TNAG-1362-FCO40-1808-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 126

QUESTION:

Sir,

Question No. 8

Reply by Hon. D.R. Ford, LVO, OBE, JP Secretary for Housing to a question by Hon. Keith LAM, JP, in Legislative Council on 1st May 1985

Can Government inform this Council of

(a) the number of vacant stores or shopspaces

in public housing estates on Hong Kong Island and in the New Territories;

(b)

whether Government will consider lowering rents as a means of reducing the vacancy rate?

The total number of commercial properties managed

by the Housing Authority is 15,897. Of these the total

number of vacant premises on 31st March 1985 was 577, or

3.6%. As a matter of interest, this figure is about one-

third of the vacancy rate of commercial premises in the

private sector.

The Housing Authority will certainly consider

lowering rents in order to reduce vacancies. Indeed it

is being done already.

As far as initial lettings of commercial tenancies

are concerned, the Housing Authority adopts a tendered

rent system. The upset rent is set at not more than 90%

of the full market value as assessed by the Commissioner

of Rating & Valuation. If no tenders are attracted above

/this upset