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When renewing leases for flats for Civil Servants who are entitled to quarters, it is likely that Government
will have to pay rentals which are near to or even higher
than the salaries of the individuals concerned. This
situation is, to say the least, abnormal.
Although Government will soon be releasing a number of sites for high-quality private residential development, such accommodation will not come on-stream until 2 to 4 years
from now.
Now where does all this leave our middle-income
Hong Kong Belongcrs, whose incomes are in the range of $5,000 $10,000 monthly?
Those who are living in rent-controlled premises are safe for the time being. They have mostly been paying rent with increases of 21% every 2 years.
Hong Kong Belongers in this $5,000 - $10,000 monthly income bracket who are renting flats built after 1973 are subject to unlimited rent increases upon the prescribed notice being given.
Should they wish to buy a medium flat at today's prices, they find it is financially beyond their means to
do so.
Ja
A new medium flat of between 1,000 1,700 square feet is currently selling at $800,000 to $2 million. At prevailing interest rates, it is not feasible for a middle- income Hong Kong Belonger to purchase his own flat.
Sir, Hong Kong continues to be an attractive place for investment, for the setting up of regional offices, and for people of diverse talents and backgrounds to come to live here and contribute to our economic growth. They will be taking up whatever large or medium flats that are available
t premium prices.
In the foreseeable future therefore there will
be a severe shortage of large and medium flats, a situation which will keep rentals and purchase prices at premium prices.
/P. 3
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