TNAG-2127-FCO40-3037-Investment-in-Hong-Kong-1990 — Page 9

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

G.F. 326

-

7

--

! mera?

Investment in property

(all growth rates quoted in this section are on a year-on-year comparison and are expressed in real terms, unless otherwise indicated)

10.

(a) General situation

in

The property market remained generally active in the third quarter of 1990. Prices and

rentals

of small to medium-sized flats rose

further, while those of large flats and shopping

space

prime locations stayed firm. Prices and

rentals of office and factory space, however,

remained soft.

Market sentiment in the

residential market was supported by the recent

reductions in mortgage rate (by half of a percentage point in August and by another half of percentage point in October) and reportedly also by the home purchase schemes for civil servants.

a

11.

The

residential

property

market

continued to show a good performance during the third quarter. Pre-completion sales of flats were generally well received. Small to medium-sized

flats continued to be in strong demand. There was

also

pick-up a

in demand for large flats in

favourable locations.

12.

the

The situation for commercial property in

third quarter was similar to that in the

preceding quarter.

Demand was firm in the popular

shopping areas. On the other hand, the demand for

only moderate, against an

office space

was

abundant supply

from new office

developments

completed recently.

CONFIDENTIAL #3

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