FCO_49_622_PLANNING_PAPER_ON_HONG_KONG_1976 — Page 66

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The platform in the years '76/77 and '77/78

reflects rephazing during the recession. This

has been picked up by means of additional building

which will produce a higher rate of completions from

'78/79 than in the original plan.

Some of Hong Kong's housing and environmental

problems result from the density of population crowded

round the harbour area. The housing plan provides for

its redistribution in new towns in the New Territories.

Work is proceeding on these and their related amenities,

and massive expenditure is being undertaken to provide

fast communications between them and the old urban areas.

The administration is augmenting this

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programme in two ways. Firstly it is steadily raising

the rents in its estates in the old estates these were

as low as 6% of commercial rents. The first rise imposed

was in December '74 and amounted to 32%. A similar

increase in commercial (eg shop rents) was imposed in

March this year. A further increase in domestic rents

of about 25% will be imposed this December. This

process will be continued until domestic rents are about

50% of market rents. Tenancies in new estates are startin

at between 35% and 40% of market rates. Rent assistance

is available to those unable to pay the higher rents

from the Social Welfare Department.

Secondly the

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