************************************************
The following is issued on behalf of the Housing Authority:
Rents for about 2,400 public rental housing flats in two new estates scheduled for completion in March next year will be maintained at the current district best rent level.
The inclusive rent for the 799 flats at Lei Yue Mun Estate Phase 2 will be $63.40 per square metre per month. The rent for the 1,598 flats at Shek Lei (II) Estate Phase 10 will be $61.20 per square metre per month.
"Under this rent fixing exercise, 80% of the flats are set at a rent level below $2,000 per month," a spokesman for the authority said, adding that public housing rents, inclusive of rates, management and maintenance costs, were heavily subsidised.
Noting that the rent levels were within the prospective tenants' affordability, the spokesman said that low-income tenants who could not afford the rents of the new flats would be offered refurbished flats of cheaper rents.
While tenants' affordability was the major consideration for the authority in setting rents for new estates, other factors such as inflation, rates, management and maintenance costs, comparable estate value, location, transportation, trend in general household incomes and the authority﷿s financial position were also taken into account.
The spokesman explained that the prospective tenants' affordability was measured by two median rent-to-income ratio (MRIR) benchmarks capped at 15% and 18.5% for minimum space allocation standard of 5.5 sq.m. and 7 sq.m. internal floor area per person respectively.
The district best rent levels for rent setting of new estates have been frozen since 1997 firstly due to the then economic downturn and secondly, the judicial review on public housing rents.
"Until a rent policy is formulated, the current district best rents should be applied for rent setting of new estates," the spokesman said.
Ends/Tuesday, November 7, 2006
Issued at HKT 16:56
NNNN
