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The Food and Environmental Hygiene Department (FEHD) will launch a pilot scheme this week to let out through open auctions public market stalls at concessionary prices through short-term tenancy (STT) in a bid to improve the viability of public markets.
The scheme covers market stalls which have been left vacant for more than eight months and their upset prices are fixed at 60 per cent of the open market rents (OMR).
A spokesman for the department said today (October 10), "The pilot scheme will bring benefits. It provides flexibility to interested persons to start business for a three-month trial period in public markets managed by the FEHD as they may prefer not to be bound by a three-year tenancy.
"The initiative will attract more people to run a market stall, especially during such peak business periods as the Lunar New Year. Sitting tenants may also rent the adjacent stalls for temporary expansion of business during festive seasons."
In general, those aged 18 or above and have ordinarily resided in Hong Kong, as well as charitable organisations which have been approved by the FEHD to take part in open auctions are eligible to bid under this scheme.
"Starting from October, long-standing vacant stalls in wet markets, other than those for the sale of restricted food such as fish, poultry and meat, will be let through the first round of monthly auctions through a three-year tenancy. If the stalls have not been leased out, they will be auctioned immediately during the second round for lease through STT," the spokesman said.
The STT, which commences on November 1, is renewable for another three months. If a tenant intends to extend the tenancy, he may do so by paying the updated OMR as assessed by the Rating and Valuation Department or the STT rent, whichever is the higher. The tenancy agreement for the third term will cover 30 months.
The spokesman added that the STT agreements are not to be transferred or succeeded, except by the nominated successor with probate of the will.
"We will review the pilot scheme in six months," he said.
Upcoming open auctions for public market stalls through STT for the month of October are scheduled as follows:
October 15 Tsuen Wan and Kwai Tsing
October 18 Yuen Long and Tuen Mun
October 20 Tai Po and North District
October 21 Sai Kung and Sha Tin
October 22 Hong Kong region and Islands District
October 25 Kowloon region
Details of the scheme are available on the FEHD website: www.fehd.gov.hk.
Ends/Sunday, October 10, 2010
Issued at HKT 12:01
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