TNAG-1319-FCO40-1723-Future-of-Hong-Kong-land-leases-1984 — Page 57

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the community. In providing land for development

by the private sector, the government's policy is

to meet demand and to leave it to the free market

to determine the development value of land. The

government does not, and has no intention to, either

hold back land when it is needed for genuine

development, or force an over-supply onto the

market by selling land at unrealistically low

prices.

Land Production

6.

Due to the small size and the topographical

and geological characteristics of Hong Kong, much

of the land required for development has to be

"produced" by reclamation from the sea or low-lying

areas, levelling hills and similar engineering

and land formation works. Formed land must also be

provided with the necessary infrastructural services

before its development potential can be realised.

The processes of producing land and providing it

with adequate infrastructural support are expensive :

for example, it is estimated that the average cost

of production of land for industrial use is at

present about HK$1,050 per square meter, or

HK$10.5 million per hectare.