Rental Index of Sub-divided Housing Units
There are some housing rental indices in Hong Kong, such as the government’s Rating and Vauluation Departent (RVD) rental index, however, there are no rental indices for sub-divided units, probably because many of them are not reported to be sub-divided units to RVD.
Yet, tenants of sub-divided housing units are in the most urgent need of this market information because they are normally the lowest income group of households, and are vulnerable to any unreasonable rental increase. Currently, they rely solely on real estate agents, who are in serious conflict of interests because their commissions are based on a fixed percentage of the monthly rent of the units.
We hope this research will enhance information symmetry on rental data to both owners and tenants, and provide data for better understanding of the tenants’ conditions, and reasons for choosing sub-divided units.