XN000022-1975-03-07 — Page 2

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FLIDAY, MARCH 7, 1975

LESS DOMESTIC FLATS COMPLETED LAST YEAR

*#**#*

THE NUMBER OF DOMESTIC UNITS PROVIDED BY PRIVATE DEVELOPERS LAST YEAR SHOWED A DECREASE, BY 1973 STANDARDS, BUT A SMALL

INCREASE OVER THE AVERAGE FOR THE LAST TEN YEARS.

DURING 1974 SOME 19,000 DOMESTIC UNITS WERE PROVIDED IN THE METROPOLITAN AREA -- THE URBAN AREA OF HONG KONG ISLAND, KOWLOON, NEW KOWLOON AND PART OF THE NEW TERRITORIES, MAINLY TSUỀN MAN AND KHAI CHUNG.

IN 1973, THERE WERE 23,700 UNITS WHILE THE YEARLY AVERAGE FOR THE PERIÓD 1964–74 WAS 13,000 UNITS.

FOR 1975, THE FORECAST FOR NEW DOMESTIC UNITS IS 13,600 AND FOR 1976, 12,400 UNITS, WHICH ARE WELL BELOW THE AVERAGE.

THESE FIGURES ARE COMPILED BY THE RATING AND VALUATION DEPARTMENT FOR ITS 1975 PROPERTY REVIEW WHICH WILL BE PUBLISHED IN APRIL.

THE COMMISSIONER OF RATING AND VALUATION, MR. R.A. FRY DISCLOSED THAT DETAILS OF THE PART ON DOMESTIC ACCOMMODATION HAVE ALREADY BEEN PREPARED AND OTHER SECTIONS WILL SOON BE COMPLETED.

OF THE 19,000 UNITS COMPLETED IN 1974, MR. FRY SAID, 7,000 UNITS WERE STILL VACANT AT THE END OF THE YEAR.

+THIS FIGURE IS NOT PARTICULARLY SIGNIFICANT. HE ADDED. +AS MANY OF THE VACANT PREMISES WERE ONLY COMPLETED DURING THE LAST THREE MONTHS.+

THE OVERALL SITUATION SHOWED LITTLE CHANGE THE TOTAL NUMBER OF VACANT UNITS IN THE METROPOLITAN AREA IS ESTIMATED AT 10,500 UNITS IN DECEMBER LAST YEAR, WHILE THE CORRESPONDING FIGURE IN 1973 WAS 10,000.

HOWEVER, MR, FRY NOTED THAT 1974 WAS A PARTICULARLY GOOD YEAR FOR THE SUPPLY OF LARGE AND MEDIUM FLATS AND THERE WAS AS A NESULT A MARKED INCREASE IN THE NUMBER OF VACANCIES IN THESE FLATS.

FOR THIS TYPE OF FLAT IN NEWLY COMPLETED BUILDINGS, THERE WAS A FALL IN THE RENTS TOWARDS THE END OF LAST YEAR. BUT FOR THE OTHER CLASSES OF FLATS, LITTLE CHANGE IN RENTALS WAS RECORDED.

THE DOMESTIC RENTAL INDICES CONTINUED UPWARDS FOR ALL CLASSES OF PROPERTY, MR. FRY CONTINUED, THE OVERALL INCREASE BEING 15 POINTS OR NINE PERCENT DURING THE YEAR.

HE POINTED OUT HOWEVER THAT ALL THE PREMISES INCLUDED IN THE INDICES ARE SUBJECT TO THE CURRENT RENT CONTROLS WHICH PERMIT MODEST INCREASES.

+THE INCREASE IS AN INCREASE ON RENTS WHICH ARE UNDER RESTRAINT AND THE RENTAL REMAINS GENERALLY BELOW CURRENT MARKET LEVELS, HE SAID.

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