LAND, PUBLIC WORKS AND UTILITIES
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On Hong Kong Island and in Kowloon, compensation of about $144 million was paid for land and buildings acquired during the year for public works projects, such as open space development at Cleverly Street on Hong Kong Island and road improvement schemes like the work for Wong Chuk Hang Road Flyover.
The Lands Administration Office was also involved in the resumption of land for the implementation of urban renewal schemes carried out by the Land Development Corporation. During 1998, a total of $243.2 million of statutory compensation was paid out to owners of 58 resumed properties affected by two projects at Sheung Wan and Mong Kok. Necessary procedures for the resumption of land have also been initiated for another five urban renewal projects involving 248 properties at Yau Ma Tei, Wan Chai, Kennedy Town, Tsuen Wan and Tsim Sha Tsui.
The Railway Development Section was set up within the department in July 1997 to deal with the land aspects of various railway projects. It was involved in the gazetting and land acquisition for Phase I of KCRC's West Rail Project and the MTR Corporation's Tseung Kwan O Extension Project. Phase I of the West Rail Project involves acquiring about 1 300 private lots and the clearance of over 380 hectares of government and private land. The Tseung Kwan O Extension Project affects 43 private lots and about 80 hectares of government and private land.
Land Disposal
All land within the Hong Kong Special Administrative Region is state property. The government is responsible for its disposal and management. Most government land available for private sector developments is sold by public auction or tender. However, land is made available at nominal premium to the Housing Authority for its public rental estates and Home Ownership Scheme, and to non-profit-making educational, medical and charitable institutions which operate schools, hospitals, and social welfare and other community services; at reduced premium to the Hong Kong Housing Society for its Flats-for-Sale Scheme, rental estates and Sandwich Class Housing; and at full premium to public utility companies for their installations or other related developments.
Government land leases are normally for 50 years from the date of grant at premium and subject to an annual rent equivalent to three per cent of the rateable value of the property at that date, adjusted in step with any changes in the rateable value thereafter.
Every year the government announces a land disposal programme, which normally covers a five-year period and will be updated and rolled forward before the start of the next financial year.
The regional financial turmoil has resulted in a drastic adjustment of property prices. In June 1998, the government announced an immediate suspension of all land sales by public auction or tender in the remainder of the 1998-99 financial year. Notwithstanding the suspension of land sales, the government continued to form and service land for housing and other needs to create a land bank which could be drawn upon when there was demand.
During the year, 10 sites with a total area of nine hectares for housing (including land at Tsim Sha Tsui, Happy Valley, Aldrich Bay and the Peak), one site with an area of three hectares for a film studio at Tseung Kwan O, and three sites with a total