LAND AND HOUSING
113
when the upset price of the site is $10 millions or more. This provides for payment by instalments with 10 per cent of the realised price being payable within one month of the auction, five per cent on each of the first and second anniversaries of the sale and 10 per cent on the next eight anniversaries. No interest is charged for this concession. Land for special housing projects, for public utilities, schools, clinics and approved charitable purposes is usually granted by private treaty. The premium charged in such cases varies from nothing for non-profit-making schools up to the full market value and payment by instalments for public utilities.
In order to assist owners of industrial lots where the premium is payable by instalments, a concession has been introduced which, subject to certain conditions, permits the sub-letting of parts of the building without having to pay the outstanding balance of premium. Previously the balance of premium outstanding became payable in the event of any sub-letting.
By a further concession the owners of such lots can now assign them before fulfilment of the building covenant or payment of the outstanding instalments of premium subject to the assignee under- taking these responsibilities. This concession enables undeveloped industrial lots to be brought into use when the original purchaser no longer wishes to develop the lot himself. It applies to any industrial lots acquired prior to January 1, 1967 and is operative for a period of two years from July 18, 1968.
In recent years, groups of 75-year non-renewable Crown leases granted chiefly in Kowloon, have been expiring. Terms and con- ditions for new leases have already been agreed in a large number of
cases.
On re-grant, the boundaries of the lots are adjusted to conform with street improvement lines etc, but the leases will not be re- granted if the land is needed for a public purpose. In these cases the Government pays ex-gratia compensation for the buildings on the lot.
A further concession in respect of non-renewable leases enables lessees who do not wish to pay the re-grant premium and redevelop to hold over for a period up to five years from 1968 at an annual rent equivalent to the net income arising from the property. This