3
the community. In providing land for development
by the private sector, the government's policy is
to meet demand and to leave it to the free market
to determine the development value of land. The
government does not, and has no intention to, either
hold back land when it is needed for genuine
development, or force an over-supply onto the
market by selling land at unrealistically low
prices.
Land Production
6.
Due to the small size and the topographical
and geological characteristics of Hong Kong, much
of the land required for development has to be
"produced" by reclamation from the sea or low-lying
areas, levelling hills and similar engineering
and land formation works. Formed land must also be
provided with the necessary infrastructural services
before its development potential can be realised.
The processes of producing land and providing it
with adequate infrastructural support are expensive :
for example, it is estimated that the average cost
of production of land for industrial use is at
present about HK$1,050 per square meter, or
HK$10.5 million per hectare.