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On commercial property, prices of office space fell markedly in the first quarter, amidst subdued investment demand and a more abundant supply.
At the end of March, prices for prominent office strata titles had fallen by about 20% from their peak level in the second quarter of last year.
Reflecting tenant resistance to the large rental increases and the more abundant supply, rentals of office space also registered a decline.
Prices and rentals of shopping space were likewise under downward pressures, against the background of a slow- down in retail business.
On industrial property, both the sales and rental markets for conventional flatted factory space remained quiet.
Investment interest in modern multi-purpose industrial premises also slackened, given an ample supply in the pipeline. Rentals for these premises nevertheless held steady in the light of a sustained end-user demand.
Inflation
Consumer price inflation picked up in the first quarter of 1995.
On a year-on-year comparison, the Consumer Price Index (A) rose by 9.5% in the first quarter of this year, up from 8.5% in the fourth quarter of last year.
The CPI(B) also recorded a faster increase of 10.0% in the first quarter, compared with 9.3% in the preceding quarter.
On the other hand, the Hang Seng CPI had a slower increase of 10.0% in the first quarter, as against 10.5% in the preceding quarter.
In addition to continuing inflationary pressures from domestic sources, the CPIs were also pushed up by a greater amount of imported inflation.
The decelerated increase in the Hang Seng CPI was attributable to a less rapid increase in rentals of large flats, which more than offset the effect of a pick-up in the prices of basic foodstuffs.
The Composite CPI, as an aggregate measure of consumer price inflation covering these three indices, had an increase of 9.8% in the first quarter, faster than that of 9.3% in the preceding quarter.