HKHS added 8% to “outperform” inflation wage increase

The beginning of the new year, all things soaring. The HS announced yesterday that it will increase its rent by 8% this year, which is the highest level of 8% for three consecutive leases. The new rent will take effect from April 1. Tenants of 20,000 rental units in 20 estates will pay an average of $ 159 a month for two years. At the same time, the Housing Society announced the launch of the Rent Assistance Scheme on September 1 and the implementation of the policy on the rich households (see separate manuscript). Although the increase in rent increase this time is much higher than the cumulative inflation and nominal wage increase in the past two years, the HS still said that there will be a housing operation deficit with a 12% increase to be flat.

The HS has been refinancing every two years since 2010, 3% in 2010, 6% in 2012 and 8% in both 2014 and 2016. Together with this year, it has been maintaining an increase of 3 consecutive rent-paying periods At 8%. Huang Jielong, the chief executive of the HS, said tenants would have to pay an additional 41 yuan to 610 yuan a month after rent increase. The new rent ranged from 561 yuan to 8235 yuan. Operating costs in Wong Hin Estate As the Consumer Price Index continues to rise, coupled with the aging housing estates, the HKHS needs to finance maintenance and repairs and even major overhauls and improvements. Therefore, there is a need to increase rent to maintain operating costs.

Five conditions eligible for rent assistance

Huang Jie-long said after the increase of rental housing estates operating losses will still occur, it is estimated that plus 12% can be flattened, taking into account household concerns, in order to avoid increasing their financial burden, only with reference to the cumulative inflation rate over the past two years to make a “moderate” adjustment .

For some households facing financial difficulties, Wong Kit-long said the HS will launch a rent assistance scheme starting from September 1 this year. If the tenants meet all 5 eligibility criteria, they will be entitled to an rent reduction of 50%. The total assets of the family should not exceed the total assets of the rental housing estate As a result, the family income has dropped by half and the current living accommodation meets the minimum number of residents. All family members have no property in Hong Kong and none of the CSSA recipients are members. The Housing Society reviews tenants’ tenants status every two years. If their incomes improve during this period, they must declare and repay the rent originally.

Although the current rate of increase is similar to 2014 and 2016, KCRC Legislative Councilor KC Choong Shing said the current rate of increase is still too high compared to the cumulative inflation of 4.6% in the past two years and the cumulative nominal wage increase of 7.5%.

Members urged HOS subsidies

He also said that the HKHS representative last promised in July last year to conduct a comprehensive review of the rent policy at the end of the year. He hoped that the results would be released as soon as possible and considered adding inflation figures, wage growth rates and tenant affordability as reference indicators.

Ko Chong-sung said that during the 60th anniversary of the HKHS, he had sent “Yes to Italy” to the tenants and froze the rents for one year and rent-free for one month. This year coincides with the 70th anniversary of the HS. Hopefully, this can be done by reference to alleviating the burden on the residents.