TNAG-1483-FCO40-2037-Economic-situation-in-Hong-Kong-1986 — Page 237

and

to

Increased housing needs resulting from natural population

growth

rising aspirations

home-ownership, improved

economic performance,

(6) and declining mortgage rates

believed to have contributed to the strong demand for this class of property.

were

5.9

The market

flats

(7),

good

for medium-sized residential

particularly those in convenient locations and with

facilities, also held steady in the first half of this year.

Both rentals and prices for these flats stabilised during this

period.

(8)

5.10

Sales of large

large residential units

were good for

most of 1985, but

but demand started to ease off towards the

year-end and this trend continued into the first half of

1986. Prices for large units have shown signs of some

decline, but rentals appear to have increased slightly.

(6)

/5.11

Mortgage rates and monthly payment

Mortgage rates (%) charged by principal banks in Hong Kong

Monthly payment ($) on $100,000 mortgage loan with mortgage period of

7 years 10 years

*20 years

14 Jan 1985

12.0

1,765

1,435

1,101

28 Jan 1985

11.5

1,739

1,406

1,066

1 Apr 1985

11.0

1,712

1,378

1,032

22 Apr 1985

10.5

1,686

1,349

998

6 May 1985

10.0

1,660

1,322

965

20 May 1985

9.5

1,634

1,294

932

24 Jun 1985

9.0

1,609

1,267

900

15 Jul 1985

8.0

1,559

1,213

836

2 Sep 1985

8.25

1,571

1,227

852

1 Apr 1986

9.25

1,622

1,280

916

12 May 1986

8.75

1,596

1,253

884

Note: *

These figures are based on equal monthly repayments. A number of financial institutions have offered 20-year loans on this basis.

(7)

Of size between 70 and 99.9 square metres.

(8)

Of size 100 square metres and over.

43