Registrar-Generals-Department-Annual-report-1963-1964 — Page 9

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during the year that it was the fashion to start construction only after not less than 70 per cent of the flats had been sold. Under this system it is not surprising that purchasers who have paid their deposits early tend to get restive when nothing happens, and with their example before them flat-purchasers as a whole appear to have become somewhat more cautious and prepared to part with their money only when a start has been made and a firm date for completion has been stated. Notwith- standing this, prices in the smaller-sized flats continued to edge upwards with the rising costs of construction. Since there were only a limited number of people who could afford to pay the full price of a flat within the period of construction many developers, some with the assistance of banks, were offering instalment terms for up to ten years, and there is no doubt that this practice has contributed towards the continued strong demand for small flats.

7. In the past, small and even medium sized flats have been favour- ite speculation counters for investors, who have frequently made very substantial

profits by buying flats during construction and selling them shortly after completion, when both rising land values and increasing construction costs have enhanced the general price level of such flats. During the year, however, although profits could still be made in this way, they were less substantial than previously owing to prices rising more sedately than in recent years. Many small flats are also bought as investments for income purposes.

8. Prices for industrial land were on the whole well maintained in spite of the considerable number of new lots sold by the Crown Lands Office. As mentioned in paragraph 34 the Government announced in December 1963 that the concessionary terms applicable to Kwun Tong industrial lots allowing payment of 90% of the premium by instalments over up to 20 years with interest at 5% per annum would be extended to the new industrial areas at Tsuen Wan and Kwai Chung, and that the premiums for other industrial lots would in future be payable by four equal instalments, interest free, over two years. This announcement was very well received by industrialists.

9. The number of instruments relating to land registered in the Land Office jumped by 8,557 to the new record total of 37,554, the number of assignments rising by 2,721 to 13,274 and that of agreements for sale and purchase by 2,983 to 7,619. The grand total of considera- tions expressed in all instruments rose to the new record figure of $2,912,853,000, $582,000,000 up on 1962-63, with a consequent rise of over $12,000,000 in stamp duty to $42,704,000. For the first time the

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