TNAG-1640-FCO40-2287-Economic-situation-in-Hong-Kong-1987 — Page 11

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in the private sector were in progress, including the new Standard Chartered Bank Building, the new Bank of China Building, Pacific Place and the

International Exhibition Centre. Meanwhile, construction work on the Eastern Harbour Crossing and the Kwai Chung Container Terminal 6 continued.

14.

As regards the public sector, the growth rate of capital expenditure on building and

construction rose from 8% in real terms in the first quarter of 1987 to 15% in the second quarter, compared with a decline of 3% for 1986 as a whole

(Table 1). Major projects in progress included the

Tuen Mun Light Rail System Phase I, the New Territories circular road improvement, the Junk Bay Tunnel, and Route 5 linking Sha Tin with Tsuen Wan. Moreover, expenditure on the public housing programme was maintained at a high level.

15.

For the private and public sectors combined, total expenditure on building and

construction grew by 12% in real terms in the first

quarter of 1987, and by 8% in the second quarter. In 1986, there was zero growth in this capital expenditure (Table 1). The share of capital

expenditure attributable to the private sector was

66% in 1986, compared with 64% in 1985.

16.

(c)

Supply of new property in the

private sector

Care should be exercised in interpreting

the quarterly figures on completions because they

are subject to short-term fluctuations.

Completions of industrial accommodation decreased

CONFIDENTIAL

KING

幽宓