Rents for 2,397 flats in three new harmony blocks at Ching Ho Estate Phase 3 in Fanling have been set by the Housing Authority, at $44.8 per square meter of internal floor area, the current district best rent level.

Under this rent fixing exercise, all the flats are set at a rent level below $1,800 per month.

The authority said the rents, inclusive of rates, management and maintenance costs, are heavily subsidised and within the prospective tenants' affordability, adding low-income tenants who cannot afford the rents will be offered cheaper refurbished flats.

Affordability is measured by the two median rent-to-income ratio benchmarks capped at 15% and 18.5% for the minimum space allocation standard of 5.5 square metres and 7 square metres per person.

The authority said in setting rents for new estates, factors other than affordability, such as inflation, rates, management and maintenance costs, wage movement, estate value, location and transportation, are also taken into account.

A public consultation exercise will be conducted to formulate a practical, sustainable and flexible rent policy.