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LAND AND HOUSING
subject to re-assessment of Crown rent, permits owners intending to develop, and whose leases have less than 20 years to run, to surrender their existing leases and be granted new ones at a premium payable either by lump sum or by three annual instal- ments. Alternatively, an owner who waits until the year of expiry of the first term of his lease, may then pay either an annual re- assessed Crown rent or a lump sum premium in lieu.
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 building new towns and expanding existing market towns in areas best suited to industry and high- density housing. These are Tsuen Wan, Kwai Chung, Castle Peak, Sha Tin, Yuen Long, Tai Po, Shek Wu Hui, and Junk Bay. How- ever, 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 re-grant of building land with boundaries conforming 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 re-granted. This system has proved acceptable to landowners and has been 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. Certain economic factors have, however, placed some strain on the system, but it is likely that the position will improve when demand for building land catches up with supply and investors regain confidence.
LAND SALES
The property market started to revive in the second quarter of the year and a firm undertone of demand developed through the latter part of the year. This engendered a revival in interest in development and redevelopment of vacant sites already in private ownership and produced a number of applications to purchase