LAND AND HOUSING
109
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 and Shek Wu Hui. 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 bound- aries 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.
LAND SALES
During the year, the interest in land development continued but the emphasis shifted slightly from industrial land to land for resi- dential use. The system of selling land regularly in accordance with a planned programme continued and as the year went on, price levels rose and higher prices were realised for lots in new development areas than previously, particularly the Broadcast Drive and Beacon Hill Road areas of Kowloon. The numbers of applications received for modifications, re-grants of 75-year non-renewable leases and renewals of 75-year renewable leases as well as the number of private transactions increased still further than in the previous year.
Revenue from land transactions in Hong Kong, Kowloon and New Kowloon during the financial year 1969-70 totalled approxi- mately $100 million made up as follows: about $63 million from 83 sales by auction and tender; $14 million from private treaty sales;