XN000022-1993-08-27 — Page 6

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FRIDAY, AUGUST 27, 1993

FLAT PRICES SURGED DURING THE

SUCCESS IN DEVELOPERS,

QUARTER. STIMULATED BY THE A NUMBER OF PRE-COMPLETION SALES EXERCISES BY THE MAJOR

THE PRICE GAINS IN PERCENTAGE TERMS WERE GENERALLY GREATER WITH LUXURY FLATS THAN WITH SMALL TO MEDIUM-SIZED FLATS.

RENTALS ALSO RECORDED A STEADY INCREASE.

THE

ON

MARKET SENTIMENT HAD CLEARLY IMPROVED FOLLOWING RESUMPTION SINO-BRITISH TALKS ON HONG KONG'S CONSTITUTIONAL DEVELOPMENT FINANCING ARRANGEMENTS FOR THE NEW AIRPORT.

OF

AND

KEPT

WHILE THE MORTGAGE RATE WAS RELATIVELY LOW AND HAD BEEN UNCHANGED SINCE JULY LAST YEAR, ALONG WITH OTHER RESTRAINTS THE 70% MORTGAGE LENDING CEILING ADOPTED BY THE BANKS WAS STILL IN PLACE.

A

ON OFFICE SPACE, RENTALS FIRMED UP IN THE SECOND QUARTER AMIDST SUSTAINED END-USER DEMAND AND NOTWITHSTANDING A STILL ABUNDANT SUPPLY IN THE MARKET.

PRICES RECORDED MORE SIGNIFICANT INCREASES AS STRATA TITLES PRIME OFFICE PREMISES ATTRACTED CONSIDERABLE INVESTMENT INTEREST.

BOTH SALES

IN

ON SHOPPING SPACE, A RISING DEMAND DUE TO THE STEADY GROWTH IN LOCAL CONSUMER AND TOURIST SPENDINGS DROVE RENTALS UP, AND THE

MARKET FOR RETAIL UNITS WAS ACTIVE.

ON INDUSTRIAL PROPERTY, WHILE THE OVERALL RENTAL SITUATION REMAINED STATIC, THE SALES OF MODERN INDUSTRIAL PREMISES WITH A HIGH PROPORTION OF SPACE ALSO PERMITTED FOR OFFICE USE WERE WELL-RECEIVED.

THE FOLLOWING DEVELOPMENTS WERK

IN THE FINANCIAL SECTOR,

OBSERVED DURING THE FIRST HALF OF 1993.

THE RATE

FIRST, THE MARKET EXCHANGE RATE OF THE HONG KONG DOLLAR AGAINST U.S. DOLLAR REMAINED GENERALLY STABLE UNDER THE LINKED EXCHANGE SYSTEM, MOVING BETWEEN HK$7.722 AND HK$7.757 TO US$1 AND CLOSED THE SECOND QUARTER AT HK$7.749 TO US$1.

HONG

SECONDLY, REFLECTING THE MOVEMENTS OF THE U.S. DOLLAR AGAINST OTHER MAJOR CURRENCIES, THE EFFECTIVE EXCHANGE RATE INDEX OF THE KONG EARLY 112.3.

DOLLAR ROSE FROM 114.2 AT THE END OF DECEMBER 1992 TO 115.3 IN FEBRUARY, BEFORE EASING BACK TO CLOSE THE MONTH OF JUNE AT

APART FROM THE INFLUENCE OF AD HOC EVENTS SUCH AS NEW SHARE LOCAL MONEY MARKET INTEREST RATES GENERALLY MOVED CLOSELY IN WITH THE CORRESPONDING U.S. DOLLAR INTEREST RATES.

ISSUES, LINE

DEPOSIT RATES ADMINISTERED BY THE HONG KONG ASSOCIATION OF BANKS REMAINED UNCHANGED THROUGHOUT THE FIRST HALF OF 1993.

THIRDLY, HONG KONG DOLLAR DEPOSITS RECORDED ONLY A SMALL GROWTH DURING THE SECOND QUARTER, FOLLOWING A LARGE INCREASE DURING THE FIRST QUARTER.

/THE BROADER