AUGUSTINE S. K. CHUNG ROOM 1115, HANG LUNG CENTRE, 11th FLOOR, PATERSON STREET,
HONG KONG. TEL: 5-771862-3
such loss! This unfair situation is outstandingly manifested in the case of Sai Lau Kok although the case has not yet been referred to the Lands Tribunal. In the case of Sai Lau Kok, the value of land resumed as assessed by the Authorities concerned was
$115,000.00 for the small flats of about 264 square feet (net area) or $195,200 for the bigger flats of about 460 square feet (net area) as at the reversion date, that is to say, 13th November, 1978. However, on 1st July, 1979, the purchase price for Tsuen Shing Building in Tsuen Wan was on the average of $317,000 for flats of 483 square feet (construction or gross. area) and $225,200 for flåts of 349 square feet
(construction or gross area). The above flats appear to be bigger. However, by reducing the area to net, they will be similar to the Sai Lau Kok flats in
terms of area. The purchase price above quoted has now gone up further! Such an increase in land
value in the last 9 months by almost more than
double can hardly be compensated by any kind of interest, be it 15.5% per annum. I enclose herewith
a photostat of the relevant brochure in respect of the said Tsuen Shing Building for your reference. However, as the law has not envisaged or made provision for such unusual and, thus, unpredictable increase in land value in the open market, the hands of the Lands Tribunal are tied. Under the law, the claimants can only be awarded the value of his flat resumed standing at the reversion date, plus interest at the permitted rate up to the date of payment. However, the total compensation so received by the claimant on the day of payment, which may be several months after the reversion date, may not be sufficient for him to pay half of the purchase price for a flat of equivalent standard and size. That is exactly the
to be Cont'd/P.6