per square foot for land including site formation, piling and engineering costs, but excluding land to be occupied by schools, playgrounds, roads etc.), amortized over 40 years at a rate of 34% compound interest a year, plus all annually recurrent expenditure including the cost of ad- ministration and maintenance. Rents are worked out in respect of a particular Mark of block, on the basis of contract prices for the earliest ones to be constructed, and apply to all blocks of that Mark irrespective of location and date of construction. They are liable to revision from time to time in the light of rising costs for maintenance and management. Except where the rateable value of the accommodation is below the minimum at which rates are charged, there is an additional element for rates which is collected with the rent. This amounts to about 17% of the rateable value in urban areas and 11% in the New Territories. A further charge is made for water, varying according to the size of the room, except in the latest Mark IV domestic rooms, restaurants, factories and certain types of shops where individual meters have been installed and the tenant pays according to the amount of water consumed. The all-in monthly charge for the tenant of a standard room of 129 square feet plus a balcony in a Mark IV block in the urban areas is $26 for rent, $6 for rates and $3 for water (unless metered), a total of $35. Rents in Mark I and II blocks, which were worked out in 1954 and revised in 1965, are considerably lower, as might be expected in view of the simpler type of accommodation. In these blocks, only the largest rooms attract rates, and for the standard room of 120 square feet the all-in charge is $18 a month, made up of $15 rent and $3 for water.
137. Shop and workshop rents in estates are determined by the size and location of the premises. There are four grades based on location, and shops enjoying the best trading situations adjoining main roads or hawker markets are charged more than those less advantageously placed. Shop units in the Mark I and II estates range in size from 120 to 310 square feet; the rent of a shop of 120 square feet varies from $40 to $100 depending on the grade. The rent includes an element for rates and water charges. As with domestic rooms, Mark III and IV estate shop rents are higher, a Grade A shop of 120 square feet in the urban area being charged $124.50 a month (including rates and water). Workshops are usually in the lowest grade as they are in locations least suitable for retail trade.
138. Rents for units in resettlement factories are calculated on a cost basis, as with domestic rooms, but the capital cost includes the full upset price that would be set if the land were put up for sale by public
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