTINUED
WITH TO
THE
TAKE
THE GOVERNMENT'S
JUNE, RATES,
FLAT PRICES HAD FALLEN
SUCCESSIVE EFFECT. SPECULATIVE ACTIVITIES HAD SUBSIDED. BY AROUND 10-20% FROM THEIR PEAK LEVEL IN MARCH/APRIL. MORE FLEXIBLE PAYMENT TERMS BEING OFFERED BY SOME WITH REDUCED PRICES, RESPONSE TO SALES OF FLATS WAS ENTHUSIASTIC THAN IN THE EARLIER PART OF THE YEAR.
REFLECTING RENTALS CONTINUED TO RISE STEADILY, DEMAND.
DESPITE THE
DEVELOPERS ALONG GENERALLY LESS MEANWHILE, FLAT END-USER
SUSTAINED
SPACE GENERALLY LIMITED SUPPLY
ON COMMERCIAL PREMISES, THE PRICES OF OFFICE STABILISED IN THE THIRD QUARTER. HOWEVER, DUE TO AGAINST THE STRONG END-USER DEMAND, RENTALS OF GRADE A OFFICE SPACE IN THE DEMAND FOR SHOPPING SPACE WAS PRIME LOCATIONS INCREASED FURTHER.
PRICES SUPPORTED BY CONTINUED GROWTH IN CONSUMER SPENDING, WITH BOTH
AS TO INDUSTRIAL PROPERTY, THE AND RENTALS SHOWING FURTHER INCREASES.
ΤΟ ON-GOING RELOCATION OF MANUFACTURING PROCESSES TO CHINA CONTINUED DAMPEN THE SALES AND RENTAL MARKETS FOR CONVENTIONAL FLATTED FACTORY PREMISES. BUT MODERN MULTI-PURPOSE INDUSTRIAL PREMISES DESIGNED ALSO IN FOR OFFICE USE FARED MUCH BETTER. THERE WAS ALSO A KEEN INTEREST
BUILDINGS WITH THE
POTENTIAL OF ACQUISITION REDEVELOPMENT INTO MODERN INDUSTRIAL-CUM-OFFICE BUILDINGS.
THE FINANCIAL SECTOR
OLD
INDUSTRIAL
FOR
AGAINST THE LINKED RATE
OF
THE MARKET EXCHANGE RATE OF THE HONG KONG DOLLAR U.S. DOLLAR REMAINED STABLE ON THE STRONG SIDE OF THE DURING THE THIRD QUARTER. FOLLOWING CLOSELY THE MOVEMENT IN US DOLLAR INTEREST RATES, HONG KONG DOLLAR INTEREST RATES WERE RAISED BY 0.5
DESPITE THE INTEREST A PERCENTAGE POINT IN THE LATTER PART OF AUGUST.
THE U.S. DOLLAR RATE INCREASE, THE HONG KONG DOLLAR IN LINE WITH
MAJOR EUROPEAN CONTINUED TO WEAKEN AGAINST THE JAPANESE YEN AND THE
THIRD QUARTER. AS A DURING CURRENCIES
THE
RESULT, EXCHANGE RATE INDEX OF THE HONG KONG DOLLAR REMAINED ON A CLOSING THE THIRD QUARTER AT 121.6.
THE
EFFECTIVE DOWNTREND,
THE GROWTH RATES OF BOTH HONG KONG DOLLAR DEPOSITS DOLLAR LOANS SHOWED FURTHER INCREASES DURING THE THIRD
A SLOWER AT
PACE THAN DURING
SECOND QUARTER. GROWTH IN LOANS TO
KONG ALBEIT PARTICULAR,
AND HONG
QUARTER,
IN
PROPERTY THE MORE
THE
THE
PURCHASE RESIDENTIAL MODERATED, AS THE RESIDENTIAL PROPERTY MARKET QUIETENED IN RECENT MONTHS. THE NARROW MONEY SUPPLY, HK$M1, RETURNED TO A MODERATE
THE THIRD QUARTER, WHILE THE BROADER MAINTAINED STEADY GROWTH.
INCREASE DURING
HK$M2 AND HK$M3,
MONEY SUPPLY,
/THE HANG