XN000022-1981-07-08 — Page 10

WEDNESDAY, JULY 8, 1981

Q

LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL 1981

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THE SECRETARY FOR HOUSING, THE HON DONALD LIAO, SAID TODAY THAT THE RENT FOR A TYPICAL CONTROLLED PREMISES IF RAISED BY THE MAXIMUM RATE OF 30 PER CENT WOULD, AT THE NEXT INCREASE, AMOUNT TO 45.5 PER CENT OF THE MARKET RENT.

42.3.

UNDER THE 21 PER CENT LIMIT THE PERCENTAGE WOULD HAVE BEEN

+ IN DOLLAR TERMS IF A CONTROLLED RENT IS $1 000 WHERE THE MARKET RENT IS ABOUT $2 800, THE NEW RENT, WITH THE MAXIMUM INCREASE, WILL BE $1 300, RATHER THAN $1 210,+ HE EXPLAINED.

HE CITED THE EXAMPLE WHEN WINDING UP THE DEBATE IN THE LEGISLATIVE COUNCIL ON THE LANDLORD AND TENANT (CONSOLIDATION} (AMENDMENT) BILL.

MR LIAO SAID THE BEST INCENTIVE FOR OWNERS OF NEW FLATS TO PUT THEM ON THE RENTAL MARKET IS THE REMOVAL OF SUCH PREMISES FROM THE AMBIT OF THE RENT CONTROL LEGISLATION.

HE REITERATED THAT THE ONLY LONG TERM SOLUTION TO THE PROBLEM OF HIGH AND INCREASING RENTS IS THE PRODUCTION OF MORE HOUSING FOR THE RENTAL MARKET.

HOWEVER, RECENT STATISTICS ON CONSTRUCTION OF PRIVATE HOUSING WERE FAR FROM ENCOURAGING, HE NOTED.

FOR THE FIRST SIX MONTHS OF THIS YEAR, HE SAID, THE NUMBER OF UNITS IN NEW PRIVATE RESIDENTIAL BUILDING PROJECTS WITH CONSENT TO COMMENCE WORK HAD DROPPED BY NEARLY 27 PER CENT OVER THE SAME PERIOD LAST YEAR FROM ABOUT 18 000 TO 13 000 UNITS.

+ALTHOUGH THE REASONS FOR THIS DROP CANNOT BE PINPOINTED IT IS CLEAR THAT EVERY OPPORTUNITY MUST BE TAKEN TO REMOVE POSSIBLE CONSTRAINTS ON THE PRODUCTION OF NEW FLATS,+ HE SAID.

MR LIAO NOTED THAT THE REPORT OF THE SPECIAL COMMITTEE ON LAND SUPPLY INDICATED THAT THERE WILL BE A STEADY SUPPLY OF SITES FOR PRIVATE HIGH DENSITY HOUSING OVER THE NEXT FEW YEARS.

PRODUCTION OF PUBLIC HOUSING, BOTH FOR RENTAL AND FOR HOME OWNERSHIP, HE SAID, HAD REACHED A RECORD LEVEL OF 35 000 FLATS ANNUALLY. THIS WOULD NOT ONLY BE MAINTAINED BUT INCREASED WHEN POSSIBLE.

AS TO LUXURY PREMISES, MR LIAO SAID THAT THIS YEAR A TOTAL OF 1 455 UNITS OF 160 SQUARE METRES OR MORE WERE FORECAST TO BE PRODUCED, AND A FURTHER 1 635 NEXT YEAR. THE AVERAGE ANNUAL PRODUCTION OF SUCH LARGE UNITS FROM 1971 TO 1980 WAS 608 UNITS.

MR LIAO ADDED THAT THE TREND WAS FOR MORE SUCH FLATS OR HOUSES TO BE BUILT IN WHAT USED TO BE CONSIDERED OUTLYING AREAS+ AND IF PROSPECTIVE TENANTS ARE TO BENEFIT FROM MORE FAVOURABLE RENTS THEN THEY MUST BE PREPARED TO LIVE IN THE NEW TERRITORIES RATHER THAN IN THE TRADITIONAL LUXURY HOUSING ENCLAVES OF HONG KONG ISLAND.

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