XN000022-1975-09-08 — Page 2

MONDAY, SEPTEMBER 8, 1975

MID-YEAR PROPERTY SURVEY

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SOME 14,000 DOMESTIC UNITS SHOULD BE COMPLETED DURING THIS YEAR, ACCORDING TO MR. RAYMOND FRY, COMMISSIONER OF RATING AND VALUATION.

THE NUMBER OF COMPLETIONS DURING 1976 WOULD PROBABLY BE LOWER, HE SAID, BUT AN IMPROVEMENT WAS FORECAST FOR 1977 WHEN OVER 16,000 UNITS ARE SCHEDULED FOR COMPLETION. THIS SEEMS TO INDICATE INCREASING ACTIVITY BY PRIVATE DEVELOPERS IN THE DOMESTIC PROPERTY MARKET, HE ADDED.

MR. FRY WAS COMMENTING ON THE MID-YEAR PROPERTY SURVEY CARRIED OUT BY HIS DEPARTMENT IN JULY THIS YEAR.

ACCORDING TO THE SURVEY, THE DOMESTIC RENTAL INDEX MOVED UP 3.41 POINTS DURING THE FIRST SIX MONTHS OF THE YEAR -- AN INCREASE OF TWO PER CENT.

AS THE MAJORITY OF DOMESTIC TENANCIES ARE SUBJECT TO REGULATED INCREASES UNDER THE RENT CONTROL LEGISLATION, RENTS CONTINUED GENERALLY UPWARDS BUT ARE STILL SOME WAY BELOW CURRENT OPEN MARKET LEVELS, MR. FRY EXPLAINED,

MR. FRY SAID THE AMOUNT OF SHOP SPACE LYING VACANT HAD INCREASED FROM 1.43 MILLION SQUARE FEET AT DECEMBER 1974 TO 1,62 MILLION SQUARE FEET AT JULY 1975 FOLLOWING FURTHER COMPLETIONS.

THE SHOP RENTAL INDEX SHOWED AN INCREASE OF 7.14 POINTS OR ABOUT THREE AND A HALF PER CENT OVER THE DECEMBER 1974 FIGURE, REFLECTING A GENERAL SLOVING-DOWN OF RENT INCREASES. HOWEVER THERE IS STILL A FAIRLY GOOD DEMAND FOR RENTED SHOPPING SPACE, PARTICULARLY IN PRIME SHOPPING AREAS.

ON THE INCREASE IN VACANT OFFICE SPACE, MR. FRY SAID ABOUT 1.7 MILLION SQUARE FEET WAS NOW VACANT, AN INCREASE OF ADOUT 0.6 MILLION SQUARE FEET ON THE DECEMBER 1974 FIGURE. MOST OF THE NEW VACANCIES OCCURRED IN SHEUNG WAN DISTRICT BUT CENTRAL AND WAN CHAI DISTRICTS ALSO HAD SIGNIFICANT VACANCY SITUATIONS. THE INCREASE IN THE AMOUNT OF VACANT OFFICE SPACE CAN BE ATTRIBUTED PRIMARILY TO THE INCREASE IN SUPPLY DURING THE FIRST SIX MONTHS OF THIS YEAR.

OFFICE RENTAL LEVELS HAVE FALLEN SINCE DECEMBER LAST YEAR WITH OFFICES OF POORER QUALITY COMING UNDER PRESSURE. RENTS OF GOOD CLASS ACCOMMODATION IN CENTRAL BUSINESS AREAS HELD UP FAIRLY WELL, HOWEVER, WITH AN AVERAGE REDUCTION OF ONLY SIX PER CENT.

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