Source: Hong Kong Government special administrative region
Following is a question by the Hon Joephy Chan and a written reply by the Secretary for Environment and Ecology, Mr Tse Chin-wan, in the Legislative Council today (February 4):
Question:
It is learnt that quite a number of operators of public market stalls providing daily food and necessities for members of the public are facing the pressure of rent increases. Regarding the leasing and operation situation of shops in public markets under the Hong Kong Housing Authority (HA) and the Food and Environmental Hygiene Department (FEHD), will the Government inform this Council:
(1) of the respective numbers of stalls, occupancy rates of stalls and categories of let-out stalls, as well as the respective numbers and rates of vacant stalls, in the various markets under the HA and the FEHD in each of the past three years;
(2) of the rental adjustment arrangements for the various markets under the HA and the FEHD in each of the past three years;
(3) as there are views that tenants of markets under the HA and the FEHD are currently facing a very difficult operating environment, whether the Government has considered providing financial support measures, such as rent concessions, for such tenants; if so, of the details; if not, the reasons for that;
(4) whether the FEHD has considered making good use of vacant stalls in the markets under its purview by allowing online shops selling fresh and frozen food to provide self-pickup smart lockers, so that members of the public may collect their purchased items at markets outside working hours, thereby stimulating footfall in the markets; if so, of the details; if not, the reasons for that; and
(5) given that the HA has implemented the Well Being·Start-Up programme to offer shop premises in shopping centres under its purview rent-free to young people aged 35 or below for start-up purposes, whether the FEHD has considered, by drawing reference from such programme, providing vacant “non-food” stalls rent-free as start-up points for young people who wish to start their businesses; if so, of the details; if not, the reasons for that?
Reply:
President,
The Food and Environmental Hygiene Department (FEHD) is currently responsible for managing 95 public markets under its purview. In view of evolving consumption patterns of the general public and demand for public markets, the FEHD has, in recent years, implemented various measures to enhance the operating environmental and management of public markets.
Separately, the Hong Kong Housing Authority (HKHA) provides, in addition to affordable rental housing for low-income families with housing needs, ancillary facilities such as markets, as appropriate, to meet residents’ daily needs. At present, there are a total of 33 markets under the HKHA’s purview, offering residents with appropriate shopping options through flexible leasing arrangements and ongoing review of the trade mix.
As for the rent adjustments for market shopstalls under the HKHA, upon expiry of shopstall tenancy agreements, the HKHA assesses the renewal rents on a case-by-case basis according to the prevailing market value of the shopstall concerned, taking into account the rental status of other comparable lettings under the HKHA as well as the private property market; and relevant factors which would affect rental values such as the business environment of the trades, the location, as well as the size and the pedestrian flow of the shopstall concerned, etc. As for certain sectors which are facing greater challenges under the current economic climate, the HKHA will pragmatically take into account their actual operating conditions and may consider rent reduction to help alleviate their operational pressure when assessing rents for these trades. Given that the extent of rent adjustments upon renewal across different types of shopstalls varies due to the above factors, it cannot be generalised.