XN000022-1986-02-03 — Page 4

MONDAY, FEBRUARY 3, 1986

3

PROPERTY MARKET HEALTHY, SAYS LAND AGENT

*****

THE PROPERTY MARKET IS NOW HEALTHY AND POSITIVE AND SUBSTANTIAL INVESTMENTS ARE BEING MADE IN VARIOUS DEVELOPMENTS WHICH SIGNIFY LONG-TERM CONFIDENCE IN HONG KONG.

THIS WAS SAID TODAY BY THE GOVERNMENT LAND AGENT, MR BOB POPE, IN A SPEECH TO THE ROTARY CLUB OF VICTORIA,

HE LISTED AS EXAMPLES THE 6TH KWAI CHUNG CONTAINER TERMINAL, THE SITE OF THE CHINA PASSENGER FERRY TERMINAL AT CANTON ROAD, ANOTHER SITE AT CANTON ROAD PURCHASED BY THE AW SIAN GROUP AND THE SITE AT VICTORIA BARRACKS PURCHASED BY MESSRS, SWIRE PROPERTIES, WHO WERE ALSO INTERESTED IN OBTAINING THE ADJOINING SITE WHICH WOULD PROBABLY BE OFFERED FOR AUCTION IN MAY.

+ AM PLEASED TO SAY, AS AN AUCTIONEER OF GOVERNMENT LAND, THAT WE HAVE HAD A 100 PER CENT SALES RECORD FOR ALL SITES OFFERED FOR AUCTION,

+ADMITTEDLY TWO PURCHASERS DID NOT SUBSEQUENTLY COMPLETE, BUT THESE ARE BEING OFFERED FOR RESALE AND I SEE NO DIFFICULTY IN RESELLING THEM, ALTHOUGH AT POSSIBLY MORE SENSIBLE PRICES,+ HE SAID.

ON RESIDENTIAL ACCOMMODATION MB POPE SAID THE DEMAND HAD BEEN +TREMENDOUS+.

THE LAND OFFICE HAD REGISTERED SOME 54 000 SALES AGREEMENTS WHICH WAS AN 80 PER CENT INCREASE OVER THOSE REGISTERED LAST YEAR.

THIS WAS LARGELY DUE TO A 30 PER CENT INCREASE IN SUPPLY AND IT WAS EXPECTED THAT PRICES WOULD REMAIN STEADY OVER THE NEXT YEAR, PARTICULARLY AS THERE WERE MANY LARGE PROJECTS STILL UNDER CONSTRUCTION SUCH AS WHAMPOA GARDENS, KORNHILL AND HENG FA CHUEN.

+THERE WERE SIGNS IN THE MIDDLE OF THE YEAR THAT SPECULATION WAS EMERGING AND QUEUES OF INTENDING PURCHASERS WERE QUITE COMMON, MR POPE SAID.

+THIS WORRIED GOVERNMENT SO MUCH THAT THERE WAS TALK OF LEGISLATION BEING ENACTED TO CONTROL SPECULATION.

HOWEVER, BY THE END OF THE YEAR, IT WAS QUITE APPARENT THAT THE SPECULATION WAS SHORT-LIVED AND MANY DEVELOPERS TOOK A REASONABLE ATTITUDE AND INTRODUCED A BALLOT SYSTEM OF FLAT ALLOCATION RATHER THAN A QUEUING SYSTEM.

GOVERNMENT WAS ALSO CONSIDERING RAISING THE DEPOSIT NECESSARY TO RESERVE FLATS WHICH WOULD AGAIN DETER SPECULATORS, HE SAID,

/THE LUXURY