LAND AND HOUSING
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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 conforming to the development layout. Within layout areas these exhanges 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 any 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. The current depression in the real estate market and general tightness of credit have, how- ever, placed some strain on the system, but it is hoped that the position will improve when demand for building land catches up with supply and investors regain confidence.
LAND SALES
The property market continued to be affected by the tightness of credit facilities. Although there has been a slight revival of interest in sales of land for industrial use it has been insufficient to warrant the reintroduction of a pre-announced programme of land sales. Similarly, land for purely residential development continued to be offered for sale by auction only on application. The difficulties of financing development also resulted in fewer applications being received for the grant of modifications of leases and the regrant of expiring 75-year (non-renewable) leases. Three sites in Kowloon were sold for development as broadcasting and television studios, one of which will provide wireless television for the Colony. The year saw the introduction of sales by public tender of royalty leases for petrol filling stations, and one such lease was granted. Another transaction, involving a major oil company, was the surrender of land in New Kowloon for the grant of other land in the New Territories for development as a bulk oil terminal. Part of the land surrendered is to be used in connection with the construction of a road and bridge across Lai Chi Kok Bay while the remainder,