XN000022-1986-07-02 — Page 29

„EDNESDAY, JULY 2, 1986

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ON HOUSING TRENDS, HE RECALLED THAT HE HAD POINTED OUT IN HIS SPEECH IN 1981 THAT THERE WOULD BE ABOUT ONE MILLION PERSONS ON THE WORKER-OWNER SIDE AND 1.2 MILLION ON THE WORKER-TENANT SIDE AND THE TREND APPEARED TO BE THAT THE NUMBER OF WORKER-OWNERS WOULD GRADUALLY INCREASE.

SAID.

+THE RATIO IS NOW 1 TO 1.5 IN FAVOUR OF THE WORKER-OWNER,+ HE

ANOTHER INDICATOR WAS THAT MOST FLATS PURCHASED WERE WHOLLY OWNER OCCUPIED, HE ADDED, REFERRING TO FIGURES IN THE PROPERTY REVIEW 1986.

PROPOSED RENTAL ADJUSTMENTS +FAIR AND REASONABLE+ *****

RENTAL ADJUSTMENTS PROPOSED UNDER THE LANDLORD AND TENANT CONSOLIDATION (AMENDMENT) BILL 1986 ARE FAIR AND REASONABLE, AND SHOULD NOT CAUSE ANY SOCIAL OR POLITICAL OR ECONOMIC DISRUPTION.

THIS WAS THE VIEW EXPRESSED BY THE HON HILTON CHEONG-LEEN WHEN SUPPORTING THE BILL IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

HOPED THE PROPOSALS IN THE BILL WOULD ENCOURAGE LANDLORDS EVEN FURTHER TO IMPROVE THE MAINTENANCE STANDARDS IN THEIR PREMISES.

MR CHEONG-LEEN OBSERVED THAT THE BILL SOUGHT TO FINELY BALANCE THE INTERESTS OF BOTH THE LANDLORDS AND TENANTS OF PREMISES WHICH WOULD BE AFFECTED.

FOLLOWING THE PRINCIPLE OF GRADUAL DECONTROL, THE PERMITTED INCREASES PROPOSED IN THE BILL SHOULD BE FAIR AND REASONABLE, AND BY AND LARGE BE WITHIN THE CAPACITY OF THE TENANT TO PAY, HE SAID.

IN THE CASE OF PRE-WAR DOMESTIC PREMISES WHICH CAME UNDER PART I, IT WAS PROPOSED TO RAISE THE PERMITTED RENTS FROM 27 TO 30 TIMES THE STANDARD RENT, WITH EFFECT FROM AUGUST 1, 1986.

MR CHEONG-LEEN NOTED THAT SOME 2 200 PRE-WAR DOMESTIC UNITS WERE IN THIS CATEGORY, AND THE AVERAGE INCREASE WAS ESTIMATED TO BE 11 PER CENT OR $132 PER MONTH.

THE PART II GROUP COVERED POST-WAR PREMISES GIVING DUAL PROTECTION OF RENT CONTROL AND SECURITY OF TENURE TO ABOUT 105 JJ) TENANCIES OF WHOLLY-LET DOMESTIC UNITS PLUS A NUMBER OF SUB-TENANCIES.

HE NOTED THAT UNDER THE NEW PROPOSAL, WHICH WOULD BE EFFECTIVE FROM DECEMBER 19, 1986, THE MINIMUM PERCENTAGE COMPONENT WOULD BE RAISED TO 60 PER CENT OF PREVAILING MARKET RENT, INSTEAD OF 55 PER CENT AS OF LAST YEAR.

IT WAS ESTIMATED THAT 26 000 TENANCIES OUT OF THE TOTAL OF 105 000 UNITS COULD BE AFFECTED, MR CHEONG-LEEN SAID.

C

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