TNAG-1574-FCO40-2147-Housing-in-Hong-Kong-1986 — Page 10

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public housing estates represents about 1/3 of the market level. In accordance with the results of the 1986 Bi-Census published yesterday, half of those households occupying whole flats in private housing paid a rent of less than $1,794. This compared with the $350 for those in public

rental blocks.

Mrs. Selina Chow has reflected a view from interest groups that public housing rents should be cost-related. This proposal has been examined on a number of occasions in the past and again by the Committee and the same conclusion has been reached i.e. that this is not necessarily a realistic method in setting rents. For example, the costs of construction of housing blocks in the more remote locations may be higher than those in the urban areas. In such circumstances, it would

be unreasonable to set rent levels higher for the former than the latter. The fluctuation in tender prices for contracts

/may