incomes of
many potential home buyers. In view of the
uncertainty about the general economic situation and in
anticipation of further price falls, potential home buyers
appeared to be reluctant to enter the market. The downward
adjustment of prices and rentals, particularly for flats and
houses at the upper end of the market, continued in the third
quarter.
5.6
On commercial property, the additional supply of
commercial premises, including shops and offices, was
substantial. This, coupled with the high level of vacancy
recorded at the end of 1981, further depressed rents and
prices which have generally been weak over the past year. With the poorer growth performance of the Hong Kong economy generally, the market continued to be dominated by an excess
of supply over demand except for prime offices in central
locations where new supply was limited. Demand for industrial
property was also affected by the poor performance and
uncertain prospects of the export sector. Vacancies remained high especially in the New Territories. With the exception of
space in certain of the older-established
areas, prices and rentals declined further.
5.7
urban industrial
Reflecting the depressed state of the property
market, building intentions declined in the third quarter.
The total usable floor area of all building plans in respect
of which consent to commence work was given, was 718 000
square metres, 19% less than in the third quarter of last
year. For the first nine months, the decline was 13%. Whilst building intentions.
intentions in the residential and commercial sectors
fell, those in the industrial sector increased, probably as a result of the large amount of industrial land sold in the last
two years with building covenants requiring an early start to
construction.
28
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