ENG-1991 — Page 240

LAND, PUBLIC WORKS AND UTILITIES

Land Acquisition

When private property is needed for the implementation of public works projects and 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. 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 being paid for land situated within the new town development areas and progressively 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 available. A system of ex-gratia payments also applies in the case of old scheduled lots acquired in the urban area. Additionally, an ex-gratia allowance, known as a Home Purchase Allowance, is normally paid upon resumption of pre-war and post-war domestic units within the urban area,

During 1991, about 0.58 million square metres of private land was acquired in the New Territories to carry out various public works projects. The total land acquisition and clearance costs amounted to about $1.21 billion. These projects included land formation works for the replacement Airport at Chek Lap Kok; Ping Shan Development Stage I; North East New Territories Landfill site and associated projects, and the North West New Territories Development Yuen Long Southern Bypass.

In the urban areas of Hong Kong Island and Kowloon, about $0.77 billion was paid during the year in compensation for land and buildings acquired for public works projects either under compulsory powers or by agreement. These projects included the Tate's Cairn Tunnel and Approaches, 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 not to exceed 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 and regularly does so. The land disposal limit this year is 81.285 hectares with a 5-hectares reserve. 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 very buoyant in 1991 after the announcement of the agreement on the new airport. Very high prices were obtained for land sales with a price in excess of

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