Squeeze play
Article Abstract:
There will be 7.7 million square feet of empty office space in Hong Kong in 1998, which is twice the normal office space available to rent. Rent on retail units are also between 15%-20% less than June 1997 and shopkeepers are campaigning to have rents reduced because of the downturn in consumer spending. Property companies will be the worst hit by the slump because they need income from rented property to pay their debts. Small developers could go out of business but larger ones will be secure as they only have a debt-to-equity average of 30%.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1998
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Land's end
Article Abstract:
Hong Kong has a shortage of housing and prices are rising too fast for young couples to be able to purchase their own homes. Hong Kong's chief executive, Tung Chee-hwa, plans to announce measures to tackle the crisis in fall 1997, and the measures are likely to involve boosting the supply of homes rather than simple price controls. Tung has to be careful not to cause a sharp drop in prices since the real estate industry accounts for much of government revenue.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1997
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