XN000022-1991-05-02 — Page 4

3

THURSDAY, MAY 2, 1991

IN A

POSITION

ΤΟ

PRESENT

MR TSAO ADDED THAT HE HOPED TO BE CONCRETE PROPOSALS TO THIS END TO THE GOVERNMENT LATER THIS YEAR.

THE SECRETARY ALSO SAID HE FELT OBLIGED TO ENTER THE DECLARED INTENTION TO DECONTROL RENTS.

A CAVEAT ON

RISING

HE ACKNOWLEDGED THAT IT WAS QUITE APPARENT THAT

EFFECT ON THE RESIDENTIAL INFLATION WAS A CAUSE OF CONCERN AND ITS

MIDDLE PROPERTY MARKET COULD BE VERY SIGNIFICANT, PARTICULARLY IN THE TO LOWER INCOME BRACKETS.

"RECENTLY WE HAVE SEEN

INORDINATELY HIGH

JUMPS IN PROPERTY

PRICES FOR NEW MIDDLE- TO SMALL-SIZE FLATS COMING ON THE MARKET.

-

INDICATE

IN

STATISTICS

THAT IN "WORRYING

1990 THE YES. BUT PRODUCTION OF PRIVATE DOMESTIC UNITS WAS 29,400, PROJECTED TO RISE 1991 AND 1992 TO 32,500 AND 36,700 RESPECTIVELY.

SPAN,

WILL GO

TWO-YEAR "GIVEN THAT PRODUCTION CYCLES GENERALLY HAVE A

A

WHICH SPECULATION THE PRESENT PRICE SURGE MIGHT WELL BE WRONG.

**I THEREFORE DOUBT WHETHER WE SHALL SEE AN UNACCEPTABLE ENVISAGE THAT OUR INCREASE IN RENTS IN THE NEAR FUTURE AND I DO NOT STRATEGY

DECONTROL THE

OF A

LIMITED AND RELATIVELY DIMINISHING NUMBER OF CONTROLLED PREMISES IS LIKELY TO

то

RENTS

BE THWARTED,"

HE SAID.

TSAO MR

WAS SAID HE

REASSURED BY

THE FACT

ΤΟ CONTINUE

THAT MONITOR

THE THE

COMMISSIONER OF RATING AND VALUATION WOULD SITUATION AND WOULD PROFFER GOOD ADVICE ON THE WAY AHEAD.

THE

ADMINISTRATION'S

"HE WILL TAKE INTO ACCOUNT TO THE PHILOSOPHY THAT IN THIS PARTICULAR AREA MAY WELL OUTWEIGH ECONOMIC FORCES.

WILL CONTINUE TO BE IN PLACE AFTER OUR

SUBSCRIPTION SOCIAL CONSIDERATIONS

PREVENT PREVAILING MARKET THE CONFIDENCE OF PROPERTY RESIDENTIAL

"I AM ALSO REASSURED BY THE FACT THAT THE LEGISLATION WHICH

PRESENT REVIEW WILL THE EXPLOITATION OF TENANTS WHO ARE WILLING TO PAY RENTS WHILE AT THE SAME TIME POSSIBLY LANDLORDS MARKET," HE SAID.

AND

ENCOURAGING

INCREASING

INVESTORS IN

THE

GOVERNMENT-IMPOSED

TERRITORY'S ECONOMIC

THAT IT MIGHT COMB AS EARLIER IN HIS SPEECH, MR TSAO NOTED

PRIVATE SOMETHING OF A SURPRISE TO VISITORS THAT SOME 33 PER CENT OF DOMESTIC RENTAL UNITS IN HONG KONG WERE SUBJECT TO

OF THE FACT THAT THE RENT CONTROLS IN VIEW SUCCESS WAS DERIVED FROM ITS

FREE-ENTERPRISE, MARKET-DISCIPLINED SYSTEM WITH MINIMAL GOVERNMENT INTERVENTION IN PRIVATE SECTOR.

CURRENTLY, THERE ARE SOME 940

BASICALLY

THE

DOMESTIC PRE-WAR

UNITS

AND LANDLORD POST-WAR DOMESTIC

TENANT

TENANCIES

(CONSOLIDATION) SUBJECT

ΤΟ

CONTROLLED UNDER PART I OF THE ORDINANCE AND SOME 43,000

PART II CONTROL.

/MR TSAO