ENG-1985 — Page 201

LAND, PUBLIC WORKS AND UTILITIES

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the whole of the territory are now made for terms expiring not later than June 30, 2047. They are made at a premium and nominal rental until June 30, 1997, after which date an annual rent equivalent to three per cent of the property's rateable value will apply. Leases expiring in or before 1997, with the exception of short-term tenancies and leases for special purposes, may also be extended to 2047 under the provisions of the Joint Declaration and steps are being taken to enact the necessary legislation for this purpose.

The first priority with regard to land supply is to make available sufficient land for the government's development programmes, including the public housing programme. Land for the Hong Kong Housing Authority's public rental estates is provided free by the government, as is land for the residential element of the authority's Home Ownership Scheme. Land for the rental estates constructed by the Hong Kong Housing Society, a non-profit-making body with aims similar to those of the Housing Authority, is provided on concessionary terms. Land is also granted by private treaty, at nil or nominal premium, to non-profit-making charitable institutions which operate schools, hospitals, and social welfare and other community services in accordance with the government's policy objectives.

Most land available for private sector commercial, industrial or residential development is sold by public auction or tender. The formulation of overall targets for the production and sale of land is carried out under the auspices of the Land and Building Advisory Committee. Regular auctions are held by the government and a six-monthly provisional government land sales forecast is published twice a year. In the towns of the New Territories, however, where much of the land required for development has to be resumed, a high proportion of land is disposed of by tender. Since 1984, it has been possible for the holders of Land Exchange Entitlements to bid in auction and tender sales of New Territories sites and certain urban area sites by offering surrender of these entitlements in lieu of cash. However, owing to the upturn in the property market in 1985 and the consequential increase in the value of these entitlements, owners and developers were less willing to take up this option.

Leases for certain special purposes, which have particular site requirements or other factors which would make public auction inappropriate, are also offered for sale by public tender. Such special purposes include capital intensive industry, introducing higher technology which cannot be adequately housed in more conventional multi-storey flatted factory buildings. Such sales are initiated only in response to formal applications and, in certain circumstances, may be concluded by private treaty, subject to the approval of the Governor in Council.

Land Office

The issue, renewal, variation and termination of government 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 the few exceptional New Kowloon lots are kept at District Land Offices.

The Registrar General's Department is assuming responsibility for land registration throughout the New Territories under a phased programme: the District Land Offices in Tsuen Wan and Yuen Long were taken over in 1982, the Sha Tin office in 1983, the Sai Kung office in 1984 and the Tuen Mun office in 1985.