In Hong Kong, where accomodation is an ever-pressing problem, many new flats are built only to remain empty for long periods. In the following article, taken from a paper prepared by the Rating and Valuation Depart- ment, it is pointed out that this apparent over-supply is not peculiar to the Colony. Comprehensive facts and figures are given in an attempt to clarify the local position and give the reason why.
99.2
THERE ARE THOUSANDS OF EMPTY FLATS IN HONG KONG
T
HE money spent by private de- velopers оп new buildings in Hong Kong Island, Kowloon and New Kowloon for the five years from 1950 averaged $100 million per year: for the next five years it averaged $210 million and over the last four years $404 million a year,
new
This extensive building programme has resulted in many new buildings not being occupied right away. There are many reasons for this, but as the need for housing is a press- ing
one. empty premises in buildings have been a subject of vary- ing degrees of adverse comment since 1950. The number of empty pre- mises can be misconstrued, for pre- mises nearing completion but not quite ready are sometimes regarded as empty and so unfairly swell the total, while the quantity added fluctu- ates greatly from time to time, for example, 955 new premises in April 1963 and 2,945 in February 1964 (see para. 8).
lene-
The Rating and Valuation Depart- ment has maintained vacant ment registers of those premises as- sessed to rates which are vacant and in respect of which owners may claim refunds of rates, but as there is delay between completion of new buildings and assessment to rates,
the registers do not give a full up-to- date picture about vacancies.
Το remedy this deficiency each year from 1956 onwards a special survey has been conducted around the end of March to find out the oc- cupancy position in all new domestic buildings for which occupation cer- tificates had been granted up to the end of the preceding February. though it is not always possible to make a clear distinction between domestic and other uses.
The ninth annual review was made between 23 and 31 March 1964 and included premises not yet assessed to rates which had become available for occupation up to 29 February, 1964. Vacancies are reckoned in months according to the time of in- spection in relation to the month (and not the precise date) in which the occupation permit was issued. For example. no distinction in the length of time vacant is drawn be- tween prenises found vacant at the end of March whether the occupa- tion permit was issued early or late in a preceding month. These special surveys provide much information as they cover most of the new build- ing completed in the previous 12 months or so and are thus much more than a mere sample of recent building.
31
to
The proportion included in special survey varies according the progress made in rating valua-
tion work, and as the vacancies ob- tained in this way would understate the total unoccupied, the figures from the vacant tenement registers, suit- ably pruned to disregard items like
Area
Hong Kong Island
Kowloon
New Kowloon
empty buildings awaiting demolition and those not domestic, are added to it. The various figures are also cross- checked and adjusted in an en- deavour to clear all duplications and inconsistencies.
The special survey does not extend to Housing Authority. Housing So- ciety, Government Low-Cost Housing and Resettlement Buildings and none of these categories is on the vacant tenenient registers.
re-
this One significant feature of year's special review is the very large number of floors/units inspected which far exceeded all previous views and at 16,558 was 94% up on a year ago (8,527), while those found vacant increased from 2,947 to 7,231 or by 145%. But almost one-third (that is, 5,480) of all the floors in- spected became available in the last two months of the year being review- ed, that is, during January and February 1964,
The fluctuations in the number of inspections and vacancies over the three main areas compared with a year earlier are:
1963
Inspections
1964
% increase
1963
Vacancies
1964
% increase
4,370 5,020
3.015 6.986
15% 1.199 2,110
132% 1,258
1,142 4,552 299%
490
76%
3,075
144%
2.046
318%
8,527 16,558 94% 2,947
7,231
145%
824 54%
Grand Totals
3,483
8,055 131%
From Vacant Tenement Registers 536
90
THE HONG KONG & FAR EAST BUILDER-VOLUME 19, NUMBER 2