regranted at a premium assessed on the value of the land at the date of application for the regrant. The resulting premium, subject to certain requirements being met, may be paid by annual instalments over an agreed period not exceeding 20 years subject to the payment of interest at the rate of 10% per annum. To enable owners of individual units in a compositely owned property to take up a regrant on payment of an apportioned premium relevant to their respective units, a non-renewable lease may be regranted to the Colonial Treasurer Incorporated which will assign the various relevant interests in the property back to the individual owners. Renewable leases are now renewed under the provisions of the Crown Leases Ordinance 1973 at a new Crown Rent assessed at 3% of the rateable value of the property concerned.
7.21
Difficulties had originally been encountered in late 1972 with regard to certain properties to be regranted where the premium fell to be assessed at a time when land values were relatively high and where the provisions of the Landlord and Tenant (Consolidation) Ordinance Part II applied. These two factors combined to create a situation where some owners could be required to pay more by instalments of premium for a regrant than the net income receivable from those same premises.
7.22
In the circumstances, it was considered equitable to allow a concession by limiting the amount of initial instalments of premium to a percentage of the actual net income-earning potential of the property or relevant interest concerned. This concessionary policy was approved by the Executive Council in September 1975 as an interim measure to be reviewed in three years' time. This opened the way for a backlog of some 160 cases to be cleared. The concessions apply to all post-war buildings subject to rent control which are held on non-renewable leases expiring on or after 31st October 1972 but not to early regrants.
VALUATION DIVISION
Records Section
7.23 The Records Section records and analyses all sales of land in the urban areas, and conducts continuous research into all factors that affect the value of land, including sales prices of flats, shops, factories, and building costs. The Section collates and publishes monthly an internal Office report of all land and property statistics and news in Hong Kong. The Section is also responsible for training new officers for departmental and professional examinations.
7.24
During the year the Section completed 41 assessments of Incremental Value under the provisions of the Demolished Buildings (Redevelopment of Sites) Ordinance, and carried out 220 valuations for special and general purposes. Estate Duty valuations of 1,206 properties with a total value of $443.4 million were also undertaken, although as from 1st September 1975 the responsibility for new Estate Duty valuations passed to the Rating & Valuation Department.
Resumption Section
7.25 The Resumption Section undertakes all acquisitions of land for public purposes with the exception of land required for Mass Transit and Urban Renewal projects. The Section is also responsible for various actions under