XN000022-1994-08-15 — Page 4

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MONDAY, AUGUST 15, 1994

LBAC DISCUSSES PROPERTY MARKET SITUATION

THE LAND

* * * *

AND BUILDING ADVISORY COMMITTEE (LBAC) WAS BRIEFED TODAY (MONDAY) ON THE PROGRESS ON THE IMPLEMENTATION OF THE RECOMMENDATIONS BY THE TASK FORCE ON LAND SUPPLY AND PROPERTY WHICH SOUGHT TO COOL OFF THE PROPERTY MARKET.

PRICES,

THAT

THE COMMITTEE, CHAIRED BY MR CHENG HON-KWAN, WAS INFORMED SINCE THE TASK FORCE'S RECOMMENDED MEASURES WERE ANNOUNCED IN JUNE, PROPERTY AGENTS REPORTED THAT THE VOLUME OF TRANSACTIONS HAD DECREASED BY ABOUT 50%-60% WITH PRICES REPORTED TO HAVE DROPPED BY 5%-10%.

THE COMMITTEE AGREED WITH THE RECOMMENDATIONS WHICH SHOULD BE IMPLEMENTED AS SOON AS POSSIBLE.

AS REGARDS DEMAND AND SUPPLY, MEMBERS ADVISED THAT THE INFORMATION USED IN FORECASTING AND MONITORING HOUSING DEVELOPMENT SHOULD BE ACCURATE AND TIMELY.

BY

DURING THE MEETING, MEMBERS ALSO DISCUSSED THE REPORT ON THE PROPERTY MARKET FOR THE PERIOD JANUARY 1 TO JUNE 30, 1994 PREPARED THE LANDS DEPARTMENT.

THE MARKET FOR THE INITIAL PART OF THE YEAR WAS CHARACTERISED BY VERY STRONG BUYING INTEREST AND HIGH LEVEL OF ACTIVITIES, PUSHING PRICES UP BY ABOUT 30%-35% IN THE MASS RESIDENTIAL MARKET AND 35%-40% IN THE LUXURY MARKET.

MOST ANALYSTS ATTRIBUTED THE ESCALATING PROPERTY PRICES PARTICULARLY IN THE RESIDENTIAL SECTOR TO SPECULATION BY "CASH-RICH" OVERSEAS INVESTORS, SPECIAL FINANCING ARRANGEMENTS OFFERED BY DEVELOPERS AND "SPECULATIVE HOARDING" ACTIVITIES.

STATEMENTS FOR

MEMBERS WERE ALSO BRIEFED ON THE DEVELOPMENT WEST KOWLOON, SOUTH EAST KOWLOON AND TSUEN WAN - KWAI TSING.

-

592,000

THE

COMMITTEE NOTED THAT THE TOTAL POPULATION OF WEST KOWLOON WAS ENVISAGED TO DECREASE FROM 648,000 IN 1991 TO ABOUT

IN 2001, WITH THE LARGEST DECREASE IN MONG KOK AND CHEUNG SHA WAN, TWO MOST DENSELY POPULATED DISTRICTS IN THE TERRITORY.

THE

THE CLOSURE OF THE EXISTING KAI TAK AIRPORT AND THE KOWLOON BAY

WILL RECLAMATION

MAKE 580 HECTARES OF LAND AVAILABLE FOR NEW DEVELOPMENT IN SOUTH EAST KOWLOON BY 2010.

MEMBERS COMMENTED THAT IT WAS IMPORTANT INTENSITY OF DEVELOPMENT WITH THE INFRASTRUCTURAL RELAYED FACILITIES AVAILABLE.

TO BALANCE THE PARAMETERS AND

THEY

THE DEVELOPMENT STATEMENTS SERVE AS A BASIS FOR THE PREPARATION OR REVISION OF THE RELEVANT OUTLINE ZONING PLANS AND TOWN PLANS. ALSO PROVIDE A FRAMEWORK FOR DETAILED PLANNING AND PROGRAMMING FOR THE DESIGNATED DEVELOPMENT OR REDEVELOPMENT AREAS.

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