XN000022-1984-11-11 — Page 3

2

SUNDAY, NOVEMBER 11, 1984

THE REPORT POINTS OUT THAT AT THE TIME OF THE SURVEY, FIRMS WERE ON AVERAGE PAYING TWO TO THREE TIMES THE RENTS THEY HAD BEEN PAYING ABOUT FIVE YEARS BEFORE.

YET, WHILE RENTS WERE AN EFFECTIVE +PUSH FACTOR+ TO OFFICE MOBILITY AND DECENTRALISATION+, ACCESSIBILITY REMAINED THE SINGLE MOST IMPORTANT CRITERION IN THE SEARCH FOR AND DECISION ON OFFICE LOCATION.

THE SURVEY INDICATES, ACCORDING TO THE REPORT, THAT AT LEAST FOR THE TIME BEING, +A WIDE GEOGRAPHICAL DECENTRALISATION IN OFFICE DEVELOPMENT PARTICULARLY TO THE NEW TOWNS - IS NOT LIKELY TO OCCUR, GIVEN THE SPECIAL NEEDS OF THE COMMERCIAL SECTOR IN GENERAL+.

THE

THE DEMAND FOR OFFICE SPACE IN THE CENTRAL DISTRICT PRIME OFFICE CENTRE -- IS LIKELY TO GROW WITH HONG KONG'S FURTHER DEVELOPMENT INTO AN INTERNATIONAL FINANCIAL AND BUSINESS CENTRE..

IF SUPPLY DOES NOT KEEP PACE, THE GROWING DEMAND IS BOUND TO FURTHER INCREASE THE COMPETITION FOR OFFICE SPACE, WITH CONSEQUENT EFFECT ON RENT AND PROPERTY PRICES+.

IN SUCH A SITUATION, THE DEMAND FOR OFFICE SPACE WILL TEND TO BE EXTENDED TO SUCH SECONDARY OFFICE CENTRES AS WAN CHAI AND TS IM SHA TSUI.

OFFICE DECENTRALISATION IN THIS LIMITED GEOGRAPHICAL CONTEXT IS, THEREFORE, POSSIBLE.

HOWEVER, THE SCOPE OF AND THE SPEED AT WHICH SUCH DECENTRALISATION TAKES PLACE WILL DEPEND PARTICULARLY UPON THE SUPPLY SITUATION IN CENTRAL IN FUTURE. IN PERIODS WHEN THERE IS A DISTINCT OVERSUPPLY SUCH MOVEMENTS MIGHT BE SLOWED DOWN OR EVEN REVERSED.

ANOTHER POINT EMERGING FROM THE SURVEY IS THAT BANKS, FINANCIAL INSTITUTIONS AND REAL ESTATE-INSURANCE FIRMS TEND TO CONCENTRATE IN THE CENTRAL DISTRICT. ON THE OTHER HAND, A GREATER PROPORTION OF IMPORT-EXPORT FIRMS ARE LOCATED IN THE OTHER OFFICE CENTRES.

THE REPORT ALSO POINTS OUT THAT THE STUDY HAS CERTAIN LIMITATIONS FOR THE FOLLOWING THREE REASONS:

FIRSTLY

SECONDLY

IT IS BASED ON ATTITUDES WHICH MAY CHANGE OVER A FAIRLY SHORT PERIOD OF TIME,

UNLIKE THE CASE OF HARD FACTUAL DATA, SUCH ATTITUDES ARE DIFFICULT TO MEASURE IN PRECISE TERMS AND IN A DIRECT WAY, AND

/THIRDLY -- THE