Housing Society Announces 2020-2022 Rent Adjustment for Rental Estates
The Hong Kong Housing Society (HKHS) announced that taking into account the prevailing economic situation and domestic tenants' affordability, HKHS will provide a two-month rent waiver to all domestic tenants for the months of October 2020 and October 2021, so as to offset the additional rental expenditure brought by the rent adjustment for the years 2020-2022 under the established rent review mechanism.
As a self-financing not-for-profit organisation, HKHS keeps the operating accounts of its rental estates independent of other businesses. The setting of rent level is mainly premised on the operating costs of rental estates, including the recurrent management expenses, tenancy administration costs, rates and government rents, as well as the expenses for major improvement works, repair and maintenance. Besides, other factors including inflation rate and salary index are also taken into account when assessing tenants' affordability. In accordance with the rent review mechanism, HKHS has adjusted the rent for its 20 rental estates by an increase of 8%, which will be in effect on 1 October 2020 until 30 September 2022. The average rent of a rental unit will be around $2,321. It is anticipated that a deficit would be incurred in rental estates operation.
HKHS said that the two-month rent waiver will completely offset the increase in rent during the review period, hence the total rent expense over the coming two years will not exceed the rent payable by tenants at the current level. The arrangement aims to strike a balance between tenants' affordability and the sustainability of rental estates operation. The rent foregone due to the two-month rent waiver will be more than $150 million. On 1 April this year, HKHS has introduced enhancements to its "Rent Assistance Scheme" to benefit more tenants encountering short-term financial hardship.
HKHS has also introduced a number of rent relief measures earlier, including the deferment of domestic rent review which resulted in a rent freeze from April to September this year. Besides, in response to the Government's measure to pay two months' rent for Group A rental estate tenants, HKHS offered its Group B rental estate tenants two-thirds rent reduction for two months in January and July of 2020, so as to help the tenants tide over these difficult times. The deferment of domestic rent review and rent reduction involved about $42 million in total.
HKHS Rental Estates Portfolio
Name of Rental Estates
Number of Flats
|港島區 Hong Kong Island|
|1. 明華大廈 Ming Wah Dai Ha||2,516|
|2. 健康村 Healthy Village *||1,189|
|3. 勵德邨 Lai Tak Tsuen||2,675|
|4. 觀龍樓 Kwun Lung Lau||2,343|
|5. 漁光村 Yue Kwong Chuen||1,144|
|九龍及新界區 Kowloon and New Territories|
|6. 駿發花園 Prosperous Garden *||662|
|7. 家維邨 Ka Wai Chuen||1,676|
|8. 樂民新村 Lok Man Sun Chuen||3,674|
|9. 真善美村 Chun Seen Mei Chuen||1,027|
|10. 觀塘花園大廈 Kwun Tong Garden Estate||4,922|
|11. 滿樂大廈 Moon Lok Dai Ha||947|
|12. 祈德尊新邨 Clague Garden Estate||553|
|13. 寶石大廈 Bo Shek Mansion *||267|
|14. 祖堯邨 Cho Yiu Chuen||2,543|
|15. 偉景花園 Broadview Garden||448|
|16. 乙明邨 Jat Min Chuen||3,747|
|17. 茵怡花園 Verbena Heights||971|
|18. 對面海邨 Tui Min Hoi Chuen||302|
|19. 翠塘花園 Lakeside Garden||234|
|20. 沙頭角邨 Sha Tau Kok Chuen||802|
* Bo Shek Mansion, Healthy Village (Redeveloped) and Prosperous Garden are Group B rental estates, while all the others are Group A rental estates.