ENG-1972 — Page 128

8

Land and Housing

ALL land in Hong Kong is owned by the Crown. In the early days of this British territory Crown leases were granted for 75, 99 or 999 years. With the exception of the New Territories, they are now granted for 75 years, usually renewable for a further 75 years at a reassessed Crown rent. Crown leases for New Territories land are now normally granted for a period of 99 years, less three days, from July 1, 1898 and so terminate three days before the expiry of the period of the lease from China.

Land administration in Hong Kong and Kowloon is the responsibility of the Director of Public Works, who is also the Building Authority and Chairman of the Town Planning Board. The Director also deals with that part of the New Territories between Boundary Street and the Kowloon foothills, called New Kowloon. The Dis- trict Commissioner, New Territories, is responsible for land administration throughout the rest of the New Territories. All leases of Crown land and private land transactions are recorded for Hong Kong and Kowloon in the Registrar General's Department, and for the New Territories (with the exception of certain inland lots) in the District Offices of the New Territories Administration. The inland lots in the New Territories are mostly located in the built-up area of New Kowloon and deeds relating to them, with a few exceptions, are recorded in the Registrar General's Department. The prin- cipal laws relating to the development and use of land are contained in the Buildings Ordinance, the Town Planning Ordinance and the New Territories Ordinance.

The government's basic policy is to sell leases to the highest bidder at public auction. All land available to the general public for commercial and industrial purposes and for residential sites is sold in this way. The realised premium is payable by a percentage of the upset price on the fall of the hammer and the balance within a short period after the sale, except in the case of industrial lots where it can be paid by in- stalments. In 1969 a change was introduced in respect of sites of high value in central areas when the upset price of the site was $10 million or more, providing for payment by annual instalments over 10 years free of interest; during 1971 this was further amended to provide for payment by instalments with 10 per cent of the realised price being payable within one month of the auction, the balance being payable by 10 equal annual instalments bearing interest at 10 per cent a year. Land for special housing projects, for public utilities, schools, clinics and approved charitable purposes is usually granted by private treaty. The premium charged in such cases varies from nothing for non-profit-making schools up to the full market value and payment by instalments for public utilities.

To assist owners of industrial lots where the premium is payable by instalments, there is a concession which, subject to certain conditions, permits the sub-letting of parts of the building without having to pay the outstanding balance of premium.