XN000022-1984-04-26 — Page 5

THURSDAY, APRIL 26, 1984

+THE RENTAL INDEX FOR THE URBAN AREA FELL BY 21 PER CENT OVER THE YEAR AND THE PRICE INDEX BY 15 PER CENT.

+THE PERFORMANCE OF CERTAIN SECTORS OF THE PROPERTY MARKET IN 1983 BODES WELL FOR THE FUTURE AND SUGGESTS THAT A REVIVAL COULD BE IN SIGHT. THIS IS PARTICULARLY SO FOR SMALLER DOMESTIC UNITS. WHERE CONTINUED LOW INTEREST RATES AND THE REALISTIC APPROACH OF DEVELOPERS HAVE BEEN IMPORTANT FACTORS.+

MR FRY SAID THAT IN CONTRAST, THE IMMEDIATE OUTLOOK FOR LARGER UNITS REMAINED LESS BRIGHT DESPITE THE REDUCED FORECASTS FOR 1984 AND 1985. A CONTINUED HIGH LEVEL OF TAKE-UP AND ANY SIGNIFICANT POLITICAL OR ECONOMIC SHIFTS COULD, HOWEVER, QUICKLY CHANGE THE BALANCE OF SUPPLY AND DEMAND SINCE THE NUMBER OF UNITS INVOLVED WAS COMPARATIVELY SMALL.

THE INCREASE IN TAKE-UP OF BOTH COMMERCIAL AND FLATTED FACTORY ACCOMMODATION WAS ENCOURAGING, WITH LOWER RENTALS AND PRICES STIMULATING DEMAND.

+THERE REMAIN, HOWEVER, WEAKNESSES IN BOTH SECTORS, NOTABLY THE LESS WELL-MANAGED ARCADED SHOP DEVELOPMENTS AND OLDER POORLY SERVICED FLATTED FACTORIES, WHICH SEEM LIKELY TO DIMINISH EARLY RECOVERY PROSPECTS.

+THE HIGH LEVEL OF VACANCIES IN THE OFFICE SECTOR AND THE FORECAST SUPPLY FOR 1984 AND 1985 ALSO SEEMS LIKELY TO PRECLUDE ANY EARLY UPTURN. A PROBLEM AREA HERE IS THE INCREASING VACANCY POSITION IN LESS WELL-MANAGED BUILDINGS IN THE OLDER COMMERCIAL CENTRES AND BUILDINGS OUTSIDE THE ESTABLISHED COMMERCIAL CENTRES.

+WITH A MORE STABLE RENTAL MARKET AND THE FURTHER SOFTENING OF PRICES OVER THE YEAR, GENERALLY, PROPERTY YIELDS ARE NOW FAIRLY ATTRACTIVE AS AGAINST OTHER FORMS OF LOCAL INVESTMENT, + HE SAID.

NOTE TO EDITORS:

FURTHER FACTUAL INFORMATION MAY BE OBTAINED FROM MR STEPHEN WILCOX ON 5-7957614 OR MR YEUNG CHE-KEUNG ON 5-7957629.

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