TNAG-1574-FCO40-2147-Housing-in-Hong-Kong-1986 — Page 9

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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estates which represent a small fraction of the total public

housing stock, the overall ratio will not be affected

significantly.

Mr. HUI Yin-fat has suggested that the biennial

rent increases would bring rents beyond the affordability

of the majority of public housing tenants over time. A comparison

on the movements of public housing rents and the consumer

price index shows that public housing rents have barely kept

up with inflation and have remained fairly stable in constant

price over the years. In contrast to the steadily improving

financial circumstances of the public housing tenants who

have resided in public housing for some time, rents have

lagged behind the real growth in the income of the average

tenants.

Mr. TAM Yiu-chung has raised the question of

comparison of public housing rent with those in the private

sector. I should point out that "rent" for public housing

is not really comparable to private sector rent as the former

includes rates (representing 16% and 25% of inclusive rents

for Group A and Group B estates respectively) as well

as management fees and other major repair and maintenance

charges. These are normally paid for by tenants separately

in the private sector. Even so, the present rent level in

/public

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