3 -
Large units (Saleable area 100 square metres and over)
The supply of large units in 1994 amounted to 2,000, 38% up on the forecast at the beginning of the year. This supply figure represents a more than doubling of the 1993 supply.
The "traditional" locations, Mid-levels and Island South on Hong Kong Island, accounted for around 880 units, with the remainder completed in the New Territories, largely in the districts of Yuen Long, Sha Tin and Discovery Bay.
Take-up in 1994 was just over 1,000 units, a figure equivalent to only 50% of the year's supply. The year-end vacancy figure rose as a result, to 4.8% of stock. As in the case of the small/medium category, almost 28% of the year's supply was completed in December.
Supply in 1995 should amount to 2,060 units, but in 1996 it is likely to drop to below 1,200. A significant proportion of the 1995 supply, around 79%, will be in the New Territories. In 1996, supply will be more evenly split between Hong Kong Island and the New Territories.
Overall
The analysis of transactions in the selected established residential developments, listed at Appendix A, shows that prices in January 1995 have continued to fall, and by the middle of the month, were, on average. 14% down from the April 1994 peak.
The regular quarterly price and rental indices show overall increases at the end of 1994 of 18% and 21% respectively over a year earlier.
Offices
Overall supply in 1994 was around 502,000 square metres, 22% more than supply in 1993.
Take-up of offices overall was 226,000 square metres, a figure representing less than half of the year's supply. Vacancy rose as a result, to 9.8% of stock, a similar level to 1992.
Supply in 1995 is forecast to fall to 394,000 square metres with 1996 expected to see supply increasing again, to 478,000 square metres. Present indications are that supply in 1997 will significantly exceed that of 1996, and most of this will be Grade A.