Hong Kong rent could be waived for two months to ease impact of 10 per cent rise for public housing tenants

More than 750,000 households bracing for 10 per cent increase to get two-month rent holiday under housing minister’s proposal

The final decision for the waiver lies with a Housing Authority committee, which is due to meet next month

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Public housing tenants in Hong Kong may be in line for a two-month rent holiday. Photo: Edmond So

Published: 8:04pm, 24 Jun 2020Updated: 11:05pm, 24 Jun 2020

More than 750,000 families in Hong Kong public housing should get two months of free accommodation to soften the impact of a 10 per cent rent rise, the housing minister has said.

The combination of the proposed waiver and the higher rent would see tenants paying 0.4 per cent more over the coming two years, amounting to an increase of between HK$2 and HK$21 a month. Average rent for the city’s public housing tenants is HK$2,072 (US$267) per month.

“Having considered the local and global economic downturns, and the uncertainty ahead due to the coronavirus pandemic, we understand that the public would like us to consider rent exemption and rent freezing measures to relieve the public’s pressure,” Frank Chan Fan said at a Legislative Council meeting on Wednesday.

“We decided to propose to the Housing Authority a two-month rent waiver period, so as to offset the economic burden arising from the rent increment,” he added.

The rent holiday would take the Housing Authority’s operating deficit to HK$2.5 billion. The government department, which manages all public housing estates in Hong Kong and is chaired by the housing minister, has conducted a rent review every two years since 2008.

According to the results of the review revealing the 10 per cent rise on Monday, and before taking the possible rent waiver into account, tenants would have to pay between HK$42 and HK$498 more, with the average increment about HK$200.

While the decision on the two-month rent waiver would lie with the Housing Authority’s subsidised housing committee, due to meet next month, Chan said he would encourage it to approve his proposal.