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"Government rent is not a new Government policy. The requirement to pay Government rents under Annex III to the JD was publicised when the JD was signed in 1984, and subsequently made known to property owners when their non-renewable leases were renewed, or when they were granted a new lease.
"About 1 million properties will be affected." the spokesman said.
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Of the 1 million properties, approximately 60% are small residential flats (up to 70 square metre saleable area) for which the rents payable should generally be less than $200 per month, 6% are medium sized residential flats (70 square metre 100 square metre) for which the average rent will be around $500 per month and 4% are large residential flats (100 square metre and over) for which the rent should average around $1,200 per month.
The Bill will be introduced into the Legislative Council on December 18, 1996.
Government rents are already being collected in respect of a few leases that have been extended. Most of the leases for which Government rents will be payable are in the New Territories including New Kowloon. These rents will be payable from 28 June 1997, the day following that when the leases would have expired, had they not been extended until 30 June 2047 under the New Territories Leases (Extension) Ordinance.
"No premium is charged for the extension of non-renewable leases nor for those leases in the New Territories including New Kowloon. Instead, Government rents at 3% of the rateable value of the land leased will be charged. This amounts to about half of the rates being paid by property owners," he added.
The above Government rents are not payable in respect of rented Housing Authority flats constructed on land vested in the Housing Authority; most properties on Hong Kong Island and Kowloon south of Boundary Street; certain rural properties owned by indigenous villagers and by tsos or tongs; and very low value properties such as small agricultural lots and ruined houses.
There will be about 1.2 million properties under these categories which are not
affected.
The Government spokesman explained, "Paragraph 2 of Annex III to the JD and section 9 of the New Territories Leases (Extension) Ordinance make specific provisions for exempting certain rural holdings held by indigenous villagers and by tsos or tongs from the liability to pay Government rents.
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