ENG-1990 — Page 252

LAND, PUBLIC WORKS AND UTILITIES

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 Compen- sation) Ordinance. These ordinances provide for payment of compensation based on the value of property at the date of acquisition. If agreement cannot be reached on the amount payable, either party can refer the claim to the Lands Tribunal for adjudication.

Where land is acquired in the New Territories, a system of ex-gratia payments applies, with enhanced rates for land situated within the new town development areas and pro- gressively lower rates for land situated outside these areas. In the case of building land, an ex-gratia payment is offered in addition to the statutory compensation. A system of ex-gratia payments also applies in the case of old scheduled lots acquired in the urban area. During 1990, about 0.4 million square metres of private land were acquired in the New Territories to carry out various public works projects. The total land acquisition and clearance costs involved amounted to about $0.75 billion. These projects included the Junk Bay Landfill Stage I Phases V and VI; the Yuen Long-Tuen Mun Eastern Corridor and Yuen Long West Link; the Tolo Harbour Effluent Export Scheme (access shaft site at Fa Sam Hang in Sha Tin), and the construction of pylons to carry 400KV overhead transmission lines from Tai Po to Sha Tau Kok and from Yuen Long to Ta Kwu Ling.

In the urban areas of Hong Kong Island and Kowloon, about $1.0 billion was paid in compensation for land and buildings acquired during the year for public works projects, either under compulsory powers or by agreement. These projects included the Tate's Cairn Tunnel and Approaches; the Lung Cheung Road and Hammer Hill Road Grade Separat- ed Interchanges; the Fung Tak Road Extension; the Wyndham Street and Connaught Road Improvement; the Hillside Escalator Link between Central and Mid-levels, and the Kowloon Walled City Clearance.

Land Disposal

All land in Hong Kong is held by the government which sells or grants leasehold interests. Such grants and leases are now made in accordance with the terms set out in Annex III to the Sino-British Joint Declaration. The total amount of new land to be granted is limited to 50 hectares a year, excluding land to be granted to the Hong Kong Housing Authority for public rental housing, although the Land Commission may increase this limit. Premium income obtained from land transactions is shared equally, after deduction of the average cost of land production, between the Hong Kong Government and the future Hong Kong Special Administrative Region Government.

Normal land grants and leases 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.

Land Sales

The property market was stable in 1990, both in the sales and rental fields, although performance in the various sectors was mixed. The market for small to medium sized flats was very active; the luxury residential market less so. Because supply increased considerably, the office market remained soft. For the same reason, little improvement occurred in the shopping sector although prime locations were much in demand as always. The industrial sector remained weak apart from storage space in well located areas.

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