| Abstract | The sharp surge in the capital values of office properties in the final quarter of 1996 led to an improvement in market sentiment. The large new supply coming on stream in the next two years would, however, put pressure on both prices and rentals. Nevertheless, the expected short-term adjustment of the market would bring long-term benefits to Hong Kong as more competitive office prices and rentals would help attract an increasing number of multinationals as well as the People Republic of China companies to set up operations in the territory. This would create more employment opportunities for local workers, increase demand for office space and further drive the development of Hong Kong as a service centre. Further explanation and analysis are provided in this article. |
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