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LAND AND HOUSING
Chung, Castle Peak, Sha Tin where entirely new towns are being built, and Yuen Long, Tai Po and Shek Wu Hui where development is based on the existing townships.
Most of these development areas contain a high proportion of leased agricultural and village building land, which must be sur- rendered or acquired before new development may proceed. As an incentive to surrender the lands required an exchange system has been developed whereby old building land may be exchanged on a foot for foot basis for new building land or five square feet of agricultural land for two square feet of building land, the lessee paying the difference in value between the surrendered lands and his new building lot. In layout areas where development is imminent, exchanges of land may be applied for by the lessee. Where land must be resumed for government development an offer is made to the lessee, during the period of resumption, of an exchange of land in any layout in the New Territories, to be taken up at such time as lands become available. This offer, if accepted, replaces his statutory rights to cash compensation under the Crown Lands Resumption Ordinance. The letters of offer (which are known as letters ‘A' and 'B') are freely assignable and the system has generally proved acceptable to landowners, at the same time reducing the Govern- ment's cash commitment for compensation.
LAND SALES
During the year, the interest in land development continued with the emphasis on land for non-industrial use. The system of selling land regularly in accordance with a planned programme was main- tained and as the year progressed price levels continued to rise and higher prices than those previously recorded were realised for lots in new development areas, particularly the Broadcast Drive area of Kowloon. In addition high prices were realised for numerous small lots (of approximately 1,000 square feet in area) in the older developed districts of Kowloon such as Yau Ma Tei. 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.
Revenue from land transactions in Hong Kong, Kowloon and New Kowloon during the financial year 1970-1 totalled approx- imately $214.9 million made up as follows: about $149.6 million from 53 sales by auction and tender; $8 million from private treaty sales; $17.9 million from modifications of lease conditions, exten- sions and exchanges; and $39.4 million from re-grants of expired