TNAG-0806-FCO40-1011-Policy-of-Government-of-Hong-Kong-on-land-in-the-New-Territo-1979 — Page 81

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quantity of private building land affected by urban

development and which must be acquired either for

compensation or through the exchange system is relatively

small. But because building land is itself valuable,

and provides homes and in many cases accommodation for

businesses and factories, the method of its acquisition

is very important to its owners.

5.3 Unlike agricultural land, building land is

valuable for its sake, quite irrespective of the

prospects for its reuse in an urban development scheme.

The value of building land together with the buildings

on it is dependent on location, the terms of the lease

and the condition and use of the building. These

elements are capable of valuation and are compensatable

under the Crown Lands Resumption Ordinance.

5.4. Under the present arrangements, the owner of

land affected by an urban resumption is offered either

compensation representing the value of the buildings and

land or a foot for foot exchange with a credit of part of

the value together with a payment of cash compensation

representing the remaining part. In neither case is

there any ex-gratia element as there is for agricultural

land, although a fairly comprehensive range of ex-gratia

payments are paid on clearance to the users of buildings

on building land in common with buildings on other forms

of land.

/5.5