TNAG-0913-FCO40-1123-Policy-on-housing-and-resettlement-in-Hong-Kong-1979 — Page 59

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Average monthly rent in the private sector are:

Size of flat

Under 1,000 sq ft

1,000 - 1,700 sq ft

Average monthly rent

$2.46/sq ft

$3.29/sq ft

1,700 sq ft

and over

$3.67/sq ft

5. Rental Housing Finance

i) Land: is transferred to the H.A. by the Government at notional

market value at the time of completion of the estate.

No pay

ment is made, but this value is reflected in the Authority's accounts as part of the Government's contribution.

ii) Buildings: Mark I-III blocks and most factory blocks are con-

sidered as fully depreciated and were transferred to the H.A. at land value only. Other buildings built by Government were transferred to the H.A. at their depreciated value calculated on a straight-line over forty years.

iii) Recurrent Expenditure: is met from income from rents.

iv) Capital Expenditure: is met from borrowings from the Develop-

ment Loan Fund repayable over forty years (after a grace period of two years.) No interest is payable; a "notional interest" of 5% on the reducing balance is shown in the balance sheet to reflect Government's contribution. Any surplus on the estate working account is transferred to the capital account and is in effect used as a contribution to redevelopment costs.

v) Government's Contribution: Including both land, buildings and

interest payments is conservatively set at more than $6,000m to date.

6. Home Ownership Scheme

The Scheme will produce 42,000 flats by 1985/76. The Housing Authority acts as Government's agent for the construction of flats for sale at cost, including land, to families not already owning property with monthly incomes of $5,000 and below:

Size in sq ft

Gross

Net

Cost

Phase I Small Flat: Large Flat:

528

446

$80,900

715

596

$165,900

Phase II Small Flat:

466

400

Large Flat:

718

610

$102,800) $200,000)

Estimate only

7.

•

Half of the flats are available to public housing rental tenants with no income restriction, thus freeing their flats for more needy people.

Effect of Refugees and Immigrants on the Housing Programme

The combined effects of high legal and illegal immigration have been severely felt in the housing field, adding to the existing problems of squatting and overcrowding. The revised population prediction indicates an increase in housing demand of some 100,000 households by 1981/82. It is estimated that 60% of these will eventually enter public housing i.e. two additional average size estates are needed.