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HOUSING AND LAND
incorporated lease conditions requiring the developer to design a percentage of the permis- sible floor area with heavy floor loading capabilities and high ceiling clearance. A number of lots also have been sold requiring the provision of small industrial units.
The option to pay premium for industrial land by instalments over 10 years with interest at 10 per cent per year, was withdrawn at the end of the year. From January 1, 1981, such premiums will be payable in full within one calendar month of the date of sale. As a transi- tional measure, the initial payment of 10 per cent of the premium soon after the auction, required under the existing instalment system, was increased to 40 per cent in July, 1980. At the same time, the alternative of paying the premium by four equal annual instalments spread over two years, without interest, was also withdrawn.
Land for community purposes, such as schools and hospitals to be developed by private non-profit-making bodies, is granted at nil premium by private treaty. Land for public housing is allocated at nil premium to the Housing Authority, and grants at one-third full market value or acquisition costs, as appropriate, are also made to the Hong Kong Housing Society for the construction of low-rent housing.
It is also government policy, in certain areas, to modify old lease conditions which severely restrict the development permitted on a lot, in order to allow redevelopment complying with the applicable town planning requirements. A premium, equivalent to the difference in land value between the development permitted under the existing lease and that permissible under the new lease terms, is normally payable for any modification granted.
A premium is also payable if a lot held on an expired lease is regranted to the former owners. Special arrangements have been introduced to deal with expired leases where the ownership is divided among a number of owners. In the case of the owners of property, the leases of which give them the option to renew the lease for a further term, special legisla- tion was enacted in 1973 to introduce a new Crown rent related to the rateable value of the property situated on the lot.
Legislation
In July, the Legislative Council passed the Electricity Network (Statutory Easement) Ordinance 1980, to enable the China Light and Power Company to begin construction and maintenance works for electricity networks over private land. The need for this ordinance was prompted by the 400 kV network which is currently being established around the New Territories to distribute power from the Tap Shek Kok Power Station now under construction.
Important Transactions
Important government land transactions during 1980 included the sales by tender of two prime commercial sites. One site in the Central District, with an area of 3,214 square metres, sold for $908 million a unit price of $282,514 per square metre. The other site, in Tsim Sha Tsui, had an area of 6,600 square metres and sold for $1,314 million - or $199,136 per square metre. A large residential site of 134,990 square metres at Red Hill was also sold by tender for $1,308 million. This site can accommodate 101,243 square metres gross floor area of building development.
A tender for a site in Ap Lei Chau with an area of 24,900 square metres for industrial godown use, and requiring the purchaser to carry out largescale land reclamation work, was sold for $818 million. At Shum Wan in Aberdeen a 51,363 square-metre site for a boat marina with associated facilities was sold by tender for $116.5 million.