TNAG-1267-FCO40-1616-Economic-situation-in-Hong-Kong-1983 — Page 275

uch stimulus to retail trade. As a result, the demand for

shop space was generally weak, although attractive terms, such

as rent-free periods for fitting-out, were often offered by

developers. Shop space in prime locations, however, continued to have a high occupancy rate. Except perhaps for shops in prime locations, prices and rentals declined further during

the first half of 1983. The situation was similar for

offices. Apart from some of those in prime locations and with

good management, the market for offices was largely in the favour of buyers and tenants, with prices and rentals easing

further in the first half of this year. Despite a high take-up rate in absolute terms in 1982, it appears that the

vacancy rate continued to rise in the first half of 1983, especially for offices in Wan Chai and Tsim Sha Tsui.

The additional supply

5.9

(7) of industrial property

in terms of usable floor area completed, was 27% lower in the

first half of this year than in the same period last year.

Much of the new supply continued to be in the New

Territories. In 1982, the economic recession resulted in the

lowest take-up of space in six years. The current revival in

manufacturing activity has

has not yet resulted in a

resulted in a substantial

increase in demand for industrial space. Reflecting the weak

demand, some industrial building projects have been delayed,

altered or cancelled. The forecast of flatted factory

completions in 1983, made at the end of 1982, was 734 100 square metres, which was much less than the previous forecast of 1 765 600 square metres, made at the end of 1981. Prices and rentals of industrial premises eased further in the first

half of 1983.

/5.10 Planned

(7) Industrial property is defined to include flatted factories,

specialised factory buildings and storage premises.

47