ENG-1967 — Page 165

LAND AND HOUSING

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land after it has been sold. For this reason the large increase in land values in recent years has resulted in relatively little increase in recurrent revenue from land, since most of the Colony's more valuable land is held on long leases.

Earlier this century leases of lots lying in the better residential districts of Hong Kong Island and Kowloon often included restric- tions on the type and height of buildings. These restrictions have served their purpose well, but the demands of an increasing popu- lation now require more intensive development. It has now 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. Modifica- tions 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, which is the method preferred by most lessees. Terms announced in 1960 pro- vide for a maximum of 21 annual instalments and interest of 10

per cent.

During the year a concession was introduced whereby, in cases where a building in multiple ownership existed on the lot at the date of application for re-grant, payment by instalments could continue even if further sales of undivided shares took place. Before the introduction of this concession the premium had to be paid by lump sum if sales had taken place within five years of date of application; similarly where the premium was payable by instal- ments, the outstanding balance of premium had to be paid up on any sale taking place after re-grant.

On re-grant, 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 re-granted. In these cases the government has announced its intention to pay ex-gratia compensation for buildings. For churches and temples already on non-renewable leases, which were originally granted free of premium, new leases may also be granted free of premium.

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