Rents for 7,353 new flats in four public housing estates to be completed later this year will be set and maintained at the current best rent level, the Housing Authority says, adding that 80% of the rents are below $2,000 per month.

Current district best rents, which have been frozen since 1997 under the then sluggish economy, range from $36.4 per square metre for Islands District to $63.4 for Urban District.

The Housing Authority's Subsidised Housing Committee today endorsed rent proposals for Shek Kip Mei Estate Phase 1, Hoi Lai Estate Phase 4, Lei Muk Shue Estate Phase 4 and Mei Tin Estate Phase 1 and 2. These estates comprise 2,591 flats in three non-standard blocks and 4,762 flats in six New Harmony blocks.

Affordability

The authority explained that tenants' affordability is one of the major considerations for setting rents for new estates. The affordability benchmark is measured with reference to the median rent-to-income ratio of 15% and 18.5% of the prospective tenants at the minimum space allocation standard of 5.5sqm and 7sqm per person.

Other factors include comparable estate value, location, transportation, management and maintenance costs, rates, trends in general household incomes and the state of the authority's finances.

The authority said that rents, which are inclusive of rates, management and maintenance costs, are heavily subsidised after taking land costs into account. The proposed rents are within the prospective tenants' affordability, and low-income tenants who cannot afford the rents will be offered cheaper flats.

Non-Comprehensive Social Security Assistance recipient households affected by the Comprehensive Redevelopment Programme having rent-to-income ratio exceeding 25%, or elderly households exceeding 20% upon re-housing to new flats, are immediately eligible for a 50% rent reduction under the revised Rent Assistance Scheme.