PROPERTY REVIEW

1972
A STATISTICAL SUMMARY OF VACANCIES AND RENTAL MOVEMENTS

--o--

RATING & VALUATION DEPARTMENT

HONG KONG
FEBRUARY 1972

•' .
 CONTENTS

Paragraphs

PART I: INTRODUCTION 1.1 1.2

PART II: DOMESTIC PR~.MISES

Provision of accommodation 2.1 2.5

Unoccupied domestic accommodation 3.1 3•4
Supply and demand • 4.1 4.4
New developments 5.1 - 5.2
Future trends 6.1 6.2
Rental movements 7.1 - 7.4

"
PART III: SHOPS
Vacant shop premises • 8.1
Rental movements 9.1 9.2

PART IV: OFFICES

Supply and demand 0 10.1
Rental aspects 11.1

PART V: FLATT~D FACTORI.iill

Supply and demand • 12.1
Rental aspects • 13.1

i
 DOMESTIC PREMIS.C:S

Table I Provision of domestic accommodation by

main sources of supply

Table II • Distribution of permanent domestic

accommodation
Table III
Private domestic accommodation built,
number of units demolished and number
vacant

Summary of domestic vacancies

Vacancies by districts and estimates of

completions in 1972

Domestic units available and number

occupied in 1971

Occupancy trends by classifications

Pressure on accommodation

Purpose for which premises built

Occupation of domestic accommodation

Domestic units built by price brackets

Exclusion orders

Site areas of excluded buildings

Domestic rental movements

ii
 Table XIV Vacant shop premises
..
Table XV Summary of review findings
y
Table XVI Shop rental movements

OFFIC.t!;S
Table XVII Summary of review findings

Table XVIII Supply of commercial office accommodation

and vacancy position

Table XIX Office rentals

>f

FLATTED FACTORIES
Table XX • Summary of review findings

Table JCXI Supply of fl3tted factory accommodation

and vacancy position

Table XXII Rental movements

APPENDICES
Appendix A. Notes on statistical survays
~'
Appendix B Definitions of terms used in review
Appendix c Rental questionnaire
Appendix D • Areas and districts according to
tertiary planning units

PLAN

Showing c0nsus districts for the metropolitan area

iii
 PROPERTY REVIEW 1972

Pll.RT I

riJ'
INTRODUCTION I

1.1 This is the third such review covering, as on previous occasions, private building development in
e metropolitan area. Opportunity has been taken to modify and refine slightly some of the tables and analyses
t it has not been possible, owing to time and staff limitations, to much expand the scope of the review. It
' , tor instance, been hoped to include a more detailed analysis of purchase prices, but the demands of Rent
acroase Control work and preparation for a review of rateable values in 1972 has precluded any expansion in '
·I

s direction. Tabulation of data is, however, proceeding with a view to including something on these aspects
D the 19?3 review. Two areas in which it has proved possible to expand the review are in providing a fuller
coverage of supply and demand aspects of shop premis~s, and a rental study of commercial office accommodation.
review cannot claim to provide a complete picture of the property situation in 1971, or an oracle for th~
ture. It should be appreciated that this brief statistical report is produced as quickly as possible, following
coll•ction and tabulation of information. It is thought that by proceeding in this manner it will be of greater
use and benefit to developers and others concerned with the property market in Hong Kong, than a more detailed
~d aP~ 1 ·rtical report produced after a lengthier period of study and evaluation. As last year, rental questionnaires
Vere : to tenants and the department is most grateful to those who responded to this enquiry. Of the 5,250
quest. 'ires - Appendix C - despatched about 46% were returned, and this had the effect of considerably ~educing
data • ~ction at premises. Further efforts have also been made this year to improve the estimates of future
auppl; .uthorised architects were invited by letter to complete schedules of all projects in hand at December
1971 1 gain the department would like to acknowledge the assistance of those architects who kindly co-operated

and c !ted returns.

/ !
1 As for last year the text has been kept mainly to comments on the results as tabulated and analysed. ,/
Rotes :ho surveys, details of rental enquiries, and the statistical bases employed are contained in Appendix A;
defin lS of terms used are given in Appendix B, and areas and districts according to tertiary planning units '1
a.rde 1 i in Appendix D. For ease of reference, the collective nomenclature "metropolitan area" is used to •!;
escr~w- the urban area of Hong Kong Island, Kowloon, New Kowloon and that portion of the New Territories whic:':l
is assessed to rates, principally Tsuen Wan and Kwai Chung. The plan at the back shows census districts as used
for the purpose of the review.

.
 PART II
!
,. DOM.i!:STIC PREMIS.l!S
!: Provision of accommodation:
2.1 The provision during 1971 of 12,242 units in the private sector fell somewhat short (about 1~)
of the estimate made last year - see Table I. The shortfall occurred in all classifications, the most
noticeable being in the large and medium flat classifications in which, although the previous shortage
has eased somewhat, the balance of supply and demand has not yet reached equilibrium. However, it should
be noted that the number in these classifications completed in 1971 very nearly equalled the total eupply
for the previous three years 1968-1970. Apart from the Hong Kong Housing Authority, completions in the
public sector were also well below published programmes. The main factor influencing the shortfall seems
to be a continuing shortage of labour in the building industry. It should also be noted that, as a result
of this shortfall, estimates for 1972 have increased, and much of the "hangover" will be completed in the
first half of this year.
2.2 In the private sector the estimate of 27,631 units to be completed during 1972 is very
encouraging and even though, based on last year's experience, it would perhaps be realistic to expect
some shortfall in this estimate, the number likely actually to be completed should bring us back to the
levels of supply reached in the mid-sixties. Particularly encouraging is the estimated number of
compl8tions in 1972 in all classifications of flats. An improved supply of large and medium flats
during 1972 and 1973 should, it is hoped, go a long way towards easing the abnormal rental situation
which he ·ntinued for this type of accommodation over the past two years. The estimated completion
of some 0 of such flats in 1972 is way above the supply in any previous y~ar though, of course,
demand l lso considerably increased in recent years. Noteworthy also is the large number of small
Ir.I flats eE ted to be completed in 1972; nearly three times as many as those completed in 1971 and more
!
l
than dot the number completed in any previous year. It should perhaps also be noted that the number
of tenen floors 0xpected to be completed in 1972, although greater than the four previous years, is
still vE uch., below those built in the "boom" years, and this continues to illustrate the trend in
.I recent ~ to the preference of purchas~rs and tenants for small self-contained premises rather than
the shar acilities provided by th~ traditional tenement floor developmentR. Estimated completions
in the r c sector are over 27 1 000 units and, if expectations are realised, 1972 should prove to be
a very g year for the provision of domestic accommodation.

2.3 Table II shows graphically the total of permanent domestic housing by main categories in
the metropolitan area at the end of 1971, with a breakdown in the private sector between premises built
pre-war (8.82%) and post-war (91.18%).

I
I
·1 2

!
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 2.4 The graph at Table III provides a correlation for the years 1965 to 1971 between domestic units
built in the private sector, demolitions and the number of vacancies noted in the department's surveys: it
~also includes the estimates of the number of units likely to be completed in 1972 and 1973.
~

2.5 As will be eeen from Table IV (column (ii)), the pace of development increased towards the end
the year with some 6<JI, of the year's supply becoming available in the last six months.

5%) , !
domestic accommodation:

3.1 The main results of th~~.survey of vacancies in private domestic premises are summarised in
Table IV, which shows total vacancies noted in Junu~ry 1972 by areas according to the month the premises
were certified for occupation in the pr~vious year together with th~ carry-down of vacancies from earlier
periods. Also shown are the number of domestic units actually completed month by month during 1971. It
.t will be seen from this table that the Hhangovcr 11 of older premises still continues to influence vacancies •
However, such vac~ncies at Janu:..ry 1972 repr~sented only 24.79% of total vacancies as compared with 53-59%
in 1969 and 31.83% last year. Vacancies in new premises, th~t is those certified for occupation during 1971,
totalled 3,161 with vacancies heaviest on Hong Kong Isl~nd 2t 1,660. However, just over 60~ of total vacancies
were in buildings c~rtified for occupation in the last three months of the ye:Jr and this has tended to exaggerate
the position revealed at the survey. With about 25% of vacancies r0lating to old premises and 61% to those
completed in the last three months, vacancies in premises built during the first nine months of the year were
only some 14% of total vacancies.

• The grand total of vacancies at 4,203 at the end of 1971 is slightly higher than that for 1970
~d represents about 1.4» of the estimated stock of private domestic accommodation in the metropolitan
tal vac2.nci~s in each .of the annual reviews over the past seven years have been:

Total number of AS % of the total stock

Q

Year:
~
floors/units vacant: of private accommodation:

1966 19,224 9.<Y'fe

1967 16,899 7o0%

I
' 1968 14,935 5.8%
1969 • • • 0 7,559 2.8%

1970 2,439 o.9%

1971 3,453 1.2%

1972 4,203 1.4~

3
~
\ 3.3 An interpret3.tion of supply and vacancy figures indicates that the rate of occupation during
l
1969 was 1,o46 domestic units per month, while for 1970 the figure was 844 per month. Despite astightly
better supyly, the occupation rate for 1971 has shown little improvement over that for 1970:

(i) Vacancies ~t January 1971 3,453

(ii) Number of units of domestic accommodation
'I certified for occupation during 1971 12,242

I
I (iii) Number of domestic units available for
! occup~tion during 1971 15,695
I'

(iv) Vacancies at January 1972 4,203

(v) Numb~r of domestic units occupied
during 1971 11,492
(vi) Average number of domestic units
occupied each month 958

3'\4 The distribution of vacancies throughout the metropolitan area, compared with the position
at Janu..,.,.," 1971, is shown in Table V, which also provides information on the estimated provision of
accommc on by districts for 1972. In regard to particular vacancy aspects, 139 units are in a large
de velor in Yau Mn Tei the Crown lease of which is du~ to expire at the end of this year. Other note-
worthy ncy figures influenced by late completions were as follows:

District: No. of uni ts:·· Date completed:

West 133 November 1971
Wan Ch::ti 229 December 1971 '·
North Point 399 October 1971
Sh3.U Kei Wan 187 December 1971
Cheung Sha wan 386 Nov.-Dec. 1971
Kai Tak 192 December 1971
4
;
• 4.1 There was a slight improvement in 1971 in the supply of new domestic accommodation and the
reversal in the trend of occupation continued with less being taken up than was completed. This is largely
explained by heavy vacancies in premises only recently completed. The trend of occupation in recent years
is illustrated by the following figures covering the last seven years:
Percentage occupied in relation
Year: ,to number completed:

1965 ?Cf/>
1966 107%
1967 111%
1968 • 173%
1969 166%
1970 • • 91%
1971 94%
TE VI (a) shows graphically by classifications the numb0r of domestic units actually occupi3d comp~red
wj he available supply. Table VI (b) gives a breakdown of supply and occupation figures by domestic
c~ fications, together with the estimated number of such units expected to be completed during 1972 •.
I~ of interest to note that, despite the pressure on accommodation ~lt the upper level, the occupancy
r: 'or large fl~ts, expressed in rel~tion to what was available, was only 66%, while the percentage for
hi ; was lower still at 47.5%. However, here again late completions tended to distort the results, as
5; :ant large flats are in one block in Ho Man Tin certified for occupation only at the end of November
1· 1hilst 34 such fluts in the Tai Hang area certified for occupation in May 1971 are for sale only •

•2 Table VI (b) also shows occupancy trends in the various dom~stic classifications in 1971 and
i 1tes what is likely to be available for sale or rental in 1972. The estimate of completions for 1972
ic .~ry encouraging and this, together with vacant premises, should provide an overall average supply
avniiab1e in 1972 of roughly 2,650 units per month. Noteworthy is th~ large number of fl~ts of all
classifications likely to be nvailable, compar~d with last year's figures - in brackets - viz., large
flats 1,183 (632), medium flats 3,503 (1,06o), small flats 16,881 (6,527). This trend, in so far as large
and small flats are concerned, seems likely to continue in 1973.

5
 4.3 In previous reviews, the average period premises remained unoccupied following the issue of
an occup~tion permit was used to illustrate demand. It is considered that pressure on accommodation can
best be indicated by the rate at which accommodation is occupied after completion and, this year, indices
have been calculated to compare the pressur~ on different classifications of domestic premises as follows:

.Pressure Index:

Classification: 1970 .12L!.

Tenement floors 19.29 19.05
Small flats 22.56 18.43
L?-rge & medium flats 21.81 13.43
~11 classifications
(including houses and 20.18 18.29
workers' quarters)

Table VII shows graphic~lly the changes in pressure since 1966. The method of calculating the indices is
explained in pcragraph -t ( v) of iLppendix A. The advice and assistance of the District Commissioner, New
Territories (Mro D.Co Bray) in constructing these indices is acknowledged.

4o4 >e indices indicate that demand for accommodation has eased gen~rally. In particular the
shnrp incre:
1971) he.S g<
_n the ·supply of large and medium flats (from 448 in 1969 to 686 in 1970 and then 1,420 i~
' fair way towards satisfying demand. However, factors such as the time taken for decoration Ip
before occuj )Il v~y considerably as between large flats and tenement floors, and too much weight should app
not be atta< to the relative magnitude of the indices as between classifications. nUll'
con
for
New developr but
Uni
5o 1 12. 1 242 uni ts completed in 1971 were examined tc ascertain the purpose for which they were toe
built, that rhe.ther initially for sale or to let or for the developer's own occupation. The results of lld'
this analysi_ ___·e given in Table VIII (a) and. the corresponding percent!ages for the two preceding years in
Table VIII (b). :These figures again illustrate and emphasise the trend_,Qf re<?ent years for the bulk of new
domestic accomr.iodation to be built for sale in the first instance. Qlµ.te a large proportion of what is sold Of
becomes occupied by owners, but some is .let in whole (in the, s~nse of the :i,nterest involved, e.g. a floor or Ori
flat) or in part by purchasers as shown in Table IX. This,latter table provides an analysis of new domestic de
premises valued for rates during 1971. The overall proporLion occupied by owners was 61.4~ with, as last

6
 n the highest proportion (70.6%) being in the New Kowloon area. Cases in the "above $30,000"
es• ice bracket accounted for some 85% of all cases tabulated compared with 5% for last year and 45% in
ws: · 969· ~e incidence of owner-occupation at this level remained fairly constant at around 60% whilst
bat for premises in the "$30,000 and below" bracket Wij.S about 70%.
5.2 A further analysis of sale prices is given in Table X which shows do~stic units built in
971 by classifications and sale prices. This table illustrates the further extent to which sale prices
"have risen during the year. In 1970 premises priced in the li$40,000 and below11 bracket represented 48.94%
;of cases tabulated whilst for 1971 the corresponding percentage was only 24.41% - slightly under one half!
:·fhis change is perhaps most dramatically illustrated in the area of Tsuen Wan where in 1970 premises priced
at 11 $30,000 and#below" accounted for some 38% of premises built, whereas for 1971 the figure was down to
"6./'%. For the more expensive properties - above $100,000 - the percentages in the metropolitan area were
6.12') in 1970 and 18.40% in 1971, almost exactly three times! In this respect Hong Kong Isl&nd shows the
most notable change, from 14.05% to 26.63%.

Future trends:

.s 6.1 Estimutes of the supply of new domestic accommodation in 1972 and 1973 are shown in Table I,
graphically in Table III and by areas in Table V. If these estimates are realised the stock of private
housing will incre~se in 1972 by some ~ and in 1973 by about 7%. An indicntor of the likely supply of
nccommodation can also be obtained from l'\ll examination of plans submitted to the Building Authority in
connexion with new projects. In 1962 and 1963, the period before the Building (Planning) Regulations
'.1 be· fully effective, 2,14? and 1,983 plans respectively were submitted to the Building Authority for
ti,an.• ap ;l. In 1965 (the year of the bank crisis) the number dropped to 750 and by 1967 the number had dropped
Lr to )W of 213. In 1968 there was a welcome reversal of th~ trend with 364 projects being submitted for
a~ ll and in 1969 and 1970 the number of such projects increased to 7(6 and 1,087 respectively. The·
nu of such plc.ns approved in 1971 was 1,067 and of this figure 71% related to domestic or domestic/
cc cial buildings. hn attempt was made to obtain estimates of tha likely supply of domestic accommodation
fc 74; but the result was rather disappointing~ Many sources declin~d to provide any data or information
bt rom actual returns made, most of which relRted to large projects, it would appear that at least 13,355
ur of private domestic accommodation are likely to be built in 1974. Perhaps the department was asking for
f tc rd a look into the "crystal ball11 , for generally developers are reluctant to commit thGmselves more in
rl 3! e than is absolutely necessary.

6.2 Other key indicators to the continuing high level of activity in the property market is the volume
Of sales of land for redevelopment and the number of exclusion orders made under tho Landlord and Tenant
Ordinance; such orders.being invariably associated with redevelopment schemes. Tables XI (a) and XI (b) give
details of exclusion orders going back to 1956, while Table XII illustrates the amount of land which has been
 made ci.vailablc for redevelopment under these provisions. Exclusion orders fell from 885 in 1964 to 11 in ·
1968 but this trend was reversed in 1969 with 27 such orders and in 1970 the number gazetted was 101. The'
number of orders made in 1971 increased further to 216, and the land made available amounted to nearly 580,000
square feet. Much of this land is situated in the older urban areas and is likely to be the subject of high
density domestic development. The total area of land made available for redevelopment under these provisions
now exceeds ten million square feet, or nearly 230 acres.

Rental movements:

7.1 The results of this year's enquiry are given in Tables XIII (a) to XIII (f), which show, by
clRssifications and ~reas, basic rental data, an index of rents based on 1968 ond rental increases between
1970 and 1971. It should be bpt well in mind in interpreting these tables that a rental index results from
an aggreg~tion of rental increases, rental decreases and those where the rent h~s remained unchanged. Such
figures tend to minimise the incidence of extreme rental movements, and this is why a separate analysis is
provid·~d - column (vi) - showing the rental increase which resulted in tabulating only those cases where. ~he

.I
rent sctually increased between December 1970 and December 1971. Even these figures do, of course, hide some
of the very high rent~l increases noted elsewhere during 1971, particularly in the case of those larger flats and
houses excluded from the protection afforded by the Rent Increases (Domestic Premises) Cohtrol Ordinance 1970.
It is a well known fact th:>.t new httings free of control have b~en ma.de during the yea:r at rents sometimes
double those of existing tennncies of similar premises. This is particularly so in the case of lilrge flats
where, in ·the cases tabulated for this classification, the rent~ls ranged from $916 to S6,40o per month. On
the other h~n~ it must also be borne in mind that most of the premises included in these samples ere covered
by the Ord: :e and thus tha r~ntnls p~ssing are under restraint. However, it was noted that of those cases
where incr( ; in rent occurred~ only 217 or 12.60% of the increases were effected under the provisions of
the Rent Ii .ses (Domestic Premises) Control Ordinance 1970.

7.2 an indicator of tht:: general trend of rents it will be seen that the index has moved up nearly
16 points c the year or.34.12% since December 1968. It will.be seen from Table XIII (f) that increases
were ·effeci n 1,722 or 40.94% of the cases included in the sample. An analysis of these cases shows that
the averag( reaseduring1971 is 31.,54% with the heaviest increases occurring in the case of medium and
large fle.tE 36.55% nnd 51.41% respectively. The highest percentage increase recorded was that for large
flats in Ne. wloon at 63.8%. Increases during 1971 for small flats averaged 25.9,3%, while for tenements
they averag ust over 17%.

7.3 It is of interest to compare these figures with those cases where certificates have been issued
under the Ordimmce in response ,to applications for an increase in rent of more than 15%. The average increase
awe.rded in such cases up to the end of 1971 was 18.8% while for medium and large flats it was 23.5% and 28.7%
respectively. In respect of rental agreements endorsed under the provisions of this Ordinance, that is cases

8
 .where landlords and tenants agree between themselves on an increase in respect of protected tenancies,
it» the overall average increase was 17.5% and for ~edium and large flats it was 25.6% and 35.5% respectively.
The
5Bo,ooo 7.4 or particulnr interest is the difference in average rentals in the various classifications
high between 1970 and 1971, viz.:
isions
December 1970 December 1971 Amount of Percentage
Classification: average :rental: average rental: difference: difference:
~ $ $ %
Small tenement floors 258 279 21 8.14
Large tenement floors 356 385 29 8.15
Jen
:; from Small flats 504 562 58 11.51
3uch
is Medium flnts 1,083 1,28o 197 18.19
: . the
some Large fl~ts 1,925 2,540 615 31.95
fiats and
. 1970.
r.ies PARI' III
a.ts
410n
ered SHOPS
cases
<IP nt shop premises:

8.1 hS ste.ted in previous reviews, it is extremely difficult to produce any sort of statistic2l
lrly ary for shop premises due to wide ranging.d1ffer0nccs in size, rental and trading position. Even to
t the numb~r of vacancies in new developments is difficult, for often the ground floors of such
:hat dings are unpartitioned and the ~hole, depending on dem~nd, may be eventually occupied as one large
or a number of smaller uni ts. In previous reviews it was possible only to provide a. table covering
e rated shop premises which were noted as vacant on the department's Vacant Tenement Registers •
. year in Table XIV all known vacant shop premises &re included and it is, therefore, not possible
~ompare this year's tabulation ~ith those for previous years. Shop premises were graded either
prim.-y or secondary, these terms referring to trading position and potentiJl, with a separ~te grade
ed
to cover arcade, bnsemont and upper floor shops. It should be noted with come interest that ther~ was
a total of 961 shop units vacant at January 1972, providing some 637,500 square feet of trading
crease
p r"JO/ accommodation, an average of 663 square feet par unit. However, much of this 3Ccommodation is located
..;. (/0

:i.ses
• 9

•
 in ar~as consider~d secondary - some 8o% of the number of vacancies or 77% of the square footage available~
Of the total shop premises vacant some 44% was situated on Hong Kong Island. Table XV provides details of
what was completed in 1971 and estimates of what is likely to be built during 1972 and 1973. It will be
seen that the amount expected to be certified for occupation during 1972 is well up on that provided.last
year, some 37%, while the supply for 1973 is likely to be over double that for 1971 •. Much of the expected
increase for 1972 - some 46% of the total number and 50% of the square footage is on Hong Kong Island.

Rental movements:·

9.1 The results of this year's rental enquiry are set out in Table XVI from which it will be
seen (column ( v)) that op average rentals have increased by just over 14 points or 12.25%._ during 1971 and
by nearly 30% since 1968. Of the shops included in the sample actual rental increases (averaging 43.06%)
took place in 140 or 30% of the cases tabulated. Where rentals were increased the largest increases
occurred in Kowloon (63.02%), and this figure is influenced by the inclusion of Tsim Sha Tsui.
I
9.2 The average rental passing at December 1971 for a shop of 586 square feet was $1,566 per month,
inclusive of rates, or $2.67 per square foot. ~hese figures may be compe..red with the averages for 1969
and 1970, viz.:
1969 $1,223 per month; ~2.10 per square foot

1970 $1,391 per month; $2.39 per square foot

•
However, aE" ··tioned in paragraph 8.1 above, statistical analyses for shops are difficult and such figures
are pcrhapE y useful as indicators of trends.

PART IV

OFFICbS
Supply and :i.d:

10.1 results of this year's survey are given in Table XVII while Table XVIII shows graphically
a correlati ~twe~n space built and vacancies for the past three years, with an estimate of .the space
likely to b ; available in 1972 and 1973. It will be seen from Table XVII that the amount of new office
accommodation completed during 1971 (458,450 square feet) was considerably less than that estimated last
year (711,427.square feet); due principally to work having.ba~n suspended on one large block in Sheung Wan.
However, with a lower rate of occupancy, the amount vacant at December 1971 (250,639 square feet) was CalSiderably

10
• llOre than that available at the end of 'f:he previous year (142,542 square feet). Much of this increase
in the amount vacant was in what is considered grade "A" accommodation - 5,531 square feet in December
:.1970 and 85,3'72 square feet in December 1971; but most of this space was in one recently completed
building in Central which had some 68,000 square feet available for which.the asking rent was $5.50
per square foot, exclusive of rates. The estimate of completions during 1972 is slightly up on
~revious expectations and the amount. of space available this year is likely to average just over
'•100,000 square feet per month, which figure may be compared with the average of 50,000 square feet
per month available in 1971. It is estimated that a further two million square feet will be completed
. in 1973 and this should go a long 'ilay to meeting the demand for this type of accommodation. The
bulk of what is expected to be completed in 19'72 and 1973 will be in the Sheung ~an and Central
districts which, despite attempts at decentralisation, is where the real demand continues to be.
Preliminary estimates for 1974 indicate that another one million square feet is likely to be completed
-in that year, of which more than half will be in the Central district of Hong Kong Island.

Rental a~ects:

11.1 For the first time the department has been able to include in this review a rental study
for office accommodation. This study has been projected back to 1968, tabulating 11 new11 rentals for
tenancies, either renewed or created in each of the years, and Table XIX does not, therefore, provide
a rental index on the lines of other rental-tabulations in this review. Rentals for this type of
ace :iation vary considerably having regard to size, floor levels, natural light, length of tenancy,
etc or example, rentals in grade "A" accommodation range from about $2 per square foot in Mong Kok
to t $5 per square foot in Central district. Over four years, office rents in general have more
the: ubled, with the highest percentage increases being recorded for grade 11 B11 accommodation. One
pm e reason for this is the present shortage of grade 11 A" accommodation, which has enabled
lar ds of grade 11 3 11 accommodation to increase generally rentals up to the lev8ls prevailing in the
hit grade. It will be noted that overall rentals h~ve increased from an average of $1.27 per
sq1 foot in 1968 to $2.66 per square foot in 1971. It is only exceptionally that new office
ac• Jdation will now be found to rent at less than 52.00 per square foot. I
I
;I
 PAR!' V

.FLATTED FACTORIES

1 Supply and demand:

12.1 Table XX gives the results of this year's survey and Table XXI shows graphically the correlation
between accommodation built and vacancies over the last eight years, together with an indication of the nmount
of space likely to become nvailable in 1972 and 1973. Although the total of just over 7.6 million square feet
of space completed during 1971 was some 1.85 million square feet less than that estimated in the last review,
it was n8vertheless the largest amount of space ever produced in one year. This shortfall in expectation
is largely accounted for ~Y the slightly delayed completion of three projects totalling 1.6 million square
feet. Similarly, the vacnncy of some 3.3 million square feet at December 1971, up from 1.9 million square
feet n y~ar previously, has only once, in 1966, been exceeded. Although the amount of space vacant at the
end of the year is considerable, it is a matter of note that some 6.2 million square feet was in fact actually
occupied during the year - the largest square footage so far occupied in any one year. As can be seen from
the table, most new development continues to be in the New Kowloon (mainly Kwun Tong) and Tsuen Wan areas.
During 1972 a further 9.5 million square feet is expected to be completed and it would seem that this,
together with wh~t is vacant (3.3 million square feet) will very definitely swing the balance of supply and
demand in favour of usars. On average a million square feet of accom.~odation will be available each month
of this year, which figure is well in excess of that which hes been available in any previous year. Of
interest is the fact that in the period 1964-1969 the average amount of square footage taken up each month
ii WRs 222,000, while tha corresponding figure for 1970 was 344,112 square feet and that for 1971 just over
/! 500,000 square feGt. In addition to th~ nmount estimated to be completed in 1972 a further 5.9 million
1\ square fr · ~s expected in 1973, and a preliminai:y forecast for 1974 is in the region of 3.5 million squ.'.lre
11,I
feet. F1 :hese figures it would seem that Hong Kong will have a very generous supply of flatted factory
ii
accommod: t in the immediate future.

'
:)
'

Rental aE s:
!: 13.1 etails of the rental enquiry are given in Table XXII. It will be noted that the rental index
Rdvanccd 12.5 points and th~t it is now standing at 56.69}6 above the b~se l~vel at 1968, although the
lat~st in figure is only some 8.76% above that for lnst year. The area which has experienced the lnrgest
increase suen Wan/Kwai Chung which is now 87.64% above th~ 1968 level. In those cases where rents were
actually increased during the year, Tsucn Wan/Kwai Chung also came off badly with an average increase of
67.9o/fo as against the overall avernge increase of just under 35% (column (vi)). However, rentals for flatted
factories in Tsuen Wan/Kwai Chung were very depressed in 1967-68. Even now, as can be seen from column (iv),

12
''
 the average rental p.ar square foot for both ground and upper floor accommodation, a't 11 vuu"'"' .......~
66 cents respectively, is considerably below those for the other areas. However, to some extent
this is due to th& much larger (about double) average unit size, for size is of course a factor
which influences the amount of rent p9id. It is also of interest to compare the average rental rates
per square foot for 1971 with thos~ for 1970, viz.:
i.tion
nmount
·e feet
!View, Ground floors $1.18
m
tre Upper floors 81¢
ll't?
;ha With the very gen~rous supply of flatted factory accommodation expected to be available this year and
tually in 1973 it would aeem thct rant~ls in this fi0ld are unlikely to be maintained at existing levels.
'rom
s.

and
th

th

~re

ting and Valuation Department,

bruary, 1972.

~st
't:!

ted
v)'
13
 PROPERTY REVIE'W 1972

Domestic accommodation, ia terms of wdts pro'fided, b7 llllin

eourcea of supply, built in the metr0poli tan area dunng tbe
7eua 1965-1971, vith eetillllltea for 19?2 and 1973.

PRIVATE PtJBLIC
Government • Gr&ad
Large Medium SC".all Tene111Cnt aorkers' Total Housing Housing Other • low cost
lesettlemeai Total
House a flats !la ts floors quarters Private Authority Society societies eatatea hblic
'Total
flats
bouaing
(ii) (Hi) (iv) (v) Cvi) {vii} (viii) (ix) (x) (xi) <ni) (xiii) (xi•) (xy)

23 1,083 1,1+53 l+,}08 20,739 196 27,802 1Sl' 4,817 346 },.,,,. 15,019 25,689 ,,, ..,1

19 1,114 963 6,310 21,902 748 31,056 241t 1,294 261 ft58 19,,i.1 21,598 52,65'+
29 349 467 3,261 13,200 139 17,445 lt16 1,731 305 1,982 28,282 }2,716 so,161
3 301 125 4,210 5,392 15 10,046 2,999 934 0 6,?Y! 12,890 23,5'0 33,6o6
? 55 393 2,631 4,225 1+53 ?,764 1,430 0 0 8,62o 10,832 20,aaz 28,646
21 210 476 4,212 6,194 27 11, 11to 5,740 1,542 0 4,314 i,829 13,1+25 24,565
52 516 904 5,307 5,)43 120 12,242 1,775 1,226 0 9,258 14,847 27,106 '9,)48

17 519 646 4, 153 11,943 263 17,542 2,o6o 1,720 152 4,34? 14,699 22,978 lto,520
•
Jaa. -
i 1972
~\1 ..
'+7 469 1,569 9,238 5,490 0 16,813 0 0 200 6,360 lf,595 ,,,,,, 2?,968
Jal. -lh. 11 498 1,501 5,881 2,927 10,818 0 8,727 7. 162 15,889 26,?0?
' 1972 0 0 0

58 967 3,070 15, '119 8,417 0 27,631 0 0 200 15,o87 11,757 27,ottlf ,..,675

197~ 11 ,,,889
'·~
1,256 ., ,531 17,469 3,730 0 23,997 2,049 2,680 0 5.906 }7,886

Note: • Hong Kong Model Rousing S0<:iety,

Hong Kong Settlers Rousing Corporation Ltd.•
Hong Kong Economic Housing Society.
 DISTRtlUTION Of PERMANENT DOMESTIC. ACCOMMODATION SY MAIN SOURCES
Of SUPPLY !N THE ME1ROP0Ll1 AN AREA AS AT 31st DECEMBER , U71 1

GOVERNMENT LOW-COST HOUSING

RESETILEMENT ESTATES
c'2,700 l
'211,000)

HONG KONG HOUSING SOCIETY

( 20,1 () 0 )

HONG KONG HOUSING AUTHORITY

< H,900 >

RESETTLEMENT COTIAC:E AREAS ---b1b·3~1L::=========-_.liic::===:::::==l1 ·~·~1.~

J·
GOVERNMENT QUARTERS
<l,000) ( 11,1 00 )
PRIVATE
\

PRE-WAR C U,100 > POST-WAR ( 2 69,900 )

I
l l I I I I I l
·-r·
E MEDIUM SMALL
1
TENEMENT LARGE MEDIUM SMALL TENEMENT WORKERS'

e ec~
s FLATS f~TS FLATS FLOORS 0.UARTER'S

6 8
C'50l \ 1,3i0 t CHU

8 ( 6iO>

0 1'17,000

~)
 OISTR18UTIOH Of PERMANENT DOMESTIC P.CCOMMODATION SY MAIN SOUR!;ES
Of SUPPLY IN THE METROPOLITAN AREA AS AT 311t DECEMBER , 1171 1

GOVERNMENT LOW-COST HOUSING

RESETTLE.-ENT ESTATES
<42,700,
(219,000)

HONG KONG HOUSING SOCIETY

( I0,10 0 ,

HONG KONG HOUSING AUTHORITY

( 34,900 )

GOVERNMENT QUARTERS
( 11,100 )
PRIVATE
( 2 96,000 )
\ 4 , .••,.

PRE-WAR ( 26,100 ) POST-WAR ( 2 H,!JOO ) •

I
I
~GE
I I I I I I I
I
I
TENEMENT
I
,.
ME 0 I UM SMALL TENEMENT HOUSES LARGE MEDIUM SMALL WORKERS'

~
ee e
~TS
I
FLATS Fl6TS FLATS FLATS FLATS FLOORS QUARTERS

6
8
)
SO) < µso > (150) ( 650>

64,700
.
t77,000

I
 PROPERTY REVIEW 1972 hblt IU
lpara. 2. t.. >
DOMESTIC ACCOMMODATION i!UILT BY PRIVATE OEVELO~

I NUMBER OF DEMOLISHED I VACANT UNITS IH THE METROPOLITAN AREA

11.oao
II NO. OF UNITS BUI LT

I31 NO. OF UNITS DEMOLISHED

-·- NO. OF UNITS VACANT

25,000

20,000

.-
...
•
::;,

ti.
0
15,000
0
i ...<
Ill
0
x
...- ...""
•
to.ooo
Ill
w -en...
JC

""

5.000

0
1972 1S'13
 Table lV
(para. 3.1)
PROPERTY Ri:;VI:.;I'/ 1972

UNOCCUPIED DOMZSTIC ACCOMMODATION SURVEY

SUMMARY

(i) (ii) (iii) (iv)

Floors/Units Built No. of floors/units VACA?~T January 1972 ;:, of total

Occupation
Permit vacancy
No. Kowloon
New (4,203)
Issued Total

*Before Januar. 1971 *446 *1 042 24.

Janu:r 1971 8 2 7.12 0 2 8
1971 288 2.35 4 4 0 0 8
1971 1 092 8.92 2 0 o. 1
1971 747 6.10 11 1 20 o.48
1971 1, 123 9.17 1~ 1 69 1.64
; 1971 789 12 1 1 •
f 1971 12 21 2 16 12
ust 1971 1 048 28 12 4 24
":' tember 1971 1 .27 86 1
ober 1971 1 11.4 22
~mber 1971 1 699 1 .88 4.4
ember 1971 1,338 10.93 555 97 528 9 1, 189

Totals 12,242 100.00 2,089 890 1,o68 156 4,203 100.00

Percentage
~ 49.70 21.18 25.41 3.71 100.00

* These figures include premises on the VacantTen~m~nt Register

which have become unoccupied since they were assessed to rates.

•
 (i) (ii) (iii) (iv) (v)
•
Eetimated No. of \!Dita Estimated No. of unita
Mo. of uni.ta No. of units to be availa~le for
DIS!RIC'l' VACAft VACANT to be -::ompleted
. January 1971 JanWU'J 1972 during 1972
occupation during 1972
(iii) + (iv)

lions Kg
We at 151 220 1, 130 1,350
Sbeung Wan 157 116 856 972
Central · J6 30 212 242
~

Wan Cbai 208 372 1,534 1,906

Hid-levels & Pait Fu Lam 191 278 1,496 1,774
Peak 97 35 236 271
Tai Bang 79 171 1,807 1,978
North Poiat 1,7 536 4,866 5,402
Sb&u lei Wu 15 24; 1,616 1,859
Aberdeen 2 28 281 309
South 13 '6o 20} 263

HONG KONG 1,086 2,089 14,237 16,326

Kowloon
Tai• Sba 'faui 204 117 237 354
tau Ma Tei 418 308 904 1,212
Hong ltok 365 1'10 601 711
Rung Boa 1+15 19, 1,688 1,881
Ho Mu 'fin 24 162 986 1,148

ltOWLOON 1,426 890 4,416 5,306

Nev Kowloon
Cbaung Sha Wan 70 576 5,593 6, 169
Sbak lip Mei 6 3 0 3
Kowloon Tong 39 78 312 390
1,125
Kai Tak 148 292 8}~ -
Ngau Tau Kok lt-65 75 724 799
t+4 60 1o4
Lei Yue Mun 9
NEW KOW'..OON 1,o68 7,522 8,590
737
TSU.Di WAH ~ 156 1,456 1,612

KE'l'ROk'OLI 'l'All 3,453 lt,203 27,631 31,834

 7,000
<para. 4·1 >
HUMBER OF DOMESTIC AVAIL AILE FOR OCCUPATION
& THE NUMBER OCCUP! ED DURING HU

[ ] COMPLETED IH 1971

6,000
~ VACANT AT JANUARY, 1171

II OCCUPIED IN 1971

s,ooo

...
tit 4,000
z
:::>
~
0
Oc
w
CD
a J
:::>
z

. ',

1.000

HOUSES LARGE MEDIUM SMALL LARGE SMALL WORKERS'

FLATS FLATS FLATS TENEMENT TENEMENT QUARTERS
FLOORS FLOORS
 Table VI (~)
(para. 4o1)
CccupancJ trends by domestic classifications

•
•
 PROPERIX REVIEW 1972 Tat.le 111
c .." •••• ,
f!RlllURI OM ACCOMMOPATI 01!

•• · • • •• • •• • ••• • ••• TE•«•DT '1.00RS

- · - · - SMALL FLATS
- - - - - - - LAR81 & lllDtUM FLATS
ALL CLASSIFICATIOllS
1
(INCL MOUSIS a WORIERS
OUARTIRS )

10
tH6
,,.,. 1111 1HI ...,. 1t71
 Purpose for which premises built

( l.. J\ (ii) (iii)

Initiall Built
For Owner- Total
% of total
For Sale To Let Number built
Occupation

,__ __;;H;.;;,c;;;:i;;:...;..;K;.;;;.on;;;;.;e;:i...-_ _-w-_ __;4...i...;..8i...;8;;___+---4..:..4;.,:.3:.___ J 157 5, 478 '.! 44__.o7__5__!

,._ _
Kow
__1_oc_n_ _ ,_--11r----'L~8_ _,.___17_2 i 1.?__ .___ f __2_,1_55___¥.,.1_- - .__1..._
7 •__6_0_--1
3 1 <?2> 1
__ Ij __
3 1 20.!1.__. 1
1 26 2 1
New Kowloon 11 I 107 48
~-T-s_u_n_W_u ____ ~~,~--.--,-,~--~-,--_·--,o---1__ ~=L_1,~1 ] _TI_.4_4___

-+----~-7~;.--~~~-~....__--Sa---- l
11

__:_mer_~~~-PO_n_t-:-:-:faJ-i--!r--1:~~:: ::~: .t-~~

'l'able "./III (b)
(paran 5.1)

., Too small a percentage t.o be recorded~,

 (para. 5.1)
PROPERTY REVIEW 1972
Occupation of private domestic accommodation
at the time of valuation for rating during 1971
according to price categories

AREA: METROPOLITAN
(i) (ii) (iii) (iv) (v) (vi) (vii)

Total verage No. occupied

Purchase estimated No. occupied No. wholly
Price Range No. urchase solely by by owner
valued & purchase price wner and family and part sub-let let
(actual or price
estimated) analysed
$ $ No. % No. % No. %

to " 20,000
~ 171 3,201,000 18,719 120 70.18 4 2.:;4 47 27.48
30,000 1,568 40,828,673 26,039 1,088 69.39 39 2.49 441 28.12
·Ol - :; 40,000 2,865 101,349,500 35,375 1,815 63.35 124 4.33 926 32.32
. >01 - ?; 60,000 4,261 206,028,912 48,352 2,558 60.03 166 3.90 1,537 36.07
"'
f.. xn - ~noo, ooo 2,090 151,001,925 72,250 1,160 55.50 53 2.54 877 41.96
~ )01 - $200,000 789 107,410,400 136,135 520 65.91 l 0.12 268 33.9.7
'VCr $200,000 229 70,083,000 306,039 90 39.30 139 6o.?O

Total 11,973 679,903,410 56,786 7,351 61.4o 387 3.23 4,235 35.37
 • Number of units built in 1971 by price brackets
I
AREA: MErROPOLITAN '
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix)

$20,001 ~30,001 $40$00~ $60,001 $100,001

Classification Up to to Over
320,000 to to to to $200,000 Totals
$30,000 $40,000 $60,000 $100,000 $200,000

Houses 0 0 0 0 0 2 50 52

Large flats 0 0 0 0 0 51 465 516

Medium flats 0 0 0 0 0 728 176 9C4

• ,.. ~,_ flats 0 3o8 877 1,617 1,730 775 0 5,307 .

-
:; tenement floors 0 0 38 998 645 4 0 1,685
-
1 tenement floors 0 810 843 1,831 173 1 0 3,658
- 0
:ers' quarters 0 0 112 8 0 0 120
:::

Totals 0 1, 118 1,870 4,454 2,548 1,561 691 12,242

%of 12,242 0 9.13 15.28 36.38 20.81 12.75 5.65 100. 00

 PROPERTY fu.\TIEW 1972 Table XI (a)
(para. 6.2)
Summary of Exclusion Orders
gazetted during the fifteen years 1956-1971

(i) (ii) (iii) (iv)

l
Years No. of Orders Approximate No. of
Buildings Involved
Compensation
Awarded
<I
I I
'. 't
$ . I
1956 69 195 3,566,120 :I
1957 120 316 8, 127,624 p
1958
1959
150
83
442
220
13,965,839
9,894,507
... ::

1960 115 377 16,243,444

1961 270 778 33,200,855 *
1962 497 1,370 74, 150, 095 *
1963 445 1;172 68,032,257 *
S4 885 2,3o8 137 ,591, o6o *
;5 200 507 27,995,118
66 25 64 3,052,616
57 17 50 2,653,341f
58 11 24 1,159,832
·59 27 62 3,234,974
70 101 290 15,315,933
"

---
71
Totals 3~
216
231 8,720
545

I
31,8$31,799
450, C65,417
- -
--,
i==~A=v=e=r=a~~=e~=a=~=·9=5=?=-=70=::~;:;::=:.;:=::=====2=0=1==:.=:=~===·~~~-
. (b) J_
L Averar;es 1956--71 202
 •. PROPERTY REVIC.W 1~1Z Table x 1 ' b >
,,.,., f•l J
UliLUSIOB ORQIRI fAZl!llp ,QU!ING THI
• SIXTEEN YtiAf!S 1911-1911

.....

I I

It I \

• I .
• 1.111
•
•
::.
z

I
/', I \'· '

II \
/ \ NO.OF

I · 1~•
//~//
, V' /
\, /
/
_/ \ , / " NO. O• ORDERS

~ .

1L.~-------~--~--~--~--~--~---~_..,.~~;====~==fc::===:;:_~-r-----..,
~---·-- _/~
_
'9H 1Hf 1951 tlSI tHO tlH \112 1963 196' Ulil 1966 1H7 tHI UH 1970 1971
Y f J. R
 Site Areas in Sq. Ft. of buildings
excluded under Landlord and Tenant Ordinance

(i) (ii) (iii) (iv) (v) (vi) (vii)

Hong Kong Kowloon Kowloon Combined Grand
Hong Kong Island Running Yearly Running
Years (incl.. New
Island Running Totals Totals Totals
Kowloon)
Totals
··-·-· ·-
I.
~----- ·-- --- --
1947-56 It
;1
- 358,594 - 428,823 - 787,417
1957 ' 150,562 509, 156 191,713 620,536 342,275 1,129,692
t

1958 173,a:>3 682,219 2921342 912,878 465,405 1,595,097

1959
1960
85, 211
125,839
767,430
893,269
172,275
293,520
1,o85, 153
1,378,673
257,486
419,359
I 1,852~583

2,271,942
1961 I 239,916 1,133,185 696,700 2,075,373 I
'
936,616 3,2o8~558

962 633,835 1,767,020 997,517 3, 0721890 1,631,352 4,839,910

I
i963 611,530 2:378,550 583,505 3,656,395 1, 195,035 6,034,945
I
•
1964 I 1'272, 732 3:651,282 1;282,757 4,939, 152 2,555,489 8,590,434
9, 123,053
'

1965 354, 149 l+, 005,431 178,470 5,117,622 532,619

1966 45,156 4, 050,587 19,695 5, 137 ,317 64,851 9,18?,9d!.

1967 41,034 4, 091,621 7,596 5, 144, 913 48,630 9,236,534

1968 19,359 4, 110,980 11,611 5, 156,524 30,970 9,267~5d!.

1969 38,oo4 4, 148,984 28,093 5,184,617 66,097 9,333,601

1970 149,509 4,298,493 134,715 5,319,332 284,224 9,617,825

1971 332,328 4,630,821 247,483 5,566,8':5 579,811 10, 197,636

•
 PROP £RTY REVIEW 1972 (para. 7.1)

IXJMESTIC RZNTJ.L MOVi:.M.r::NTS

 Tab.le X.Lll \ c J "'
PROPERTY REVIEW 1972 (para. 7.1)

DOMESTIC RENTAL MOVEM.l!NTS

r
Classification: SMALL FLhTS
(i) (ii) (iii) (iv) ( v) (vi)
Average rental Rental increase between
inclusive 1970-1971 tabulating
Average Rental Index for
of rates only those cases where
Cases size
AR.i5A
effective December 1971 rentals have increased
tabulated
area
per per
1968 1969 1970 1971 Cases Increase
month sq.ft.

No. sq.ft. $ $ No. % '

Hong Kong 311 474 612 1.29 100.00 104.Ro 118. 19 134.70 152 28.44

Kowl 481 451 574 1.27 100.00 105.34 117.05 128.24 206 23.43

New oon 234 383 472 1.23 100.00 1o4.38 117.16 129.85 93 27.25

Mm'J, .ITIJ'l 1,026 443 562 '1.27 100.00 105.05 ·117.45 130.64 451 25.93
-
 Table XllJ.. \eJ
(para. 7.1)
PROPERTY Rb~IEW 1972

DOMESTIC R.GNTAL MOV~TS

Classification: LARGE FLATS

(i) (ii) (iii) (iv) ( v) (vi)

Average rental ental increase between
inclusive 970-1971 tabulating
Average Rental Index for
of rates nly those cases where
Cases size
li.REh.
tabulated effective December 1971 entals have increased
area per
month
per
sq.ft. 1968 1969 I 1970 1971 Cases Increase

No. sq.ft. $ $ No. ~

Hong Kong 171 1,266 2,551 2.02 100.00 105.66 127.74 162.00 95 51.56

KO\ 34 1,290 2,619 2.03 100.00 106.10 122.49 164.38 21 46.50 •

;loon 19 1,145 2,299 2.01 100.00 109.64 124.19 163.98 10 63.eo

Mi )LIT AH 224 1,260 2,540 2.02 100.00 106.03 126.61 162.47 126 51.41
 PROPERTY REVI~~J 1972 (para. 7.1)
DOMESTIC Ri:NTAL MOVEMl!.'NTS

SUM?-lARY

METROPOLITAN
(i) (ii) (iii) (iv) ( v) (vi)
Average rental Rental increase between
Average inclusive Rental Index for 1970-1971 tabulating
of rates only those cases where
·r·
t" Cases size
Classi ica ion tabulated effective December 1971 rentals have increased
area
per per Cases
1968 1969 1970 1971 Increase
month sq.ft.

No. sq .. ft. $

tenement 1,340 246 279 1.13 100.00 102.24 110.90 118.22 533

t 1,309 434 385 0.89 100.00 102.oR ·110.69 116.97 471 16.55

Sm:
f'l: 1,026 443 562 1.27 100.00 105.05 117.45 130.64 451 25.93

Me 141
fl 307 798 1,28o 1.60 100.00 107.18 128.87 148.82 36.55

Large 162.47
flats
224 . 1,260 2,540 2.02 100.00 106.03 126.61 126 51.41

4,206 I
100.00 10!: .37 11 l.l..21 134.12 1, 722 31.54
I
 PROPERTY REVIEW 1972 Table XIV
• (para. 8.1)

Shop vacnncies by classifications

(i) (ii) (iii) (iv) (v)

Primary Secondary Arcade, basements & Total vacancy as

upper floors at January 1972
AREA
Effective Units Effective Effective Effective
Units floor area floor area Units Units
floor area noor area

No. sq.ft. No. sq.ft. No. sq.ft. No. sq.ft.

Hong Kong 54 48,023 319 2o4,792 49 46,957 422 299,772

Kowloon 35 23,656 177 101,785 23 8,63? 235 134,0?8

NE wloon 25 17,441 147 1o4,o45 3 880 175 122,'66

•
'.'!an 3 2,845 126 78,435 129 81,280

r·: )OLITAN 117 91,965 769 489,057 75 56,474 961 6:37,496

 PROPERTY REVIEW 1972 \.parao <..;o I /

SHOP . PREMISES
SUMMARY

{i) (ii) (iii) (iv) (v) (vi)

Premises certified Premises VACANT rernises estimated Premises estimated Premises estimated
for occupation January 1972 to be certified to be available to be certified
during 1971 for occupation for occupation for occupation
AREA during 1972 during 1972 during 1973
(iii) + (iv)
I
Effective Effective Effective Effective Effective
Units Units Units Units Units
floor area floor area floor area floor area floor area
No. sq.ft. No. sq.ft. No. sq.ft. No. sq.ft. No. sq.ft.
Hong Kong 475 319,386 422 299,772 699 613,293 1,121 913,065 838 591,584

•· 197 166,515 235 134,078 325 280,989 560 415,067 886 627,322

;rloon 222 135,306 175 122,366 287 201, 123 462 323,489 248 212,860

''!an 211 122,265 129 81,280 206 126,837 335 208,117 264 192,557

M -OLITA..l>l 1, 105 743,472 961 637,496 ,517 1,222,242 2,478 1,859,738 2,236 1,624,323

r ly
average 92 61,956 126 101,853
I 206 154,978 186 135,360
 Table XVI
(para. 9.1)
PROP£RTY REVIEW 1972
SHOP RENTAL MOVEMENTS

(i) (ii) (iii) (iv) (v) (vi)

Average rental Rental increase between
Average inclusive 1970-1971 tabulating
of rates Rental Index for only those cases where
Cases size
AREA Ddcember 1971 rentals have increased
tabulated effective
area
per per Cases
month sq.ft. 1968 1969 1970 1971 Increase

No. sq.ft. No.

Hong Kong 210 571 1,638 2.87 100.00 103.39 112.71 127.05 76 37.38

Kowloon 120 597 1,909 3.20 100.00 106.31 120.64 136.18 25 63.02

ow loon 113 592 1'171 1.98 100.00 102.74 111.61 121+.31 38.22

, Wan 19 638 962 1.51 100.00 111.75 130.95 134.79 3 20.80

JPG~ITAN 462 586 1,566 2.67 100.00 104.39 115.47 129.62 140 43.06
 QO!!!!B!iIAI. omc1 IWILDDWI

iUKKAlt?

(1) (ii) ,(iii) (h} ( y) (vi) ( yii) • (TI.ii) (ix)

Usable area Vl.CAH'f Usable area eatieated to otal uaable area

Uaable area Caable 'l.l:'e• Total w;able Usable area Occupancy December 1971 · be certified for oc:eupation estiaated to be
va<:ant certified for -.-•aavaibble OCC\lpied rat• b •de durin 1c;~2 avaUabl• for
Ilec~r occupation ia 1971 during 1971 1971 1at Jul)' t.o Ple or letting
(ii) .. (iii) c 1•t Janll&J7 to }1.st Decc.11be:-
1910 during 1971 (iv) - (vii) {y} : CM A B Total
}0th June 1972 Total during 1972 1:
1 ? (vii) • (Tl.ii)
I~
sq.ft. sq.rt. isq.ft. sq.rt. ;lb sq.ft. sq.ft. sq.ft aq.ft. sq.rt. aq.tt. aq.ft. aq.!t.

68,,~ 166,2Z7 2;54,585 16o,2?lt 68.-,c 1,,71+ 66,93 ?'t,}11 87,S14 119,659 67,'i7.} 341,804 1'
11, <)(>' 249, 105 261,068 1}9,26o 5}.;91 78,709 22,650 ?O,l+4 121,8o8 21t.ooo }81,600 lt-05,6oo 527,lt-OS
t1~· '
2,966 2,966 -1,651 -55.66 1,}62 },25 4,617 155,4ao 41,000 1%,48o 20i,09'? ·j1•

~fl
15,871 15,8?1 15,871 100.00 1},065 1},065 1},o65

99, 158 415.3'2 514,490 313,751+ 6o.98 78,?09 31,:;86 90,61;1 '200,736 zec.359 602,259 882,618 , ,08}, 354
t \I :

• Tata S1:1t' '?C\li 968 968 335 }l..6o 6}} 633 37.?00 37,?00 38,333
I
Tau l'.a T•i ~5.169 43,118 78,287 }0,023 38.35 5,024 4},?lt-0 48,264 },900 35,82o 39.720 87,961+
Mons Wt -1,006 1,006 1,oo6 1,co6

lOWl.OOll '6, 1}7 43, 118 79.255 29,352 }?.O} 6,66} 4},240 49,903 3,900 73,520 77,li20 127,}23

TS\lil' WAH 1.21+1 ?,247 ?,24? 100.00

ilO!IG t:ONG.
KOlr...IXlli & 1ft2,542 t.51!,1+50 600,992 350,35} 58.29 85,372 74,626 90,641 250,639 284,259 6?5.779 960,C}t 1,210,677
\'SUEN lW« I
Kontbl7 4.,..r~a ~· 3&,:?04 50,083 29,196 47,,77 112,6,c> l!o,OO} 100,890
 iaMe XVIII

COMMERCIAL OFFICE ACCOMMODATION 8UILT BY PRIVATE <para. I CH >

DEVELOPERS I AMOUNT VACANT IN THE METROPOLITAN AREA

2,000

Ill AMOUNT BUILT

-- AMOUNT VACANT

1,500

....
w
"'
~
LI.

"'c
Cf
~
r
Cl

"'
..
Q
z
1.000 l Cl

"'....
~

2:
I\'
en
~ ...
"'""
0
...::c
I

0 1: j
..."'
5·
"'
:E
....
.... il
H1
I•
"'
&I.I Ji.
r

0
~
r
I
I
; ('
.
I .
#

.
I
·I

·~
uu 1970 1971 1912 1913
y E A R
'
.
~

:
'~I~
 Table XIX
PROPERTY R~VI!!::W 1972 (para. 11 .1)
• COMMERCIAL OFFICE RENTALS

(i) (ii) (iii) (iv)

Average rate per month per sq.ft.
No. of exclusive of rates, air-conditioning
No. of and services, of rentals agreed in
Grade buildings tenancies the years (renewal of existing
tabulated analysed te1:1anciGs and new lettings)

1Q6R 1Q6Q 1Q?O 1Q?1 1oh8 1Q6q 1Q?O 1Q71

$ $ $ $
A 20 111 109 102 114 1.64 1.64 2.18 2.98

B 28 155 143 138 131 1.24 1.38 2.00 2.89

c 22 1o6 98 83 74 0.97 1.05 1.35 1.97

Grades
70 372 350 323 319 1.27 1.35 1.87 2.66
A, B & C

.
 Table XI
PROP!:R'l't REVID/ 1222 (para. 12.n

COllMERCIJ.L FLAT'l'EI> FACTORY !IUILDINGS

SUMMARY

(i) (ii) (iii) (iv) ( v) Cri) (vii) (viii) (ixl

I.REA
sable ar .. a
vacant
tsab'ie ar~a Total usable
certified !or area ava\labl"
iJs3.ble area
occupied
I Cccuyar.cy '
rate
Usable area VACANT
~cel!lber 1971
Eati!Mlt•d usable area to be certified uti111&ted total
!or occupation during 1972
usable area
anilable for
g.
DlSTRIC'1'
Deeem~r occupation in 1971 durint i971 1971 For sale or For sale 1at Januarr to lat Jul7 to aale or letting
1970 during 1971 (ii) + Uii) (iv) - (>-ii) (vi .; (jy) Total 31st Dee..a1ber Total during 1972
letting only 3Qtb J~ 1972 (vii) + (viii)
1?72
aq.ft. sq.ft. sq.:t. sq. ft. '.t i:q.!t. aq.~t. sq.ft. sq.ft. sq.ft. sq.ft. aq. ft.

50, 122 50, 122 50, 122 50. 122 462,027 140,018 6o2,045 652,167
I

7, 1l•6 748,643 755,7[59 656, 132 86. 14 23,295

~.3621 99.657 6o7.779 75.717 683,496 783, 15,

-7 •.304 7,}04 ?,yj+ 241,886 218,,11 460, 197 467,501

50,761 i.15,667 466,4?8 306,257 65.66 63,992 96,171 16o, ~71 &25,000 ;.85,000 ,210,000 1,y(O,171

57.907 1 ,214,432 1,272,339 955,085 75.07 94,591 222,663 311,254 I 1,936,692 , ,019,o46 ,955,7,a 3,272.~ "'

4~.07" I
4,971 21:6,837 291 ,&18 287, 941~ 98 •. 67 3,864 3,864 97,496 97.496 101 .360

116,050 690,698 &.16. ?48 295. 'lJ::J 36.65 1o4. 974 511,048 173,595 130,555 y:4, 150 815, 198
121 ,021 977,535 , ,098,556 583,644 53. i3 108,838 Lo6,074 514,912 271,09• 130,555 401 ,646 916,558

115,456 4-::J2,6'.l0 518,056 282,822 )/•.59 142,598 92,636 235,234 228,000 '54,000 ,;&?,000 617,234
'493,315 477,439 970,754 794,999 &1.09 77.f.3) 98, 122 175,755 175.755
532.592 2,234,870 2,767,462 1,457, 898 ' 52.&8 1.222.732 86,832 i • 3v"9 • 564 66o,3J.1 5,S,i.51 2,508,856
i.17 ,;oo 417, 417,500

1,11.1,363 3,114,909 4,256,272 2,535,719 59.58 1,4l<2,963 277,590! 1 ,7c.J,553 8f8, 841 i,109,951 ,, ?19,345

571,363 2,330,464 2. 9C1. e.27 ?,134,655 !

73.56 521,744 245,422· " 767. 172
I 3,306,697 896."45 i.,970,314

1,891,654 7,637,)40 9,528,994 6,209, 103 6,403,321 3,155,m 12,879,209

636,4115 794,083 517,425 1,067,220 525,999 1,073,267

 PlilOPUl'I lc.ti•J.- .,.-
COKHl3lIAL FL.l'l'l'ED FAC!Oat BUILDIJfGS
S 1J K11·• i I

(U.) (iii) (h) { ,,, (vi) <nil C.iii) (ix)

Usable a.rea VACANT iati.. tad 1a.t1able area to b4I certified .&.ti-td tot&l
aa.bl• ana Usable uea Total usable iJaabl• lU"H Occupanc1 Decel!lb«r 1971 ror occupatioa during 1972 usable area
..._ t ca:rti!i•d for area avaUable occupied . :rate aYailable for
n.ce-.r occupation. in 1971 during 1971 1911
For e.ale or for sale
'l•t ul1 to
1at Jll.OU.r1 to }1at aal.• or letting
1970 during 1911 (ii) + Uii) (h) - (¥11) (vi ; (iv) Total December Total during 1972
l•tting cnl.7 30th Jw. 1972 1912 ( Tii) + (Yi.ii)
9q.tt. aq.ft. sq .. :t. aq.rt. % 1:q.tt. aq.!'t. sq.ft. sq.ft. sq.ft. aq.ft. sq.ft.

50, 1zz 50, 122 50, 122 50,122 402,02? 140,018 60Z,o45 652,167
7,140 748,643 755,789 656, 132 86. 14 23,295 ?6.362 99,657 61:>1,m 7;, 717 68},496 783, 153
-?,'.50'! 7,'.50'! 7,JQ4 241 ,8E6 218,311 l+60, 1 '-67,501
... 50,?61 415,667 466,428 "'6,257 65.66 6},992 9(., 179 160, 1?1 625,000 585,000 ,210,000 1,}';U, 171
51,9tfl 1,214,li}! 1,212,}39 95;,o85 75.07 9'+.591 222,663 }17,254 1,936,692 1,019,046 ,95;,7}8 J,212.m

• ft,971 286,837 291,8o8 287,944 98._67 ,,864 },864 97,496 97,496 101,}60
116,0'° 690,698 8o6,?48 295,?0C 36.65 1o4,974 406,074 511,o48 17}.595 1}0,555 '°".
401,646
1.50 815,198
121.021 9??,535 1,096,556 583,644 53.1, 108,838 406,07'! 514,912 211,091 130,555 916,558

115,4.56 402,600 518,0.56 282,822 54.59 11+2,598 92,6}6 2}5,2Yt 228,000 ~;i..ooo ;;82,000 61?,ZY,
49},}15 1+77,4)9 970,?5'+ 794,999 61.e; 77,t.33 98,122 115,755 1?5,755
........ '1'au lak 532,592 2,2}4,81o z.76?.4'2 1,457,a98 51!.68 1,2.?2,7}2 86,8}2 1,309,561+ 660,341 5}8,451 2,508,856
X..i tu Ihm 41?,500 1+17, 41?,500
It.I KOW'l.OOtl 1,141,36} },114,909 4,256.272 2,535,719 59.58 1,lil+Z,96} 27?,5'):) i,?ZC,55} 8t8,8'+1 1, 109, 951 1,998, 3,719,}1+5
fSUDf \IA1f 571,363 2,}}0,li64 2,901,en 2.1~,655 ?}.56 521,74'4 245,42!'· 767, 172 '. !'i06 •697 896,L.1f5 4,9?0,314

MftliOJ'OLl'l'IJl 1,&:J1 ,6511 7,6}7,'40 9,528,9914 6,209,103 65.16 2, 168, 1}6 , , 151. 755 3,319,891 6.~}.}21 3,155,997 12,879,209

MoathlJ 4v~u·age 6~,445 ?94,o8l 517,425 1,067,220 525,999 1,073,267

 rnvrc.n11 n:c.vtc:.n 1:::t1~ Table XXI
fpara, 11'•1 >
FLATTED FACTORY ACCOMMODATION BUILT BY PRIVATE
DEVELOPERS & AMOUNT VACANT IN THE METROPOLITAN AREf:.

II AMOUNT BUil T

-•- AMOUNT VACANT

Q
...
Id

...""
z

"'
Ill

0
...""
·~.
4(
s
....
en
l&I

2 ./

1965 1966 1967 1968 i96S 197t'.' 1911 U12 fS7J

V E A R
 Table XXII
PROPERTY REVIE'.f 1 <172 (para • 13 • 1 )

COMMERCIAL FLATTED FACTORY REH'rAL HOVE!·IENTS

I
~ !'
l I
(i) (iii) (iv) (v) (vi) !

Average rental
i.verage exclusive of Rental increase between
size :mte:S, per month, i.
Rental index for 1970-197'1 tabulating
Cases usable area per_sq.ft. only those c.sses r:here
tabulated December 1971 rentals heve incre2sed
l Ground Upper Ground Upper
1
Hong Kong
-· r
l
~. 6~
l-Jo
I_ Floor

sq i't sq.ft.

'~~26~ 4,786-1--1.32
3 ~)
0.79
r- I I
·~oo_._00~_71131.11: 145.07
11
C::-.ses

!fo.

j!,_.!_ _ 31
Incraaae

23.77
I

Ko.,,..iloon
--11---
;I 1 _J'I 2,265 2, 792 ! 1.48
.,.r--~ -.--,i---
I o.gP JL1100.oc1112.23 i130.041_14_2_.55
p I I I
!i 48
·-.,-------.-
35.8~ 1
Kowloon 28:; i 4, 4,023 lj 1.16 o.80 i1100.w•123.59,150.73·161.13 i1 7~ 32.78 I
Tsu en 'nn 39 r9, 714 8, 908 ,-0-.-7-7-.-+--0-. 6-6-~~~0. OC 123--.-12 1~5. 61 187. 5~~---1-0-~·-9"-:1--+
! IETRO:POLIT,\i:i 1 I 3, 978 4, 185 1.18 0.81 100.00 122.20 144.07 156.69 164
 NOTES ON SURV.i!i'YS 7 D.i!."'TAILS OF RENTAL ENQUIRIES AND INFORMATION ON
STATISTICAL BASES EMPLOYED IN THE REVIEW

A. GENERAL

(i) Scope of review

The review, as on previous occasions, relates to private building development in the
urban areas of Hong Kong, Kowloon and New Kowloon, and the rated portion of the New Territories,
which is the strip running along the coast from Lai Chi Kok to Castle Peak. These areas collectively
have been termed the "metropolitan area" for the purpose of this review. The review, other than in
relation to the supply of new domestic accommodation, does not attempt to cover accommodation
provided by the Housing Authority, the Housing Society and similar agencies. Neither does it cover
Governm~nt Low Cost Housing, Resettlement or public building works of any kind. Its purpose· is to
examine and explain the position in the private sector.

(ii) Review period -

The report covers the calendar year 1971 and the base date for rental movements generally
is December 1968. Reviews of vacant domastic premises prior to 1966 were compiled on the basis of
March in one year to the end of February in the year following.

Bo PROVISION OF DOM..::;sTIC ACCOMMODATION (TABLES I - III)

Demolitions are mainly in respect of pre-war houses which also include ground floors and
basements in tenement houses basically intended for non-domestic user. However, such premises are
usually the subj3ct of considerable domestic occupation. In an interpretation of Tables I, II and
III it should also be borne in mind that units of accommodation vary considerably in size, particularly
in relation to pre-war units which generally provide a much larger area of accommodation per unit than
their post-war counterparts. In ~egard to the Etock of permanent domestic accommodation - Table II -
it should be noted that in the private sector premises have been tabulated according to the use for which
an occupation permit was issued and no check is made on the current use of such premises. It is known,

i
 .11. PtJ\;;11\..i..L.A Z'1. \. VVJ.J.'"" u • /

of course, that in certain areas a considerable amou~t of domestic accommodation is used for non-domestic
purposes. From an ~lJ.43is ~t; a surv'Y cf!U"rie.4 out.: in .1969 it. would seem that some 4, 400 ground floors
and basements in pre-war tctneme~t ll~uses are used solely for non-domestic purposes, but as these are
included in other published figures, and the position is not known in the post-war sector, to avoid
confusion no deduction on this account has been made from the figures given in Table II.

C. REVIEW OF OOMESTIC P~ISES lTABUS"IV - X)

(i) Basis of inclusion -
The review examines in detail new buildings certified by the Building Authority for
occupation during 1971 and to this information i.s added information on older premises previously
assessed to rates which are noted on the Vacant Tenement Regist~rs of the dupartment in connexion
with refunds of. raies. Such figures are suitably pruned to disregard items such as empty buildings
awaiting demolition.

(ii) Vacancy periods -

·A line has to be drawn somewhere, and vacancies are reckoned in months according to
· the time of inspection in rel.a ti on to the mcnth in wh5.ch th~ occupa·:ion per:ni t tins issu~d and: ·not the
precise date of that permit. Similarly no distinction is made betw ..Hrn prt:mi.ses found vacant at. the
end or b(~ginni.ng o::: a month.

(iii) ~upation of private domest~c accommodation -

The figures tabulated in Table IX relate to new domesti.c premises valu.::d for rates during
1971. The figures are aggregates of those recorded throughout the year and no attempt is made to
re-check them or incorporate changes following valuation, neither do they cov<:r th-= extent to which
premises wholly let are also sub-let.

(iv) Purchase prices -

Similar premises realise different amounts depending on the date of the transaction,
negotiations, the mode of payment and so on, but in an exercise of this nature it is necessary to
sort premises into broad price ranges and as far as possible this has been done on ~h7 ba~is 0£ sales
brochure cash prices at the time of valuation while, in order to complete the class1f1cat1ons,
figures are estimated for those built for letting or owner-occupation. Hjghly priced terwment floors
(Table X) refer to premises suitable for non-domestic user which also provide domestic accommodation.

ii
(v) Pressure index (Table VII)
It is assumed that a certain fixed p~rcentage of the accommodation built will be taken up
each month ~fter completion. The greater the percentage, the higher is the pressure on accommodation.
It is further assumed that, in mathematical term~, vacancies - in terms of percentages of completions
in a month - are given by the r~l~tionship:
V - ... 100 - pT

where V = . :vacancy pi::rcentnge

T = time in months after completion

p = a constant (the pressure index).

To simplify calculations a period of six months is taken to find th-a value of "p". However, it should
b~ not8d that some domestic units may r&rnr.tin vacant for more than six months after completion and
th0r.::fore the index is good only for comp.trison purposes. Moreovar, the vacnncy position of a domestic
·unit is ascertnini.?d by physical inspection only. Very often a ti::nancy co~nces before the premis~s
nrc a·ctually occupiod, or in th.:: case of pre:nise:s bought for occupation, agrettment to purchese may bG
re~~hed long bofore the purchaser moves in. Also thQ time for decoration, which may very among
differ~nt cl~ssific~tions of accommodation, is ~ contributing factor to th~ time betwe~n completion
and occupl"..tion.
Do DOMESTIC RENTAL ENQUIRY (TABLES XIII (a) - XIII (f))

(1) Basic Sample

(i) Premises included - Permanent, pos.t-war, privately rented domestic accommodation in the rated
metropolitan area.

(ii) Premises excluded - Pre-war, tempor.'U'y, GovGrnment and Government eided, work~rs' quarters etc.
(iii) Sample - 2J6 of private post-war domestic accommodation basud on estimate of number of such
units as at 31st December 1968.
.. (iv) Stratific~tion - (a) By classifications:
Small tonem.ilnt floors 1,450 (36%)
Large tenement floors 1,400 (34%)
Small flats 1,050 (22%)
Medium flats 350 ( .5%)
Largt) flnts 250 ( 3%)

4,500

Houses were excluded as so few sre rented.

(b) By a.rclas:
In proportion only to total number of r~ting assessm~nts covering both
domestic and non-domestic premises. No breakdown of assessm~nts was available.
(c) By age groups:

Four groups Wdre chosen bused roughly on domE:stic building costs compiled.
11
A" up to 1955 6 years
"B" 1956 to 1961 5 y.aa.rs
"C" 1961 to 1966 5years
11
D11 1966 to ·196R 3 years
Selt:ction was directed to tabulnting two cases in group "C" for every one in
groups "A", "B" and "D". It was, however, very difficult to achieve this by
manual select~on h<~ving regard to the overriding stratifications an~ the final
result was: ·

Group A 690 ( 15.3%)

Group B 777 (17.3%)
Group C - 1,958 ... (43.5%)
Group D 1,075 (23.9%)

though this varied considerably as between districts and classifications, the

m3in difficulty being in the first two groups.

iv
 Appendix A (Cont'd.)

(v) Scl0ction - To meet the above requir~ments selection hud, to a large extent, to be deliberate but
officers were advised to select on a random basis within the following guidelines:

(a) Only one case t.:> be .selected in each "bank" of ten in the departm..,nt's loose-leaf
vnl u:: ti on record books.

(b) Not more th~n 15 cl.:l.ses in any one building in the case of t~nement floors o.nd
sm::ill flnts.

(c) Nut more thnn ten cases in any one building in the c&se of medium flats.

(d) Not more than fiv8 cases in any one building in the case of large fl~ts.

(vi) Rents - (a) Rent was defined as inclusive of rat~s, excluding service charges and where
ronts did not Record with this definition, additions or deductions were made
by professional officers.

(b) Rents for 1968 were tGken from the returns a~de in connexion with the 1969-70
annur:l valu=ition and random checked in 1968. I

(c) December 1969 rents were all obtained by technical officers by personal
enquiries and were .:::xamined by professional officers to eliminate obviously
'
wrongly recorded or reported figure. No attempt was made to eliminate high
or low cases.

(2) Deletions and additions for D8cember 1971

(i) A tot2.l of 298 cases or 6.95% of the sample has been deleted:
Small tenement floors 116 (3996)
Large tenement floors 69 (2~~)
Sm:tll flats 72 (24%)
Medium flats 26 ( 9%)
Large flats 15 ( 5%)
298

v
 Appendix .A (Cont'd.)
.
The main·reason for deletion is premises b..tcoming occupied by owners. Others were found vacant in
December 1971 or occupied for non-domestic purposes. In a few cases the premises have been divided
into partsaJJif let septu·ately, while scime medium and large flats have been re-let with furniture.

(ii) 2% of the estimated numbur of private domestic units built in 1970 were added to the original sample.
These h~ve been s~lectod from tho districts where the bulk of the 1970 developm~nt was located end
proportional to the numbvr built in w&ch classification:

Small tenement floors 65 (30%)

Large tenement floors 60 (27%)
Small flats 78 (36%)
Medium flats 10 ( 5%)
Largo flats 5 ( 2%)
218

E. SHOP Af:NTAL EN((;UIRY (TnBL.i!: XVl)

( 1) IJasic Sample -

(i) Premises-included - Ptrmancnt, post-war privately rented units having no att3ched living
accommodation, oth~r th~n a cockloft, with effective areas within the g~neral range 500-700
square feet in the r~tbd metropolitan tu'Ga. (N.B. Premises with-cock.lofts were ~voided
where possible, but bccnuso of numbers some eventually had to be tabulated).

(ii) Premises excluded - Pr~-w~.r, temporary, Government, premis~s held on long leases and/or
subject to the p~ymant of construction fees or oth~r premia. (N.B. In some areas it was
only possible to mc.k~ up th~ sample by including premises on long leases).

(iii) Sampl.: - V~ry little inform'"ttion is Nadily available on the number of shops in the V·?.rious
areas. Officers ware, thcr.::fore, :-l.sked to provide 20 "prime,ry" shops and 20 'isecondary"
shops in e::.ch of 23 rating arcn.s. In the E:!Vcnt it was found possible, within the d.:ifini tions
given above, to tabulate only 20 shops for aach area i.e. a total of 460, cov~ring both primary
and second..qry retail positions.

(iv) StrRtification - By districts with a restriction as to only one shop in any one building.

vi
 (2) Deletions and additions for December ~

(i) 32 cases have been deleted from the sample because the premises were either vacant in .vc'-v···-
1971 , occupied by owners, subutantially altered in si::.e, used for non-retail business pU!~poses,
or re-let with the payment of a premium or construction fee.

(ij) Two shops in each of the districts where shops falling ~~thin the above limitations were built
in 1970 have been added to the original sample. A total of 28 shops has thus been addec.

.r..... •
-----------·--·----------
C01"ft:iERCL>L OFi'ICE RBNTii.L ENQUIRY (TA.BL.I!: XIX)

Offices come in all siZ;?S antl ,~ery often c:n exp:.ry of a lease the space re-let is !liffP.rrnt.
due to the ease with which offices can be re··partition~d. Lottings are usually on leases of two to
five years ar.d sometimes at risir..3 rents. It is conside1ed tr.at a d.istorted picture would result if
an index of office rents is compi::..ed in the sam~ way n.s t'or other categories of a.ccom:'lndatio':"!.. To
provide some informr~tion on of fie·:: rentals, average ratef:' per square foot cf new rents (re~n,:gotiated
tenancies or new lettings) are found from a sample of office buildings selected as f ol!.ows:

(i) Premises included - Permanent, post-war private:y rented office accommodation in

the rnted metropolitan area.

(ii) Premises excluded - Pre-war, temporary, Governmi:;;nt, buildings where most of the
offices are known to be let to related companiec,.

(iii) Sample - At 1st October 1971 there were about 140 office buildings in the main
commercial districts' of Central, Sheung Wan, Tsim Sha Tsui and Yau Ma Tei/Mong Kok.
A 50% sample was considered.feasible.

(iv) Stratification - By districts and grades in proi>ortion to number of buildings:

District Grade A B C Total

Central 15 15 12 42
Sheung Wan 5 10 15
Tsim Sha Tsui 1 4 5
Yau Ma Tei/Mong Kok 4 4 8
20 28 22 70
vii
.. Grade D buildings nave not been included because most of them are scattered outside the
above district& and very. often the rents are influenced by the presence of other types
of user in the building.
(v) Selection - On a random basis but direction was given to avoid the sample being dominated
by buildings owned by the same landlord.
G. FLATTED FACTORY Rdf?AL at((UIRY (T::..BLE XXII)

(1) Basic Sa°!Ple

(i) Premises included Permanent, post-war privately rented flatted factory space in the rated
metropolitan area.

(ii) Premises excluded - Pre-war, temporary, Government, premises not designed or adapted for
factory purposes. Premises built by owners for own use. Buildings erected for very
specialised users.

(iii) Sample - Insufficient information on the amount of such space was readily available.
Rough estimate by officers of the department of units actually rented in the metropolitan
area at 1st December 1969 was 3,000. A 1/6th sample was considered feasible i.e. 500 cases
to be tabulnted.

(iv) Str!ltification - By. di.stricts only, roughly in proportion to estimates made of number of
units actually rented in December 1969.

(v) Selection - Efforts were made to include ground floor premises in proportion to the total
number of upper floors in each district, and officers were instructed to select on a random
basis, avoiding where possible cases where the rents were 11 pegged 11 by long leases. Nothing
was laid down as to size; but officers were asked to exclude premises where the usable areas
were substr.ntially less or substantially more than the norm of the locality.

(2) Deletions and additions for December 1971

(i) 63 cases have been deleted, the majority being vacant in December 1971 •.Oth~rs have been occupied
by owners or structural alterations have been carried out to divide or enl:,u'ge units.

(ii) It was estimated that at December·1971 559 flatted factory units built in 1970 were subject to
tenancies. About 1ft)th of these - 92 cases - were selected and added to the sample.

viii
 DEFINITIONS OF TERMS USED IN THE REVI£~

Where referred to in this report the terms shown below, unless otherwise indicated, have the
general meanings hereto ascribed them.

(i) Areas of premises:

Areas are in square feet. In this re;>ort reference generally is to "effective area.0 , sometimes
called "cc-,rpet ~ea", that is the usable internal area of the premises excluding parts designed for use as,
kitchens, lavntories, bQthrooms, open balconies, servants' quarters, utility are!iS, etc. In respect of
non-domestic accommodation reference is more usually made to "usnble aren" but in practice this corresponds
f.~irly closely to "effective areas" as used for rating purposes. "Usable nrea" is defined by the Building
Authority as "the aggregate of the are3s of the floors in a storey or n building excluding any staircases,
public circulr:tion spo.ce, lift landings, lnv,:itories, waterclosets, kitchens e.nd any lift, airconditioning
system or simil"IT services provided for the building".

(ii) Domestic classificntions:

(a) Small tenement floors - Independent premises comprising n single undivided room with sep:u-ate
kitchen and privy and, in some cases, also a bathroom, having an effectiva.area not exceeding
300 square feet.

(b) L~rge tene~ent floors - As for (u) but with an effective area of over 300 square feet.

(c) Smell flats - Independent premises properly partitioned ~s living rooms and bedrooms with
scparo.te kitchen and b.::-.throom, having an effective nrea not exceeding 650 square feet.
(~Ji th the preference in recent years for small self-contain0d uni ts whnt ·?<re now classified
~s sm~ll fl}ts often differ very little from sm~ll tenement floors).

(d) Medium fl~ts - As for (c) with an effective 3rea of more than 650 square feet but not
exceeding 1,000 square feet.

(e) L~rge flats - As for (c) but with an effective urea of over 1,000 square feet.

( f) Houses - .... self-contained western-style house or bungalow designed for single occupation.
Village-type houses not included.

(g) workers' qu&rters - Low-rent housing etc. built by public utility and other large companies
for workers. St~ff residences not included.

i
 Jj~, I
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- - - ·-· 'w .,. . . . . . . . . - - •• ~-·-·····~·· ,,. . . . . . ·- -

I. Al>t>lll!SS 01' P11.EM1Sl!S

• :fl !fl t.t

2. WHAT IS THE I.ENT 01' TME ABO\!£

PREMISES?
.1: Ill! II !fl z Ii flt ft =r·T
RF YOU OWN THE PllBMISF.$, ENTl?tl
•'()(:COPIED 8Y OWNt:ltw,
'IP ttallitfitll'?•~IJH1t:tl'.ILl1J->
ll"u ................................... Yaftfo•
l. IN ADDITION TO TKE AftOVE RENT DO
YOU PAY ANY CJT}{Ell AM0tlNTS1 alllf ::tt/tl'
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lllHt lfr/tl"
•••••• ' • • • • • ' •••••••• ' • • • • * •••••••••••••
4. PROM WllAT DATE DID YOU COMMENCE
TO PAY THS AIJOVB RENT1
1! II fil l!t r~ WI tl f't ..1:. IJll fl\•?
' '· HAVE!. YOU AN AGllEl!MEKT IN WRITING,
AND. lf' so. FOil now LONG?
YatNo• • .. . . . .. . • • . .. .. .. • .. .. .. .. . .. . •• Ylll!I.
::fr/•• •
w••••~-r•~··~·~••·
6. 1>tt> YOU PAY CONSTlUCTION MONEY?
:ff ~ ft • • ft ii?
1. ANY OTHER COMMENTS Oil JNf'OUCA·
TJON YOU WOULD UJ(\; TO GI\'£.
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• Pl..se ilfik• oul ....t.11~wr cl«f not apply.
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111ANK YOO VIRY .iua1

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.
 DISTRICT NAMES FOR HONG KONG,
-
KOWLOON , NEW KOWLOON & TSUEN WAN

N
1

I 0 II T M