Hong Kong Housing Authority proposes 1.17 per cent rent hike for public flats
- Extra cost amounts to average monthly increase of HK$26 (US$3.3), lowest in past decade
- Authority says it will waive increased amount in first year to ease burden on tenants amid coronavirus pandemic
Hong Kong’s Housing Authority has proposed raising the rent for public flats by 1.17 per cent, amounting to an average monthly increase of HK$26 (US$3.3), the lowest in the past decade.
The authority on Tuesday said the rent increase would range from HK$5 to HK$66 and it would take effect from October for two years if the plan was approved, but it would waive the extra amount in the first year to ease the burden on tenants amid the coronavirus pandemic.
“Given this special situation, we consider it not unreasonable to provide some form of relief measure to ameliorate the possible economic burden on public rental housing tenants which may be brought by the rent increase,” the authority said.
According to the agency’s Housing Ordinance, a rent review for public flats is carried out every two years with reference to changes in tenants’ income.
Under the proposal, taking the current average monthly rent of HK$2,278 (US$290) as an example, the new rent would be HK$2,304 per month. An amount of HK$312 would be waived in the first year.
Wilson Or Chong-shing, a member of the authority’s subsidised housing committee said he welcomed the plan to waive the extra amount in the first year.
“Under the pandemic, [low-income residents] are strapped for cash. I think it is a more humanistic approach for the authority [to subsidise] the rent increase,” Or said.