economy but, in addition, a shift in demand can be established
from the renting to the ownership of commercial and office
premises, freehold and for one's own use. Preference mostly is
for land situated on the edge of the built-up area with ample
parking facilities and good public transport to the centre.
Against the small demand there is a decreasing supply now that
nearly every developer adopts a conservative policy in imple
menting new projects in this sector. This results in a gradual
decrease in the non-occupancy of modern and well-equipped
spaces. The consequence of this is a strongly reduced supply of
well-tenanted objects and a corresponding increase in prices,
which forces investors to be satisfied with a low initial yield.
Availing ourselves of this favourable development in the sale of
commercial and office premises, we have reduced our interest in
this sector by selling objects at Assen, Utrecht, The Hague,
Reeuwijk and Ede. These sales were offset by purchases at
Amsterdam, Heerlen and Arnhem.
In the house-building sector the production of high-quality
dwellings is insufficient. Notably the increased demand for types
of houses which offer more comfort and privacy, such as very
luxurious flats in which the safety aspect plays an important part,
as well as bungalows and country-houses with relatively little
upkeep of house and garden, meets with inadequate supply,
which has led to a strong increase in prices in this sector. The
gap between supply and demand that has arisen as a result of a
greater preference for houses for owner-occupation, on the one
hand, and the lagging behind of the new construction of high-
quality dwellings, on the other, is filled to a considerable extent
by many investors being willing to sell rented houses to tenants
as a result of the small yield potentialities in case of continued
operation. In so far as these investors themselves are not
equipped for such individual sales, the intermediate trade fulfils a
function here. Where housing of good quality is concerned and
the user is able to form an independent judgement on the desir
ability of purchase, such a development is quite acceptable.
However, the fact that, encouraged by the good sales oppor
tunities, many non-professional entrepreneurs have entered this
field, should be regarded with disfavour.
It is to be welcomed that this price development has stabilised
somewhat, partly because financiers prove unwilling to simply
follow price developments in their finance activities.
The construction of our objects in the Netherlands and in
Belgium proceeded according to plan. The projects nearing com
pletion at The Hague, Eindhoven and Bolnes have almost com
pletely been sold. The sale of the apartments under construction
in Belgium is also proceeding satisfactorily. In the De Haan
project a show-house was opened in December 1977.
With the completion of the Gildenkwartier in 1977 the develop
ment of the Hoog Catharijne shopping and office centre was
concluded. Of the original Hoog Catharijne plan at Utrecht only
the block of offices on Leidseveer remains to be implemented. In
1979 a start will be made with the construction of this project,
which technically and economically is to be regarded as
an independent unit. In the Gildenkwartier the shopping area
- entirely let - opened in September 1977.
The whole of the office area measuring 30,000 sq.m, of gross
floor surface was sold.
The in 1971 completed office premises off Croeselaan were
sold to Verenigde Bedrijven Bredero nv, who already
occupied a considerable part 35 of these premises as
