| Abstract | The office rental cycle is close to its lowest point in Hong Kong and is likely to pick up again in the fourth quarter in 1996, with the latest micro-economic indicators favouring increased transactions in office properties. A shortage of grade A offices, caused by the growth in the personnel-intensive services sector, should result in higher rental prices. Banks appear keen to use accumulated deposits to fund mortgage loans to grade A office buyers, according to Salomon Brothers' Michael Green. Meanwhile, fewer transactions are expected in the residential property market over the next two to three months, as such properties command higher prices than potential buyers are prepared to pay. |
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