3
(ii) Small and Medium Flats:
The position here is similar to that
of tenement floors; but in these categories the majority of tenants would not be eligible for Government or Government-aided housing. With the main shortage in large flats the burden of rent increases is now being felt in these groups. The pressure on these middle income tenants is likely to continue during 1970.
(iii) Large Flats: Rent increases are pronounced in this Category. Increases of rent were reported early in 1969 and heavier increases have become apparent during the year. This results from a shortage of supply and an influx of new business houses to Hong Kong requiring accommodation for staff. The situation is not likely to ease until well into 1971.
B.
Business Premises
(i) Shops: Here again it is fairly clear from the index that rents, although now on an upward trend still are generally below the 1964 peak. At the end of September there were on vacant tenement registers some 160 shops and this figure does not take account of recently completed buildings.
(ii) Offices: The index, which comprises a good number of cases, clearly shows the picture as we understand it. While vacant offices are now fast filling up in central areas rents, for most of the year, have followed a downward trend and, for secondary buildings and others outside the true centre, are well below the levels of recent years. The index shows rent at about 75% of 1964 and about 8 per cent below 1968. In the central area, landlords of first-class buildings generally follow a conser- vative policy and rents for such buildings, which have changed little in recent years, are now showing an upward trend as the supply diminishes. However, there still is a fair amount of secondary accommodation available in off-centre positions and no real shortage is foreseen. In respect of premises assessed to rates there were at the end of September some 228,000 sq.ft. vacant and this figure does not take account of recently completed buildings; the full position will be known when a comprehensive survey has been carried out next month.
(iii) Flatted Factories: As is illustrated in Annexe 'B', the position in this category is possibly the most serious. It is not really surprising that the position here is bad as the lack of supply was noted in a survey carried out by the department in January 1969. At that time the supply available for renting or sale was equal to about one month's average demand. A further survey of flatted factories will be undertaken by the department in January 1970. Meanwhile the following figures may help to illustrate the position:
/Vacant 1.4.1964