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The Property Market
3. The cost of new building work completed during the year increased sharply from $545m. in 1970-71 to $902m., the highest level since the $1,017m. record set in 1965-66. Owing to the increase in buildings completed, the number of flats vacant in February 1972 when the Commissioner of Rating and Valuation made a survey of the situation was up from 3,453 to 4,203, while the pressure on all classifications of domestic premises as shown by new indices prepared by the Commissioner dropped from 20.18 in 1970 to 18.29 in 1971. The demand for accommodation of most types, however, remained in excess of supply, and the sellers' market of recent years continued to flourish. To help finance the continuing high demand for domestic accommodation, the Government-sponsored Hong Kong Building and Loan Agency Limited in April 1971 again increased its paid-up share capital, by $4m. to $10m., and in October 1971 raised additional finance by the issue of a fifth series of Govern- ment-guaranteed notes to a value of $30m. In addition, members invested in the Agency during the year a total of $5.36m. by way of fixed term loan.
4. The demand for new land, both for industrial and other pur- poses, noted during the two preceding years continued throughout the year under review. Indeed, so great was the demand for land that some lots were selling at public auction at two or three times the upset price. One favourably located hotel or commercial site, for example, at the junction of Harcourt Road and Murray Road within the old Naval Dockyard on Hong Kong Island was sold for $66m. (payable by instalments (including interest at 10% per annum) over ten years), which was the third highest price ever obtained at an auction of Crown land in the Colony. The continuing activity in the property market was also reflected in the increase from 134 to 200 in Exclusion Orders made under the Landlord and Tenant Ordinance, although there was a decrease from 93 to 79 in the number of applica- tions for modifications of Crown lease restrictions, both of which are normally the prelude to re-development.
5. There remain many other new projects in the pipeline, including projects planned in previous years and which developers had as a condition of obtaining an Exclusion Order under the Landlord and Tenant Ordinance undertaken to complete within a specified period,
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