LAND AND HOUSING
117
Government has announced its intention to pay ex gratia com- pensation for buildings. For churches and temples already on non-renewable leases new leases may be granted free of premium.
An increasing number of 75-year renewable leases are also falling due for renewal. In these cases, under the terms announced in 1963, the Crown lessee of an underdeveloped lot has the alternative of renewing either at a Crown rent based on the full rental value of the land without added lease covenants, or, if the lessee is prepared to accept a covenant limiting the development on the lot to that existing at the time of renewal, at a lower Crown rent.
With the increasing need to seek sites for major schemes in the New Territories outline development plans have been prepared or are under preparation for expanding existing market towns and building new towns in those areas best suited to industry and high density housing: Tsuen Wan, Kwai Chung, Yuen Long, Tai Po, Shek Wu Hui, Castle Peak, Sha Tin and Junk Bay. However, most of these development areas contain a high proportion of leased agricultural land and there is not enough Crown land to serve public purposes. As development proceeds, Crown lessees are invited to surrender agricultural and village or rural building land in exchange for a regrant of building land, with boundaries con- forming to the development layout. Within layout areas these exchanges are normally negotiated on a foot-for-foot basis for building land surrendered, and a five feet for two feet basis for the agricultural land surrendered, with a premium payable equal to the difference in value between the land surrendered and that regranted. This system has proved acceptable to landowners and has been further eased by the issue of letters entitling the landowner who voluntarily surrenders land at the time when it is required for a public purpose to a future grant of land when this becomes available.
Outside declared development areas, buildings on agricultural land are normally restricted to extensions to existing villages or to agricultural structures. Land required for road improvements, water pipelines, etc is normally resumed against cash compensation.
LAND SALES
Auction sales of Crown land in the urban area take place almost every week. Sales during the financial year 1963-4 totalled 247, five less than the year before.