ENG-1984 — Page 227

176

LAND, PUBLIC WORKS AND UTILITIES

(As from the date of coming into force of the Sino-British Joint Declaration on the future of Hong Kong, the policy with regard to land grants and leases will be governed by the provisions of Annex III to the Joint Declaration).

The formulation of overall targets for the production and sale of land is the responsibility of the Special Committee on Land Supply, which is advised by the Lands Department and other departments. A Land Disposal Sub-committe formulates and monitors a land sales programme, while specific sites are identified and collated in the Lands Department.

The year saw the continuing low level of both values and development activity that had been detected in the previous year. Conscious of the need to sustain private sector involvement, the Lands Department has continued to respond to this position by taking a flexible and lenient approach on certain aspects of development in order to render assistance. Examples of this were the sympathetic consideration of applications for modifications to permit construction of smaller residential units, reduction in parking requirements and a reduction in the premium charged for extending the time limits imposed for completion of development.

Low-rent and low-cost housing is provided by the Hong Kong Housing Society under the Urban Improvement Scheme or by the Housing Authority and the private sector in joint ventures under the Private Sector Participation Scheme. Land for such purposes is granted by the government. In all such cases, the government reserves the right to nominate purchasers of individual flats provided under the scheme.

It is also government policy, in certain areas, to modify old lease conditions which restrict the development permitted on a lot in order to allow redevelopment complying with the applicable town planning requirements. 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 is also payable where a lot held on an expiring non-renewable 75-year lease is re-granted to the former owners. Special arrangements were introduced to deal with expired leases where the ownership is divided among a number of owners. In the case of the owners of property, the leases of which give them the option to renew the lease for a further term, the Crown Leases Ordinance imposes a new Crown rent related to the rateable value of the property situated on the lot. This ordinance has been in effect since 1973.

An important change in land sales policy was introduced in 1984 when, for the first time, the surrender of land exchange entitlements was accepted as an option in lieu of cash for sale by auction and tender of sites in the New Territories. This, together with the acceptance of these entitlements as payment for other forms of land related transactions, proved to be very popular with land owners and developers who had continued to feel the affects of low property values and high interest rates. It is intended that the 'currency value' of the land exchange entitlements will be reviewed at six-monthly intervals to reflect changes in the property market.

Land Office

The issue, renewal, variation and termination of Crown leases are dealt with by the Land Office, a division of the Registrar General's Department. Records of transactions relating to land on Hong Kong Island, in Kowloon, New Kowloon (with a few exceptions) and some of the urban areas of the New Territories are kept at the Land Office. Records relating to transactions affecting the remainder of the New Territories and a few exceptional New Kowloon lots are kept at district land offices, most of which are at present operated by the Lands Department. The Registrar General's Department is assuming responsibility for