XN000022-1974-04-19 — Page 2

1

TENANTS FACE BRIGHTER PROSPECTS

SAYS RATING AND VALUATION COMMISSIONER

**********

THOSE SEEKING OR LIVING IN PRIVATE DOMESTIC TENANCIES NOT SUBJECT TO GOVERNMENT RENT CONTROL FACE A MUCH MORE ENCOURAGING PROSPECT THIS YEAR, ACCORDING TO THE COMMISSIONER UF RATING AND VALUATION, MR. RAYMOND FRY.

ADDRESSING THE AMERICAN CHAMBER OF COMMERCE TODAY, MR. FRY NOTED THAT AS A RESULT OF GOOD SUPPLY OF NEW ACCOMMODATION IN THE LAST TWO YEARS, THERE WERE AT THE END OF LAST YEAR JUST UVEK 10,000 VACANT DOMESTIC UNITS, WHICH WAS THE HIGHEST VACANCY PUSITION SINCE 1968.

THE CURRENT TIGHT MONEY SITUATION, HE SAID, WAS BEGINNING TO AFFECT DOMESTIC RENTS AND THIS WAS SHOWN BY A REDUCTION IN THE ASKING RENTS IN ADVERTISEMENTS.

MR. FRY RELIEVED THAT THERE WOULD BE A GENERAL LOWERING -UF RENTS IN LARGE AND MEDIUM FLATS IN THE PRIVATE SECTOR.

IN HIS OPINION, THE EASING OF THE RENT SITUATION IN HONG KONG WAS PARTLY DUE TO THE FACT THAT THE GOVERNMENT CEASED TU REFUND RATES ON EMPTY DOMESTIC PREMISES AS FROM JANUARY 1 THIS YEAR AND +THIS WILL BE AN INDUCEMENT TO LANDLORDS GETTING THEIR PREMISES OCCUPIED QUICKLY AND AT THE GOING RATE, WHATEVER THAT HAPPENS TO BE+.

MR. FRY SAID THERE SEEMED TO BE AMPLE ACCOMMODATION OF THE LARGE AND MEDIUM TYPES TO MEET THE DEMAND BOTH THIS YEAR AND NEXT,

NEVERTHELESS, AS FOR THE SITUATION AFTER 1975, HE FOUND IT IMPOSSIBLE TO PREDICT. IT WAS DIFFICULT TO GAUGE REQUIREMENTS, WHICH WERE VERY MUCH BOUND UP WITH THE ECONOMY, THE NET INFLOW OF OVERSEAS NATIONALS AND MAJOR DEVELOPMENT WORKS SUCH AS THE MASS TRANSIT RAILWAY, ALL OF WHICH +INCREASE THE DEMANDS ON HONG KONG'S INFRA-STRUCTURE AND, IN PARTICULAR, ACCOMMODATION+.

REFERRING TO THE SUGGESTION RECENTLY MADE BY THE SECRETARY FUR THE ENVIRONMENT THAT THE GOVERNMENT MIGHT ENGAGE IN JOINT SCHEMES WITH PRIVATE DEVELOPERS TO PRODUCE ACCOMMODATION FÜR ITS USE, MR. FRY SAID THAT THERE WERE ALSO SOME COMMERCIAL ORGANISATIONS WHO COULD AND SHOULD DO MORE IN THIS DIRECTION.

+THE PROSPECTS FOR TENANTS ARE INEXTRICABLY BOUND UP WITH THE PROSPECTS FOR LANDLORDS, HE OBSERVED, POINTING OUT THAT UNLESS DEVELOPERS COULD SEE PROSPECTS FOR FAIR PROFITS, IT WOULD BE HARD TO GET THE NEW ACCOMMODATION WHICH WAS SO VITAL TO IMPROVING THE LIVING STANDARDS OF ALL INHABITANTS IN HONG KONG.

ON THE SHORT-TERM POSITION OF OFFICE ACCOMMODATION, MR. FRY WAS LESS OPTIMISTIC.

ALTHOUGH THE SPACE FOR OFFICE ACCOMMODATION COMPLETED LAST YEAR REPRESENTED A SUBSTANTIAL IMPROVEMENT ON 1972, THERE HAD BEEN A CONTINUING DEMAND FOR OFFICE ACCOMMODATION IN THE CENTRAL BUSINESS CENTRES, AND THIS HAS TENDED TO KEEP RENTS ON AN UPWARD COURSE, HE NOTED.

WHILE HE