ENG-1986 — Page 201

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LAND, PUBLIC WORKS AND UTILITIES

the urban areas of Hong Kong Island and Kowloon to a term of 75 years, renewable at a reassessed annual rent under the provision of the Crown Leases Ordinance. Leases for land in the New Territories and New Kowloon were normally sold for the residue of a term of 99 years less three days from July 1, 1898.

In accordance with Annex III to the Sino-British Joint Declaration, normal land grants throughout 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 which will be adjusted in step with changes in the rateable value thereafter. Leases expiring in or before 1997, with the exception of short-term tenancies and leases for special purposes, may also be extended to 2 047 under the provisions of Annex III to the Joint Declaration without payment of an additional premium. An annual rent equivalent to three per cent of rateable value will be charged in the same way as for the grant of new leases.

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 Housing 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 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-month provisional land sales forecast is published. In 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 tenders of New Territories sites by offering surrender of these entitlements in lieu of cash.

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 tech- nology 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.

Land Acquisition

When private property needed for carrying out public works projects cannot be acquired by negotiation, the use of compulsory powers becomes necessary. Property may then be acquired under either the Crown Lands Resumption Ordinance, the Land Acquisition (Possessory Title) Ordinance, the Mass Transit Railway (Land Resumption and Related Provisions) Ordinance, or through the Roads (Works, Use and Compensation) Ordinance in the case of land required for road projects. These ordinances provide for the payment of compensation based on the value of the affected properties as at the date of reversion. If agreement cannot be reached on the amount payable, either party can refer the claim for compensation to the Lands Tribunal for determination.