4.
increasingly urbanized, making the land unsuitable for
agricultural purposes. Apart from environmental pollution,
there are considerations such as the diversion of traditional
water supplies rendering agriculture difficult.
(ii) The freezing" of development potential and the delay in the
processing of applications for development have a particularly
detrimental effect as the 99 year term of the New Territories
Lease draws to a close.
The inhabitants of the New Territories have long expressed their
dissatisfaction with the compensation paid by the Crown on the resumption or
compulsory acquisition of their land. The proof of the inadequacy is that in
nearly all cases, where the owner and particularly a small landowner, does not
wish to become dispossessed and abandon farming as a way of life he finds that he
cannot buy comparable land at a price which is anything like the compensation rate.
5.
In an attempt to assuage this dissatisfaction, Government introduced
a system of "Land Exchange Entitlement" applicable where land which is situated
in a planned lay-out scheme is resumed. For every 5 square feet of agricultural
land an entitlement to 2 sq. ft. of building land is granted, and where building
land is resumed the land exchange entitlement is on a foot for foot basis. However
a substantial premium has to be paid, being the difference between the value of
the building land granted as valued by Government and the value of the land
resumed or surrendered prior to resumption. In 1976 the value of the land granted
in exchange (on a 2 for 5 basis) was set at about $350.00 per square foot, and the
owner of agricultural land was credited with $10.00 per square foot, so the owner
of say 5,000 square feet of agricultural land would have a credit of $50,000.00
(5,000 x $10.00) to set against #700,000.00 (2,000 x $350.00), i.e. the expropriated
owner would have to pay $650,000.00. In the case of resumed building land, say of
2,000 square feet, this would be valued on the basis of "restricted village building
land" at about $50.00 per square foot, and the owner would have to pay a premium of
about $300.00 per sq. ft. i.e., about $600,000.00 for an area of 2,000 square feet.
The above substantial premiums have to be paid by owners who have had to give up
<
No comments yet.
Private notes are available after approval.