The Limited Times

Now you can see non-English news...

Shenzhen implements a reference price for the property market in Hong Kong, but it is difficult to control the rent of subdivided housing?

2021-07-05T20:13:52.807Z


The housing problem in Hong Kong has been a long-standing problem. Although subdivided housing is a necessary evil to temporarily solve the basic-level housing, the harsh environment, the high rent per square foot, and the rapid increase in rent are also issues that the authorities must control. Just the Transport and Housing Bureau


01 view

Written by: Commentary Editing Room

2021-07-05 17:00

Last update date: 2021-07-05 17:00

The housing problem in Hong Kong has been a long-standing problem. Although subdivided housing is a necessary evil to temporarily solve the basic-level housing, the harsh environment, the high rent per square foot, and the rapid increase in rent are also issues that the authorities must control.

It is just that the "Working Group on Subdivided Rental Control Research" (hereinafter referred to as the "Working Group") established by the Transport and Housing Bureau stated that it is difficult to establish a starting rent level for subdivided housing in Hong Kong.

In response, the Hong Kong Council of Social Service (hereinafter referred to as the Hong Kong Council of Social Service) announced on Sunday (July 4) the latest report on subdivided housing tenants, revealing the increasing difficulty of subdivided housing tenants under the uncontrolled rent, and the possibility of rent supervision Operational.

In the absence of subdivided rent control, the results of the HKCSS’s survey are not surprising: subdivided households generally appear to be more expensive to live (52%), and to move worse (35% of living space is reduced, 23% of the environment is worse) ) Status.

The HKCSS recommends that the government increase subsidies, including redistributing the N no allowance of the Community Care Fund, and expanding the scope of subsidies for cash allowances or CSSA rental allowances to grassroots who have been waiting for public housing for more than three years and have not received CSSA.

Most one-person households account for more than 50% of their income, and it is difficult to find suitable rental options in the market.

(Profile picture)

The rents of subdivided houses are not regulated, and the tenants are in a dilemma.

However, the government's public funding has always been limited. If it does not cooperate with the supervision of the subdivided housing rental market, the bottomless pit of this subsidy will ultimately only be to fatten the owners.

In the absence of supervision of rents, the price per square foot of the subdivided houses and the increase in rents once outperformed private buildings, which is obviously unreasonable.

Based on the data of about 1,500 sub-divided tenants, the HKCSS has calculated that about 15.8% are charged by landlords more than 20% higher than the estimated rent.

Therefore, subdivided housing rent supervision is a necessary move.

In fact, Shenzhen has started to monitor housing market prices at the beginning of this year to solve the housing problem, which can be used as a reference for Hong Kong.

As a large city in the mainland, Shenzhen has been optimistic about its development potential by many people, which has also caused its property prices to become one of the few cities in the country that has not fallen but has risen under the epidemic.

The income of subdivided households has decreased, but the rent has not fallen but increased, and the standard of living is more difficult than before.

(Profile picture)

Shenzhen reference price attracts many cities to learn from

In order to solve the problem of uncontrolled housing prices and the difficulty of residential housing, the Shenzhen government announced in February this year the establishment of a second-hand housing transaction reference price release mechanism.

Based on the investigation and analysis by the Shenzhen Real Estate and Urban Construction Development Research Center, the second-hand housing online signing price is used as the basis, and the surrounding first-hand housing prices are referenced to comprehensively form the reference price of second-hand housing transactions in residential communities in the city, and follow the city’s full coverage and regional network. Based on the principle of gridization, the residential quarters are used as regional grid units to release the reference prices of second-hand housing transactions in 3,595 residential quarters in the city.

In other words, once the buyer and seller make a transaction at a price higher than the reference price, the buyer's bank loan will be reduced and the down payment threshold will increase.

At the same time, due to more transparent transaction information, the second-hand housing market in Shenzhen declined from March to May.

In May, the Shenzhen government's measures to issue reference prices were extended to Shenzhen's first-hand property market regulation, and they were quickly used for reference by many mainland cities such as Chengdu, Wuxi, and Dongguan.

Although Shenzhen’s reference price guidance is set for the housing market, there is room for further improvement in its implementation and price setting, but this measure shows the mainland’s determination to regulate housing market price chaos and the feasibility of setting a price reference.

Similarly, based on the rent data of more than 1,500 subdivided housing tenants this time, the initial attempt to obtain a rental valuation plan also showed that subdivided housing rent supervision is not infeasible.

The HKCSS takes the second unit on the ground in Sham Shui Po alone without any facilities and partitions as a benchmark, and then adds and subtracts rents based on independent facilities, floors, areas, etc., to get a rough estimate of rent.

Although there is room for further improvement in technology, it also proves that although rent reference estimation is difficult, it is not impossible.

The "Working Group" has more comprehensive demographic data, and it is entirely possible to make improvements based on the HKCSS model, rather than retreating from difficulties.

The HKCSS's survey shows that the current subdivided housing rent accounts for more than half of the income of 43% of one-person households, which is enough to prove that the unregulated subdivided housing rent is not only weakening the quality of life and security of the 210,000 subdivided housing tenants in Hong Kong, but also eroding their investment. The possibility of the future has contributed to a tragic cycle of poor people getting poorer.

Of course, we have to solve the problem of subdivided housing from the release of brownfields and the construction of public housing. However, when it is a temporary necessary evil in society, we must also do our best to monitor its rent and curb its negative impact.

More importantly, with the supervision of subdivided housing rents as an experimental field, the regulation of chaotic housing prices should be extended to the mainland in general to the trading market, so that citizens can truly enjoy the benefits of housing and non-speculation.

It's hard to see results if you try to avoid the real rent

The government's urgent need to meet the urgent needs of the government to launch the rent control system as soon as possible

[Editorial in Weekly News 01] It’s not advisable to postpone rent management

01 depth

Subdivided Housing Rental Prices 01 Viewpoints

Source: hk1

All news articles on 2021-07-05

You may like

Life/Entertain 2024-02-06T08:31:40.845Z
News/Politics 2024-02-20T12:12:21.484Z

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.