V
t.
IA
2
rental will be liberal.
264
Value therefore on this basis will be
Actual area 20.699 acres @ $75 per acre =
$1,551.87
net rental which capitalized at a Chinese rate of 10% $15,518.70 for total value of the lot, or say $12 per square foot (valuation A) allowing for hedges, uncultivated portions and building areas.
I am aware that there are dye works, etc. on the ground which probably pay higher rentals than for cultivation only, but these industries are clearly against the provisions of the Crown Lease.
It has, however, been the practice of the Government, in the past, to deal very liberally with owners of Farm or Garden lots, and to practically recognise a right to have such land converted into inland or Building lots on varying terms.
An equitable view would be, to suppose that the Lessee of a Farm lot and the Government have equal shares in the value of ground on conversion, neither party being able to develop the area without mutual agreement.
If such joint ownership be admitted and the consent of the Government given to any scheme of formation of streets and laying out of lots for building purposes, then a value can be assured at the present worth of building land in the locality.
Adjacent ground I.L.1157 was sold by the Government for $30 per square foot and was of convenient size suitable and required for a special purpose, and fronting a main road. The value of building lots on F.L.4, especially for large blocks of land, cannot be taken at such a figure, there is no particular demand for houses in the neighbourhood, and it would be many years before the lots would be entirely utilized, and during such period, accruing interest and Crown rents would naturally increase the value, therefore, I think that a present value of such lots would be $20 per square foot. The area taken up by roads and lanes and squaring up lots may be taken at 50% of the whole original area, thus leaving 455,200 square feet to be...