Report for February: Unfavourable General Conditions Fail to Arrest the Building Programme Asking "What of Silver Now?" the report of the Asia Realty Ca. for February, continues: we put the question, but who will attempt to answer? Ask of the economist, of the banker, of the broker, of the business man. Many factors may come to silver's support: a certain falling off in production, new uses for cheaper silver, revival of trade in China, the further use of the metal to' support Chinese currency issues, relief from the continual dumping of silver into China.
Not only has exchange reached the lowest level in Shanghai's history, but the price of silver it seems is at the lowest it has ever reached. It is raising the cost of living by leaps and bounds; it has stopped imports, and holds cargo in Shanghai godowns. Although the Cusr toms. has placed import duties on a gold basis, it is cor entirely impractical for the Government to think of a gold basis at the present time, The situation, while very try! is not yet critical.
Tt may be that those who see support for will be right and that exchange come back, or at least steady itself fat a new normal to which we may adjust our affairs.
With the accumulation of silver in Shanghai comes the question of how to invest it It is common Knowledge, evidenced in all parts of this growing city, that large sums are making their way directly Into land and real estate development, and indirectly into the same sort "of investment through real estate shares and debentures.
Already real estate begins seriously to take note of its value in terms of the depreciated metal. It is now quite the usual thing for a prospect seller to raise the asking price on his property by a margin Sufficient to cover the silver drop of the past few months. While we all have to expect owners generally to think of their property values in gold, and arrange thei prices accordingly, the increased demand for real' estate is also the cost of land in a marked manner. One prominent real estate operator gave it as his opinion that in the Bubbling Well Road district land had increased in price at least 20 per cent. in the past eight or ten months. With that oj there is general concurrence. fact it is quite unsafe to quote on prices listed several months ago. We know of one property along North Szechuen Rond assessed at Tls. 30,000.00 per mow for whi an offer of Tls. 125,000.00 per mow was recently rejected by the owner, a leading yon! estate company. Undoubtedly the demand for land is the basic cause of upward! prices; but cheap silver is the second main In the past years it has been found that January and February fare slow months in real estate trading. The Chinese New Year celebration, as well as the foreign holiday season, with the attendant business of settling accounts, explains much of this slowness." The best real estate months are March, April, May, June, September, Oct der and November." There have nevertheless been quite a number of transactions for February.
It is reported that the premises of the Lusitano Club in the North-fern district were sold at -approxim: ately Tls. 100,000. per mow. Central district. property at Jinkee ait! Yuen Ming Yuen Roads brought 200,000. per mow. Another Central district property at Canton and Szechuen Roads.was sold for over Tis, 350,000. In the Western ret a property at the corner of nue Fock and Moulmein Road changed hands at Tls. 30,000. per proximately. Farther West sale is reported at the corner of Avenue Foch and Hart Road involving some two lakhs.
For _severa} months past there has been strong demand for large foreign residences, at from Tls. 50,- 000,'to Tls. 200,000. or so. A dozen or more nice' places have changed hands. And still the demand tinues. At the present writing] there Are buyers for properties: at say Tls. 100,000. which Shanghai able to satisfy. One Western district, a fine residence with several mow of ground, brought approximately one! fakh. There were numerous smaller! deals, particularly in the residential districts, foreign houses and building sites. Great Western Road is showing increased activity as a residential district.
Text read from the printed page and cleaned; old type leaves the occasional error.