The Property Market
3. The cost of new building work completed during the year increased to $545m. as compared with $482m. in 1969–70. The decline for the four previous years in succession was thus reversed, but the figure was still the second lowest yearly total since the $1,017m. record set in 1965–66. The demand for accommodation of most types accordingly remained in excess of the supply, and the sellers' market of the preceding year con- tinued to flourish. To help finance the continuing high demand for domes- tic accommodation, the Government-sponsored Hong Kong Building and Loan Agency Limited in May 1970 increased its paid up share capital by $4m. to $6m., and in October 1970 raised additional finance by the issue of a fourth series of Government-guaranteed notes to a total value of $7m. In addition, four of the founder members reinvested in the Agency a total of $6m. during the year. Owing to the increase in new buildings completed, the number of flats vacant in Januray 1971 when the Commissioner of Rating and Valuation made a survey of the situation was up from 2,439 to 3,453, still the second lowest figure recorded for eight years, while the average period premises remained empty follow- ing the issue of an Occupation Permit dropped slightly from 1.91 months at the previous survey to 1.84 months.
4. There was a continuation of the previous year's sharp revival in the market for new land, both for industrial and other purposes. The number of agreements for the sale or grant of Crown land was up from 185 to 230, there being 57 sales by auction or tender, 48 private treaty grants and 91 regrants of lots previously held on 75-year leases, as com- pared with 70, 31 and 60 respectively in the previous year. So great was the demand for land that some lots were selling at public auction at two or three times the upset price, while one choice hotel or commercial site off Connaught Road, Central, on Hong Kong Island was sold for $258m. (payable by interest-free instalments over ten years), which was by far the highest price ever obtained at an auction of Crown land in the Colony. The heightened activity was also reflected in the increase from 34 to 134 in Exclusion Orders made under the Landlord and Tenant Ordinance, and in the increase from 60 to 93 in the number of applications for modifica- tions of Crown lease restrictions, both of which are normally the prelude to redevelopment.
5. There were also many other new projects in the pipeline, including projects planned in previous years and which developers had as a con- dition of obtaining an Exclusion Order under the Landlord and Tenant
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