4
The year-end overall price and rental indices show increases of 25% and 23% respectively over the end of 1993 levels.
Grade A
The supply of Grade A space in 1994, at 330,000 square metres, was up on 1993 levels by around 74%. Almost half of the year's supply was in Tsim Sha Tsui.
Take-up of Grade A space in 1994 was 102,000 square metres, a figure well below supply for the year, resulting in a rise in vacancy to 10.2% of stock. The fact that around 50% of the supply in the year was completed in the last quarter contributed to the higher vacancy.
Supply in 1995 is expected to be around 236,000 square metres with Hung Hom accounting for more than 40% of the space. Forecasts for 1996 point to 217,000 square metres of completions and most of this will be in Central and North Point.
Grade B
levels.
Grade B supply in 1994, at 114,000 square metres, was 25% down on 1993
Take-up of Grade B space was 91,000 square metres, a level 20% below the year's supply. Vacancy at the year-end, at 10.2% of stock, remained very much the same as in 1992 and 1993.
Supply will fall again in 1995, to 94,000 square metres but 1996 is expected to see 144,000 square metres of completions, spread fairly well throughout the various Hong Kong and Kowloon districts.
Grade C
Grade C accommodation now tends to be that built on small cramped sites giving limited floorplate sizes.
At 58,000 square metres, supply in 1994 was 19% down on 1993.
Grade C take-up amounted to 33,000 square metres, 43% less than supply, and year-end vacancy stood at 8% of stock.
Supply in 1995 is expected to be 64,000 square metres, and in 1996, it is expected to rise significantly to 117,000 square metres, more than half in Sheung Wan and North Point districts.