No_3_1956 — Page 15

COMMISSIONER OF RATING & VALUATION

REPORT FOR YEAR 1955-56

From the point of view of the charged at 17 per cent per annum building industry, the Annual De- of the rateable value. This figure partmental Report for 1955/56 issued is reduced to 16 per cent where Gov- by the Commissioner of Rating and ernment water is supplied unfilter- Valuation is a highly informative ed and to 15 per cent where no pro- and intensely interesting document. visions exist for any such supply. In It is surprising the number of highly the New Territories the correspond- pertinent questions it answers re- ing charges are 11. 10 and 9 per cent garding the progress and develop- respectively. ment of building work in Hong Kong.

REVENUE FROM RATES

BUILDING DEVELOPMENT

It was a year of great activity for private building development, and new buildings arose with almost in all parts of phenomenal speed

Hong Kong Island, Kowloon and New Kowloon. Much of this new work was re-development, preceded by the removal of old structures ranging from a single building on a For instance, some of the ques-

small site to one large scheme near tions people are always asking are:— The net revenue from rates for the centre of the city, which involv- 1. How much private construc- the year for Hong Kong Island. Kow- ed the demolition of all buildings tion work was carried out last loon and New Kowloon was $49.769.- in an area bounded by four streets. year, and is the volume in- 806.36. over $10 million more than The new buildings provided a varied creasing or decreasing in rela- the year before. 'The revenue each range tion to previous years' work? year from 1946 was as follows:—

2.

There seems to be a tremen- dous number of unoccupied flats in new buildings: is this true?

3.

4.

5.

What kinds of building have been erected during the past few years?

of new

What is the present tendency as far as the types buildings being planned for erection?

Is there much buying and sell- ing of properties?

The answer to these questions. and many more, can be found in this most Interesting booklet, and we give below some excerpts of this in- formation.

...་

9,984,660 14 984.710 19,286.843

1946-1947 ...$ 6.826.649 (11 months) 1947-1948 1948-1949

1949-1950 1950-1951

1951-1952 1952-1953

1953-1954

1954-1955

+++

...

27,253,352

---

30.074,598

33.891,832

37,614,897

39.545.087

1955-1956 49.769,806

UNOCCUPIED BUILDINGS

of accommodation, and in- cluded much additional domestic space built by certain housing socie- ties. However, it was noticeable that most re-development took place in main or fairly prominent streets where the incentive of a quick sale or ready letting of the new buildings was most likely.

COST OF NEW BUILDING WORK

The cost of private building work during the year amounted to $174.- 000.000, a record total. Compilation of these figures commenced in 1950 and since that time the tota's for each year have been:-

1950-1951

1951-1952

1952-1953

1953-1954

1954-1955

1955-1956

Total for 6 years

$120,738,054 68.637,700 146,112,366

71,228,902

90,145,366

173.723,415

$670.585,803

In recent years a noticeable fea- ture of the extensive programme of private building work has been the length of time during which many floors in new buildings have remain- Before we do so. however. we ed unoccupied. During the year un- wou'd like to give an answer to one der review there was a quickening of the most important question of of the rate at which such floors be- all: what is the relation between came occupied, and while unofficial rents and costs in new building estimates have placed the number of work in the Colony?

unoccupied floors as high as three As these figures are compiled from or four thousand, the fact is that returns which generally are received For the year 1955/56 the cost of at the end of the year the new building work is given as just was less than one thousand,

total after varying periods of times from The the completion of the building work. under $174.000,000. For the same main centres of these empty floors the details are sometimes compiled period, the increase in revenue from were to be found in those districts in the year building is finished, while rates was approximately $10.225.000. which have been over-built by the others are entered up the following Since the rates are 17% of the rate- crowd'ng of blocks of large and small year. As a rule such variations ba- able value, which is in effect the

flats. There was little vacancy lance out fairly well, but in the case rents received, the increase in rents

anywhere of the traditional of large buildings that take a long paid during the year works out to

tenement house floors. This re- time to complete, compilation of cost about $60,000,000.

duction in the number of empty some time afterwards can produce a We admit there are a number of floors was not altogether the result distorted effect in relation to the qualifying factors which have to be of a greater demand for accommoda- year by year totals one year is taken into consideration but, never- tion, nor an indication that pros- inflated while another does not get theless, $60,000,000 increase in rents pective tenants could pay more; it its fair share. But in the aggregate during a year in which $174,000,000 was also assisted by developers plan- the figures are correct and to ap- worth of construction work was com- ning and altering their plans to portion the cost to the actual periods pleted. is a significant figure and meet the type of demand. Thus of construction would be troublesome one which bears thinking about. deep sites which in the past have and not really worthwhile. The total usually catered for one building, are of $670,000,000 in the six years is being built so as to provide two units. testimony to the remarkable growth front and back, on each floor, either which has taken place; it represents for letting or selling. In other cases an average expenditure during that where completed floors proved too time of well over $2,000,000 per week. large for letting or selling as one This private investment in unit, developers often made altera- buildings (the figures include ex- Except for the New Territories tions to produce accommodation of penditure on site formation but not New Kowloon), rates are a size and price with a wider appeal. the value of the land developed)

The following are some very in- teresting facts taken from the Rat- ing and Valuation Department's Re- port for 1955/56.

(outside

AMOUNT OF RATES

new

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