15
28.
Investment in property tends to be cyclical
in nature. In the first half of 1986, trading in the
property market remained fairly active, but there are
signs that the market for some categories of property
has entered a period of consolidation. Prices and
rentals for most types of property were relatively
firm, perhaps with the exception of larger residential
flats where supply has appeared to be quite abundant
relative to demand in the past months. Completions of
new property in the first half of 1986 were generally
lower than a year earlier. Expenditure on building
and construction probably showed decline over this
period.
$
29.
The forecast growth rate of private sector
expenditure on building and construction (including
civil engineering) is thus revised downwards to 2%,
from the budget forecast of 6%. This largely reflects
the later than expected commencement of works related
to the Eastern Harbour Crossing. Public sector
expenditure on building and construction. is expected
to decline by 7%, compared with the budget forecast of
a growth of 3%. Taking all these changes together,
gross domestic fixed capital formation is expected to
grow by only one percent compared with the budget
forecast of 3%.
/30. Consistent
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