XN000022-1977-05-24 — Page 2

TUESDAY, MAY 24, 1977

PROPERTY REVIEW 1977

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THE PROPERTY REVIEW 1977 WAS RELEASED TODAY BY THE COMMISSIONER OF RATING AND VALUATION. IT IS NOW ON SALE AT THE GOVERNMENT PUBLICATIONS CENTRE AT THE GENERAL POST OFFICE BUILDING, CONNAUGHT PLACE, AT $40 A COPY.

COMMENTING ON THE REVIEW, THE COMMISSIONER, MR. RAYMOND FRY, SAID THAT, AS IN PREVIOUS YEARS, THE PUBLICATION CONTAINS A WEALTH OF INFORMATION ON THE PROPERTY SITUATION IN HONG KONG, AND SHOULD BE OF INTEREST TO THOSE INVOLVED IN OR ASSOCIATED WITH THE LOCAL PROPERTY MARKET.

THE SCOPE OF THE REVIEW HAS BEEN FURTHER EXPANDED TO INCLUDE MORE OF THE DEVELOPING AREAS OF THE NEW TERRITORIES WHERE BUILDING ACTIVITY IS INCREASING AT A RAPID PACE.

THE REVIEW SHOWS THAT THE PROPERTY MARKET WAS VERY ACTIVE DURING 1976 AND, EXCEPT GENERALLY IN THE CASE OF OFFICES, INCREASES IN RENTALS AND PURCHASE PRICES WERE RECORDED FOR MOST CLASSES, THE MOST SIGNIFICANT INCREASES BEING IN RESPECT OF FLATTED FACTORIES.

THE SUPPLY OF DOMESTIC ACCOMMODATION IMPROVED SLIGHTLY WITH 15,500 UNITS COMPLETED IN 1976, AND UNITS WERE TAKEN UP AT A FASTER RATE. COMPLETIONS ARE EXPECTED TO RISE SIGNIFICANTLY TO 23,500 UNITS IN 1977 AND COULD WELL EXCEED 28,000 IN 1978.

FOLLOWING THE RECOVERY OF THE ECONOMY, THE AMOUNT OF VACANT SHOP SPACE DWINDLED TO SLIGHTLY OVER ONE MILLION SQUARE FEET, WHICH IS A REDUCTION OF 37 PER CENT OVER 1975, INDICATING A GREATLY IMPROVED DEMAND FOR SUCH ACCOMMODATION. VACANCIES IN PRIME POSITIONS IN THE MAIN TOURIST CENTRES REMAINED AT A PARTICULARLY LOW LEVEL. TOTAL SUPPLY FOR THE YEAR WAS 1.16 MILLION SQUARE FEET, AND AN INCREASED SUPPLY OF OVER 1.5 MILLION SQUARE FEET PER YEAR IS FORECAST FOR 1977 AND 1978.

IN REGARD TO OFFICE ACCOMMODATION THE MOST NOTABLE FEATURE IS THE RECORD TAKE-UP OF SPACE FOR THE YEAR AT 2.3 MILLION SQUARE FEET, IT WAS MORE THAN TWICE THE AMOUNT TAKEN UP IN 1975. NEVERTHELESS, BECAUSE OF HIGH VACANCIES AT THE END OF 1975 (2.7 MILLION SQUARE FEET) THERE WAS STILL SOME 2.5 MILLION SQUARE FEET VACANT AT THE END OF THE YEAR. THE HIGH VACANCY POSITION HAS ALSO AFFECTED COMPLETIONS WITH OCCUPATION PERMITS BEING ISSUED FOR ONLY 2.2 MILLION SQUARE FEET. AS COMPARED WITH 2,7 MILLION SQUARE FEET IN 1975. THERE HAS BEEN LITTLE MOVEMENT IN RENTS FOR GRADE A ACCOMMODATION, BUT FURTHER REDUCTIONS WERE NOTED IN RESPECT OF LESS ATTRACTIVE BUILDINGS AND THOSE OUTSIDE THE MAIN COMMERCIAL CENTRES.

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