47. The unit chosen for the purpose of the calculation was the standard seven-storey block containing 432 rentable rooms, certain rooms being set aside as communal bathrooms and for administrative purposes. The figures were worked out as follows:
I.
CAPITAL COST OF ONE BLOCK OF 432 RENTABLE ROOMS
H.K. $
Value of land (23,000 sq. ft. @ $10 a foot)
230,000
Cost of construction (including an element for average
cost of site-formation and piling)
780,000
Add 2% of construction cost to cover P.W.D. supervision,
etc.
15,600
Overall completed cost of one block
1,025,600
II.
ANNUAL OUTGOINGS, INCLUDING CAPITAL REPAYMENT, IN RESPECT OF ONE BLOCK
Amortisation, that is the annual sum to be repaid in order to write off in forty years a loan of $1,025,600 bearing interest at 31% compound
Crown rent at normal rate of $800 an acre per annum Maintenance of building @ 1% per annum on cost of
construction
Estimated administrative and miscellaneous recurrent
expenditure
Overall outgoings for one block per annum
III RENT CALCULATION
432 X 12 65,289
H.K. $
48,026
418
3,900
12,895
65,239
= $12.50. $1 a
The above figures indicated that rents accruing from one block of 432 rentable rooms should total $65,239 per annum. The monthly rent for one room should accordingly be $ month was added for water and 50 cents for bad debts, voids, etc., and the rent was fixed at $14. In fixing the rent at this figure the Government instructed that the position should be re-examined from time to time in order to ensure that the calculation remained valid.
48. By the end of the period under review it appeared that the figure allowed for administrative and miscellaneous expendi- ture was too low but that the decision to let pairs of ground floor rooms as shops at $100 a month might well offset this
24
No comments yet.
Private notes are available after approval.