LANDLORD & TENANT ORDINANCE EXCLUSION ORDERS
SITE AREAS IN SQ. FT. OF ALL EXCLUDED BUILDINGS
Hong Kong
Year(s)
Hong Kong Island
Running
Kowloon (incl. New
Kowloon
Running
Combined Yearly
Grand Running
Totals
Kowloon)
Totals
Totals
Totals
1947/1957
411,507
472,930
884,437
1.4.57-31.3.58
168,941
580,448
194,445
667,375
363,386
1,247,823
1.4.58-31.3.59
143,406
723,854
321,549
988,924
464,955
1,712,778
1.4.59-31.3.60
90,044
813,898
184,287
1,173,211
274,331
1,987,109
1.4.60-31.3.61
92,656
906,554
367,155
1,540,366
459,811
2,446,920
1.4.61-31.3.62
462,821
1,369,375
834,513
2,374,879
1,297,334
3,744,254
1.4.62-31.3.63
471,349
1,840,724
827,198
3,202,077
1,298,547
5,042,801
1.4.63-31.3.64
734,937
2,575,661¦
691,199
3,893,276
1,426,136
6.468,937
There is a clear relationship be- tween these figures and new building completed. By to-day's standards. 1957-58 was a light year for new building, then followed the increasing amount of old property excluded for re-development in 1957-58 and 1958- 59 with a resultant increase in new premises becoming available in that latter year and 1959-60.
The latter part of 1958 was a diffi- cult year and the inclination to redevelop eased as shown by the drop in old buildings excluded during 1959- 60 which in turn was reflected in fewer new buildings coming forward in 1960-61 and 1961-62, that is, fewer in the sense of less than in each of the preceding two years though the level in each of the years 1960-61 and 1961-62 exceeded that of 1957-58. 1961-62 saw a tremendous increase in exclusion
cases which has been sustained throughout 1962-63 and 1963-64. This in turn is reflected in the record increase in new modation during 1963-64 which is likely to be repeated for at least one or two years to come.
accom-
The present position of vacant pre- mises must be viewed in relation to the
becoming
amount which is available and as regards the supply of new domestic premises, the past year saw an unprecedented amount completed.
Why do new premises take some time filling up? There are a hundred and one reasons but perhaps it would be helpful to enumerate few of them:-
а
Most new property is built for sale in the first instance.
Although most is built for sale, a high proportion, particularly of tene-
94
ment-type floors, of those sold are eventually let.
This buying and then letting in- volves two operations which require additional time and so the eventual letting takes longer than if the pro- perty were built as an investment to let in the first place.
Some purchasers of new property anticipate leaving old property. They cannot synchronize movements and may have to delay vacating old pre- mises in line with exclusion and compensation requirements. For example, the gazetting of an exclu- sion order may be delayed through petitioning.
At a time of rent increase control those with property to let tend to become more selective regarding tenants and terms.
Some purchase property in ad- vance,
relatives perhaps for
and friends abroad or a member of the family intending to marry, and are naturally reluctant to let temporarily because of likely difficulties in ob- taining possession whenever it is wanted.
There is, of course, the over-riding question of price and all that goes with it, and a reluctance on the part of developers and landlords to sell and let cheaper than those bargains already made which could cause earlier occupants to become dis- gruntled.
There may be disputes concerning title.
Some buildings or parts of build- ings for one reason or another are less attractive and especially when a large supply is available, tend to be
rejected by those seeking accom- modation.
The number of empty premises is purely a physical check on occupa- tion which does not attempt to probe how sales or lettings may be pro- gressing.
The 16,558 premises comprised in the March 1964 special survey were further examined to see the purpose for which they were built, that is, initially for sale or to let or built for the owners' occupation, with the fol- lowing results:-
Initially Owner For To Occupa Sale Let
tion
270
42
4,246 Hong Kong
504
Kowloon
6,020 924 New Kowloon 4,160 254 138
14,426 1,682 450
the corresponding percentages being:-
Initially Owner For То Оссира- Sale Let tion
Hong Kong Kowloon
New Kowloon
Overall
85% 10%
5%
86% 13%
1%
91% 87% 10%
6% 3%
3%
The total of 16,558 inspected is not complete, but is a very substantial part of the year's supply and is fully representative of what was built.
The figures clearly show that the bulk of new construction is for sale in the first instance though eventually some become owner-occupied while others are let in whole or in part by the purchasers as shown in the fol- lowing table derived from an analysis of premises valued for rates in the last two years:—
THE HONG KONG & FAR EAST BUILDER-VOLUME 19, NUMBER 2
Page 100Page 101
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