LAND AND HOUSING
115
The fourth way caters for the lessee of an under-developed lot who does not wish to redevelop and allows him to renew his lease at a Crown rent lower than the full rental value of the land if he is prepared to accept a covenant limiting the development on the lot to that existing at the time of renewal. The covenant can be modified at any time redevelopment is required subject to the payment of an appropriate fee.
The demand for land continues unabated and future expansion must be in the New Territories. Outline development plans have therefore 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. 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 re-grant of building land with boundaries conforming to the development layout. Within planning layout areas these exchanges are normally negotiated on a foot-for-foot basis for building land surrendered, or on 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 the capital commitment has been eased by the issue of letters (known generally as letters 'A' and 'B') 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. These entitlement letters are freely assignable and although economic factors have placed some strain on the system in recent years, the position is rapidly improving as the demand for building land and thus for entitlement letters returns to normal.
LAND SALES
During the year there was a marked revival of interest in land purchases, particularly industrial land. The demand for land was such that the system of sale by programme announced in advance
URBAN COUNCIL PUBLIC LIBRARIES
Page 180Page 181