LAND AND HOUSING
87
exception was made for industrial lots in certain developing areas where the premium could be paid by instalments. As a result of a change introduced in 1969, for valuable sites in Central, where the realised price of the site was $10 million or more, payment could be made by annual instalments over 10 years free of interest. During 1970 a further change provided for 10 per cent of the realised price to be paid within one month of the auction, and the balance by 10 equal annual instalments bearing interest at 10 per cent a year. At the end of 1972, in view of the increase in land values, the $10 million figure was raised to $20 million. In 1974 a further extension to the system of deferred payments was made to enable developers of large commercial-residential sites and industrialists throughout Hong Kong to enjoy the option of payment over 10 years at 10 per cent interest. To assist owners of industrial lots where the premium is payable by instalments, there is a concession which, subject to certain conditions, permits the sub-letting of parts of the building before payment of the outstanding balance of premium.
The demand for both industrial and non-industrial land was well maintained in the early part of the year, but high interest rates and the general difficulty in obtaining development finance resulted in a marked slackening in demand and a downward pressure on land values in the latter part of 1974. The revenue from land transac- tions for the financial year 1973-4 was $164.5 million, well below the record of $576 million received in the financial year 1972-3, but in line with average revenue for previous years.
Where it is not possible to dispose of Crown land immediately, either because public utilities and other services are not yet available or the site has been set aside for some purpose in the future, the land is rarely left vacant. It may be let out either on temporary annual licence (formerly known as 'permit') or on short-term tenancy. The 1973-4 revenue from this type of tenure was about $10.6 million in the urban area, and $3.6 million in the New Territories (including modification of tenancy fees). As permanent development continues, licences are cancelled and the number decreases each year. The number of short-term tenancies, however, is increasing. Revenue derived in rent from buildings owned by the government in whole or part totalled $5.7 million.
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In the past, difficulty has sometimes been experienced in disposing of Crown land because of its unauthorised occupation, normally for storing goods. This necessitated overcoming considerable clearance problems before vacant possession could be obtained and sale could take place. In recent years a policy of fencing vacant sites and installing security guards has helped to reduce this problem and a major step forward was achieved with the enactment of the Crown Lands Ordinance at the end of 1972. This ordinance gives the Director of Public Works and the Secretary for the New Territories much greater and more direct powers to combat the unlawful occupation of Crown land and enables clearances to be effected more quickly and usually without litigation.
In recent years the terms of many 75-year Crown leases have expired. Many of these are non-renewable leases but unless the land is required for a public purpose, it is government policy to negotiate a new lease with the former lessee. The premium