XN000022-1996-02-12 — Page 7

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Members were also briefed by the Lands Department on the property market in the second half of 1995. They noted that price cutting sales tactics by developers predominated during the third quarter of 1995 with a number of developments being marked at prices below prevailing secondary market.

Such price cutting for new developments had inevitably led to a slowdown in sales and further price falls in the secondary market.

At the start of the fourth quarter, however, there were signs that the market had stabilised. Prices for later phases of developments were higher than earlier releases. There were reports that in some areas prices in the secondary market started to rise slightly.

Regarding the office market, companies in general seemed to have been looking to cutting costs. This had resulted in a continuing trend to decentralise, either all office operations or at least those functions which did not require central locations.

In general, prices appeared to have dropped 30 to 40 per cent from the peak in mid 1994.

However, the outlook of the property market was better than six months ago.

LBAC was chaired by Mr Cheng Hon-kwan.

End

$3 million grant to Oxfam approved

The Disaster Relief Fund Advisory Committee has today (Monday) approved a grant of $3 million to Oxfam Hong Kong as a contribution to Oxfam's emergency relief programme for the earthquake victims in Lijiang and Zhongdian, Yunnan, China.

This is the second grant for the purpose from the Disaster Relief Fund. The first being a grant of $4.195 million to Hong Kong Red Cross.

To ensure that the money will be used for the designated purpose, the Hong Kong Government will require Oxfam to submit an evaluation report and an audited account on the use of the grant.