XN000022-1973-03-16 — Page 4

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Friday, March 16, 1973

Around 1.65 million square feet is expected to be completed in 1973,

with 1.4 million to follow in 1974 which, it is thought, should adequately

satisfy the demand for this type of accommodation.

However, it should be noted that much of what is now available, or

to become available in 1973 and 1974, is not in the prime trading areas.

The department's rental index for shops showed an average increase

over the year of 16.56 per cent and an average rental rate per month per square

foot of $3.22.

The amount of new office accommodation completed during 1972 (nearly

600,000 square feet) was considerably less than that estimated previously duc

primarily to work having been delayed on several projects which should now be

completed this year.

Space

This shortfall in expectations, together with a heavy demand for office

accommodation, has reduced the amount of space vacant at the end of 1972 to one

half of the vacancy figure of a year ago.

The amount of space estimated to be available in 1973 should average

about 130,000 square feet, per month, and the forecast for 1974 is some 3.3

million square feet.

However, much of what is expected to be built will be outside the

Central District of Hong Kong Island.

Office rentals continued to rise during the year with an average increase

of some 15 per cent; however, it must be noted that this is an overall average

figure and that for first class accommodation in central positions the increase

was generally rather higher.

/A total ..................