ENG-1961 — Page 203

LAND AND HOUSING

165

paid either in a lump sum or by instalments over an agreed number of years. The majority of lessees avail themselves of the latter method of payment. For this reason the revenue in any one year is relatively small, but since payments will continue to be made for upwards of 80 years, the total revenue involved is considerable. The 1960 terms provide for a maximum of 20 annual instalments and interest of 10%. On regrant, the boundaries of these lots are adjusted to conform with street improvement lines, etc, and where land is needed for major replanning schemes the leases will not be regranted. In these latter cases the Government has announced its intention to pay ex gratia compensation for buildings.

There is a shortage of Crown land in the New Territories suitable for sale by public auction for concentrated development. Consequently there is much interest among developers in securing permission for the conversion of agricultural land to building status, on payment of a premium. The amount of building land that can be obtained in this way depends upon the location of the site selected. In normal circumstances conversions for industrial or high density residential purposes are only permitted in areas for which layout plans have been approved, and it is necessary for landowners to surrender approximately five feet of agricultural land for every two feet of building land to be regranted. In each case the premium payable is equivalent to the difference in value of the land surrendered and the land regranted.

Following the publication in 1960 of a statement of Govern- ment's land policy in the New Territories, the Heung Yee Kuk submitted a petition in February 1961, asking for extensive changes in this policy. In August the District Commissioner, New Territories, replied at length to the Kuk, explaining in detail why Government could not accept this petition.

Government Land Transactions. 1961 was the first full year of operation of a new system for selling Crown land in the urban area by which most auction sales were made in accordance with programmes announced up to eight months in advance.

The great demand for land for industry continued into 1961 and was met in the main by increased sales of factory sites in Kwun Tong, which is rapidly taking shape as a new industrial town, and at San Po Kong (formerly part of Kai Tak Airport). The prices ruling at the end of 1960-about $50 per square foot at both