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The following is issued on behalf of the Housing Authority:
The Housing Authority's Commercial Properties Committee today (July 20) endorsed a package of measures to improve occupancy rate at retail premises in 181 public rental housing estates or Home Ownership Scheme courts.
More flexible terms of letting by advertising short-term lettings through instant open tender or direct negotiations on a first-come-first-served basis will be introduced under the following conditions:-
- Retail premises of up to 70 sq. m. in size offered to let unsuccessfully in open tender exercise at least thrice for a standard term will be let for a term of 12 months;
- The premises will be put forth for letting by open tender under which the lease can be terminated by either party by one month's notice;
- Payment of one month's rent in advance and a rent deposit of one month only will be required;
- One month rent free period will be granted to the short-term lettings;
- On expiry of the 12 months period, application for extending the lease to a standard three-year term may be considered subject to rental re-assessment.
To address the high vacancy rate in the conventional wet markets, extra rent free concession will be offered for long-standing vacant shopstalls which have been offered to let unsuccessfully at least thrice at open tender exercise.
The extra rent free periods, ranging from two months to six months rents, will be granted for letting of long vacant market stalls depending on the vacancy periods.
To deter abuse of the concession, the extra rent free period will be granted in stages during the three-year term tenancy. The two extra months' rent free will be granted in the 6th and 12th months of the tenancy; the four extra months rent free will be granted in the 6th, 12th, 18th and 24th months of the tenancy; and the six extra months' rent free will be granted in the 6th, 12th, 18th and 24th, 30th and 36th months of the tenancy.
The Committee also endorsed the adoption of a proactive approach to solicit non-Government organizations to take up long vacant retail premises and carparks due to overprovision of such facilities for development of other community services.
Ends/Thursday, July 20, 2006
Issued at HKT 20:06
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