2.
2
1.2.2 the location of the new building land
to be in the area of the applicant's
1.2.3
choice, if available; and
premium for the new building land to be
the value of the new land assessed
as at the date of surrender of the old
land, less a credit representing the
value of the old land surrendered which
is expressly stated in the Letter A
or B.
THE PROBLEMS AND SHORTCOMINGS OF THE PRESENT SYSTEM AND REASONS FOR IT'S REVIEW
The Exchange Ratio
2.1
As only very limited areas of private building
land are involved in Letter B exchanges (see also
paragraph 5.2), the exchange ratio for agricultural
land, although lower is, therefore, by far the more
significant. The present exchange ratio of 5:2 was
originally based on the planning proposals for rural
townships such as Yuen Long and Tai Wai in Sha Tin,
where almost all the land to be developed was leased
agricultural land. In such areas, it was roughly
estimated that for every five square feet of land
required for urban development three would be needed
/for roads