Statutory rent control on shops and residential units can be dated all the way back to the 1920s and the 1940 decades. During both periods there was heavy inbound migration from the mainland. Property owners raised property prices and rents.

Rent control was applied in 1973 to prohibit landlords to raise rent exceeding 90 percent of the prevailing market rate for two years. It also forbids landlords to raise rent more than 30 percent when they negotiate a new tenancy lease with the tenants. Also, according to the rent control legislation at that time, landlords must extend the rental contacts with the existing tenants if these tenants are willing to pay the prevailing market rent.

Rent control was abolished in 1998 after the Hong Kong property market was battered by the Asian financial crisis of 1997. Property values plummeted

(HK Edition 03/14/2014 page6)