ENG-1967 — Page 164

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LAND AND HOUSING

To ensure that scarce land is put to the best possible use, all sales or grants are subject to a covenant in which the lessee under- takes to develop up to a certain rateable value within a specified period. The amount he must spend depends on the location and the type of development allowed. In addition to the covenant, new leases contain clauses controlling the use to which land may be put to accord with town planning. They also provide for the annual payment of Crown rent.

The relaxation of time limits on building developments, announc- ed in November 1965, was continued in the year under review. This concession applied to developers owning land which was either the subject of an exclusion order (see the section of this chapter on Rent Control) made before July 1, 1965, or held from the government under conditions of sale or grant executed before July 1, 1965, and on which development had not begun or had not been completed. These developers became eligible to apply for extensions of up to three years-free of penalty or premium—of the time limit by which they were bound to begin or complete their approved development scheme, or to fulfil their building

covenant.

The arrangement whereby purchasers of industrial land in special development areas are eligible to pay the premium by instalments over a period of up to 20 years, was extended during the year to cover industrial sites to be sold at Sam Ka Tsuen, a new industrial area being developed beyond Kwun Tong.

In order to assist owners of industrial lots where the premium is payable by instalments, a concession was introduced during the year to permit, subject to certain conditions, the sub-letting of parts of the building without having to pay the outstanding balance of premium. Previously the balance of premium outstanding became payable in the event of any sub-letting.

Sale by public auction ensures, by and large, that the person best able to develop the land in accordance with the terms of the lease gets the right to do so and that the community receives the maximum return in cash. As the rent reserved in the lease is low, this policy does not, generally speaking, enable the government to obtain direct financial gain from any increase in the value of the