ENG-1976 — Page 154

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HOUSING AND LAND

Where premises become vacant and the landlord wishes to let to a new tenant, the parties are free to agree the rent payable but have to inform the Commissioner. He has wide powers under the ordinance and also issues certificates to assist in dis- putes as to the primary user of premises. Where landlords or tenants are dissatisfied with the increase of rent certified, there is a right of review by an independent Rent Tribunal and also of appeal to the District Court.

All new housing completed between December 15, 1973 and December 31, 1978 enjoys five years of freedom from any new or extended rent controls from the date of the occupation permit. It is the aim of the government, in giving this important concession, to encourage new housing development in the private sector to meet the current shortage of domestic accommodation.

Land

All land in Hong Kong is owned by the Crown, which sells or grants leasehold interests. In the early days of Hong Kong, Crown leases were for terms of 75, 99 or 999 years. They have now been standardised in the urban areas of Hong Kong and Kowloon to a term of 75 years, usually renewable for a further 75 years at a reassessed Crown rent under the provisions of the Crown Leases Ordinance. Crown leases for land in the New Territories and New Kowloon are normally sold for the residue of a term of 99 years less the last three days as from July 1, 1898, and so terminate three days before the expiry of the lease from China.

The government's basic policy is to sell land to the highest bidder at public auctions. The majority of land available to the general public for commercial, indus- trial or residential development is sold in this way. Regular land auctions are held by the government and a provisional sales forecast is published twice a year, listing the Crown land which will become available during the following six months. Leases for certain special purposes are offered for sale by public tender.

In addition the government-by way of private treaty-grants land for capital- intensive industries which in the opinion of the government are beneficial to Hong Kong and require large tracts of land. Land is also granted by private treaty to non- profit-making bodies for purposes such as schools and hospitals.

Land administration of Hong Kong Island, Kowloon and New Kowloon is the responsibility of the Director of Public Works. He is also the Building Authority and chairman of the Town Planning Board. The Secretary for the New Territories is re- sponsible for land administration in the New Territories apart from New Kowloon.

Premium for commercial and residential sites is usually payable shortly after the date of sale, but where the premium exceeds $10 million it may be paid by 10 equal annual instalments bearing interest at 10 per cent per annum. Premium for industrial sites, irrespective of the amount of premium, can be paid either by four equal instalments over two years without interest or by paying 10 per cent of the premium soon after the auction and the remaining 90 per cent by 10 equal annual instalments bearing interest at five per cent per annum.