TNAG-0806-FCO40-1011-Policy-of-Government-of-Hong-Kong-on-land-in-the-New-Territo-1979 — Page 150

ENCLOSURE 7

Construction of a lend index (Index

Introduction

For the purpose of determining a land index to

reflect the average land value in the urban development

areas in the New Territories, it will be necessary to

take into account the values of land available for

disposal in accordance with the type of development

permitted thereon; appropriately weighted in accordance

with an agreed formula.

2.

The average land value in the urban development

areas in the New Territories as of the date of the

introduction of the new rate of compensation will be

assigned the base index 100.

Average Land Value

3.

The New Territories Administration publishes

at six-monthly intervals current market values of the

different categories of land within the major urban

development areas in the form of the Chart W (Enclosure 2

to Enclosure 1). For the purpose of calculating the

average land value it is proposed to take into account

three broad categories of land, namely -

(a) commercial/residential and residential

(b)

zone 1;

residential zones 2, 3 and 4; and

(c) industrial;

/in the

Page 150Page 151