XN000022-1994-11-11 — Page 11

FRIDAY, NOVEMBER 11, 1994

"FOR A VARIETY OF REASONS, HONG KONG

REMAINS ATTRACTIVE TO FOREIGN INVESTORS. NOT TOO LONG AGO, HONG KONG WAS NAMED THE FOURTH MOST COMPETITIVE ECONOMY IN THE WORLD BY THE WORLD ECONOMIC FORUM.

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"MORE RECENTLY, THE FORTUNE MAGAZINE NOMINATED HONG KONG AS THE MOST ATTRACTIVE COMMERCIAL CENTRE IN THE WORLD, MR EASON SAID, "WHILE WE SHOULD NOT BE COMPLACENT, THERE IS AT THE SAME TIME NO NEED FOR PANIC MEASURES.

ON

THE SUPPLY OF OFFICE ACCOMMODATION, THE REVIEW SHOWS THAT OVERALL SUPPLY IS FORECAST TO INCREASE AT AN ANNUAL RATE OF SIX SEVEN PER CENT BETWEEN 1994 AND 1996.

IN

TO

ADDITION, OVER 2.3 MILLION SQUARE METRES OF OFFICE SPACE IN COMPOSITE INDUSTRIAL/OFFICE BUILDINGS WILL COME ON STREAM OVER THE NEXT FEW YEARS.

THE SUPPLY OF HIGH QUALITY GRADE A OFFICE ACCOMMODATION IN CENTRAL DISTRICT WILL BE TIGHT IN THE NEXT TWO YEARS.

BUT, THE SITUATION WILL IMPROVE GREATLY WITH THE REDEVELOPMENT OF HILTON HOTEL AND NEW DEVELOPMENT ON THE CENTRAL AND WAN CHAI RECLAMATION, WHICH TOGETHER WILL PRODUCE ABOUT 700,000 SQUARE METRES OF GOOD QUALITY OFFICE ACCOMMODATION BETWEEN 1997 AND 2001.

STATISTICS ON SHORT-TERM RESALE OF OFFICE PREMISES SUGGEST THAT THERE HAS BEEN SOME SPECULATION IN OFFICE TRANSACTIONS.

HOWEVER,

THE SCOPE FOR SPECULATION IN GRADE A OFFICES IS LIMITED BY THE FACT THAT SUCH HIGH QUALITY ACCOMMODATION IS PREDOMINANTLY OWNED BY DEVELOPERS FOR RENTAL PURPOSES.

THE AMPLE SUPPLY OF GRADE B AND ( OFFICES COMING ON IN THE NEXT

FEW YEARS WILL ALSO PROVIDE A CHECK ON SPECULATION.

NEVERTHELESS, THE ADMINISTRATION WILL MONITOR AND ASSESS THE SITUATION CONTINUOUSLY SO AS TO ENSURE A REASONABLE BALANCE BETWEEN DEMAND AND SUPPLY.

THE

TO INCREASE THE ADMINISTRATION'S RESPONSIVENESS TO. CHANGES TN MARKET SITUATION, THE WORKING GROUP HAS RECOMMENDED THAT THE INFORMATION AND MONITORING SYSTEM AND THE LAND RESERVE PROPOSED FOR THE RESIDENTIAL PROPERTY MARKET SHOULD BE EXTENDED TO COVER THE OFFICE MARKET.

THE GOVERNMENT IN CENTRAL

COPIES OF THE REVIEW REPORT ARE AVAILABLE AT PUBLICATIONS CENTRE IN THE GENERAL POST OFFICE BUILDING DISTRICT.

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