TNAG-1951-FCO40-2779-British-capital-investment-in-Hong-Kong-1989 — Page 84

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13.

Demand for industrial property continued to consolidate in the third quarter. Meanwhile, largely reflecting the further expansion in entrepôt trade, the demand for storage premises was sustained.

14.

Caution should be exercised in interpreting the figures on investment in property, in view of the time taken to complete projects. Capital expenditure

is measured at the time the construction work is

undertaken, while consents to commence work are given

before the work starts, i.e. before any significant expenditure has actually been incurred, and completions are recorded after all work is finished. For most projects, it is likely that the highest

level of expenditure falls in a year other than that in which consent is given or that in which the

project is completed.

15.

(b) Capital expenditure on

building and construction

According to the latest quarterly estimates of the GDP, expenditure on building and construction in the public sector (including the Mass Transit Railway Corporation and Kowloon-Canton Railway Corporation) grew by 5% in the second quarter of 1989, while that in the private sector grew by 1%.

Taken together, overall expenditure on building and

construction rose by 3% in the second quarter,

following an increase of 4% in the first quarter

(Table 1).

G.F. 326

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