ENG-1966 — Page 173

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LAND AND HOUSING

in recurrent revenue from land, since most of the Colony's more valuable land is held on long leases.

In the earlier part of this century the leases of lots lying in the better residential districts of Hong Kong Island and Kowloon often included restrictions on the type and height of buildings. These restrictions have served their purpose well, but the demands of an increasing population now require more intensive development. It has therefore become the practice for these conditions to be modified in accordance with standard zoning schedules which preserve the amenities of each district while allowing more intensive development. Modifications of this sort are subject to the payment of a premium.

In recent years groups of 75-year non-renewable Crown leases granted in the Colony's early days, chiefly in Kowloon, have been expiring. Terms and conditions for new leases have already been agreed in a large number of cases. Premiums for the new leases may, subject to certain conditions, be paid either in a lump sum or by instalments over an agreed number of years, most lessees preferring the latter method. Terms announced in 1960 provide for a maximum of 21 annual instalments and interest of 10 per cent. On re-grant, the boundaries of these lots are adjusted to conform with street improvement lines, etc, and where land is needed for major replan- ning schemes the leases will not be re-granted. In these latter cases the government has announced its intention to pay ex gratia com- pensation for buildings. For churches and temples already on non- renewable leases, new leases may be granted free of premium.

An increasing number of 75-year renewable leases are also falling due for renewal. In these cases, under terms announced in 1963, the Crown lessee of an underdeveloped lot has two alternatives. He may renew either at a Crown rent based on the full rental value of the land without added lease covenants, or if he is prepared to accept a covenant limiting the development on the lot to that existing at the time of renewal-at a lower Crown rent.

With the increasing need to seek sites for major schemes in the New Territories, outline development plans have been prepared or are under preparation for building new towns and expanding existing market towns in those areas best suited to industry and high-density housing. These are Tsuen Wan, Kwai Chung, Castle Peak, Sha Tin, Yuen Long, Tai Po, Shek Wu Hui, and Junk Bay. However, most