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FRIDAY, NOVEMBER 21, 1975
BACKGROUND RENT REPORT ON SALE
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A BACKGROUND REPORT ON TENURE AND RENT RESTRICTIONS COVERING BOTH PRE-WAR AND POST-WAR PREMISES IN HONG KONG IS NOW ON SALE.
THE REPORT, PREPARED BY THE RATING AND VALUATION DEPARTMENT, PROVIDES A BRIEF SUMMARY OF THE HISTORY OF RENT CONTROLS, EXPLAINS THE PRESENT POSITION AND INCORPORATES INFORMATION FROM A SURVEY OF PRE-WAR PREMISES CARRIED OUT BY THE DEPARTMENT IN 1974.
THE COMMISSIONER OF RATING AND VALUATION, MR. RAYMOND FRY, EXPLAINED THAT THE REPORT WAS AN ABRIDGED VERSION OF THE TWO UNPUBLISHED REPORTS PRODUCED EARLIER THIS YEAR TO ASSIST THE GOVERMENT IN DETERMINING ITS FUTURE POLICY ON RENT CONTROL.
+THE INFORMATION INCLUDED AND TABULATED, THEREFORE, IS THAT WHICH IT WAS CONSIDERED ESSENTIAL FOR THIS PURPOSE, BEARING IN MIND THE LIMITATION OF RESOURCES,+ HE SAID.
*
THE MAIN FEATURES OF THE SURVEY ON PRE-WAR PREMISES ARE THAT:
ONLY 14.5% OF TENEMENT BUILDINGS ARE CONSIDERED TO BE FULLY UP TO POST-WAR STANDARDS OF PLANNING, STRUCTURE, HEALTH REQUIREMENTS AND SO ON OR COULD BE BROUGHT UP TO SUCH STANDARD WITH MINIMAL REPAIRS/ALTERATIONS.
*
JUST OVER 70% OF THE RENTS BEING PAID FOR TENEMENT FLOORS WERE CONSIDERED TO BE CLOSE TO, OR NOT TOO FAR ABOVE, THE LEGALLY PERMITTED RENT.
* THERE IS PROBABLY LESS OVER-CHARGING OF SUB-TENANTS IN
DOMESTIC TENEMENT FLOORS AS IS SOMETIMES THOUGHT, THOUGH POSSIBLY MANY SUB-TENANTS PAID KEY MONEY ON ENTRY AND ALSO PAY CERTAIN ADDITIONAL SUMS.
* AVERAGE ESTIMATED FAIR MARKET RENTS FOR TENEMENT FLOORS ARE ABOUT EIGHT TIMES ESTIMATED PERMITTED RENT OR ABOUT FIVE TIMES THE AVERAGE CURRENT RENT ACTUALLY BEING PAID.
* OVER 50% OF APARTMENT AND APARTMENT/COMMERCIAL BUILDINGS WERE CONSIDERED GENERALLY OF A FAIR STANDARD OR COULD BE BROUGHT UP TO SUCH STANDARD WITH MINIMAL REPAIRS/ALTERATIONS.
*
A CONSIDERABLE NUMBER OF APARTMENT AND APARTMENT/COMMERCIAL BUILDINGS ARE NOW EFFECTIVELY EXCLUDED FROM RENT CONTROLS.
* THERE IS A FAIRLY HIGH DEGREE OF OWNER-OCCUPATION IN
APARTMENT AND APARTMENT/COMMERCIAL PREMISES.
/SUB-LETTING