XN000022-1973-02-28 — Page 20

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Wednesday, February 28, 1973

RENT INCREASES EXPECTED TO SLOW DOWN

Rent increases in both domestic and industrial premises should slow

down this year as a result of a more rapid supply of new accommodation becoming

available, the Financial Secretary, the Hon. C.P. Haddon-Cave, predicted in his

Budget speech today.

This, he said, could be seen in the case of industrial rents where

the average increase in 1972 was less than 32 per cent due to a good supply

of additional floor space becoming available during the year.

While there had been no easing of rent levels last year in the case

of private domestic accommodation, Mr. Haddon-Cave strongly believed that the

level of rents in this sector "should at least stabilise" in the course of this

year.

The prospect for 1973, he said, was for 30,000 domestic units to be

completed, as compared with 20,000 last year and 12,000 in 1971,

Conceding that rents had not been anything like as stable as other

prices, Mr. Haddon-Cave said this had resulted from a shortage of accommodation

in relation to demand.

In this respect, he added, Hong Kong was still suffering from the

slowing down of construction activity in the late Sixties which stemmed from

the events of 1965-67.

He stressed, however: "From now on, new accommodation will be coming

onto the market at a more rapid rate and this should lead to a slowing down

of rent increases. 村

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