ENG-1977 — Page 158

HOUSING AND LAND

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Land for social purposes, such as schools and hospitals to be developed by private non-profit-making bodies, also is granted by private treaty. Land for public housing is allocated to the Housing Authority, and grants at a proportion of premium also are made to the Hong Kong Housing Society for the construction of low-rent housing. It also is government policy to modify, in certain areas, old lease conditions that severely restrict the development permitted on a lot to allow development complying with the town planning requirements applicable to that area. A premium equivalent to the difference in land value between the development permitted under the existing lease and that permissible under the new lease terms is normally payable for any modification granted.

A premium also is payable if a lot held on an expired lease is regranted to the former owners. Special arrangements have been introduced to deal with expired leases where the ownership was divided among a number of flat-owners on the lot. In the case of the owners of property, the leases of which give them the option to renew the lease for a further_term, special legislation was enacted in 1973 to introduce a new Crown rent related to the rateable value of the property situated on the lot.

The premium for commercial and residential sites is usually payable soon after the sale. But where the premium exceeds $10 million, it may be paid by equal annual instalments bearing interest at 10 per cent a year. The premium for industrial sites, irrespective of the amount, can be paid either by four equal instalments over two years without interest or by 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 a year.

Important Transactions

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Arrangements were made during the year for the handing back to the government of further areas of land previously used by the British Ministry of Defence, including an additional 2.11 hectares at Sham Shui Po Camp.

The private treaty grant of land at Brick Hill for Ocean Park was completed and this new major attraction opened to the public in January, 1977.

In the New Territories, a number of important land transactions for private residential and industrial projects took place during the year. Among these was the Hong Lok Yuen Garden Estate, two miles north of Tai Po, for which a lease was granted in March for the development of a private residential estate to provide accommodation in a rural garden setting for about 6,000 people. This project involves more than 51 hectares of former agricultural land. The owners will spend $30 million developing the site in three stages over an eight-year period. The development will include limited commercial facilities for the residents, as well as community and clubhouse facilities.

On Tsing Yi Island, two areas were granted in February for special industrial purposes. One involved some 4,790 square metres granted by private treaty to Chemsyn Limited for the manufacture and storage of chlorine, hydrogen and textile chemicals and ancillary purposes. The other was a parcel of foreshore and sea bed, 1.2 hectares in area, granted by private treaty to Tai Tung Industrial Equipment Limited for the manufacture, assembly and maintenance of machinery and industrial equipment, including the storage of such machinery and equipment and completed