ENG-2010 — Page 275

Infrastructure Development and Heritage Conservation 225

arrangement by designating nine residential sites in a 2010-11 'List of Sites for Sale by Application' for government-initiated sale. The Government will, depending on market conditions, put these sites up for sale by auction or tender if they are not triggered for sale.

In the light of the average annual take-up rate of 18 500 first-hand private residential flats in the past 10 years, the Government feels that on average, land is needed for some 20 000 private residential flats annually over the next 10 years to ensure a healthy and stable property market. This is not a fixed target for private residential flat production. The aim is to build up a sufficiently large land reserve over a period of time to ensure a stable land supply for the residential property market. The Steering Committee on Housing Land Supply, chaired by the Financial Secretary, is co-ordinating the work of the departments concerned to ensure the plan is given priority.

To increase the supply of small and medium sized flats, the Government has tendered the ex-Yuen Long Estate site for such flats with restrictions on their size and number.

Land Acquisition

Acquisition of private land for public use may be achieved through negotiation. or resumption under the relevant ordinances which provide for compensation for the property's value at the date of acquisition and for the loss of business. If agreement. on the amount of money to be paid cannot be reached, either party may go to the Lands Tribunal for adjudication. There are simplified assessment procedures for achieving early release of payment to facilitate land clearance. Some 48 944 square metres of private land, comprising about 129 square metres of building land and 48 815 square metres of agricultural land, were acquired in 2010. Compensation amounting to $315 million was paid during the year.

The Lands Department was also involved in the resumption of land for urban renewal projects. During the year, compensation totalling $56,7 million was paid to owners of 79 resumed properties and occupiers affected by 20 urban renewal projects. Some 47 hectares of land, including underground strata for the West Island Line and the Hong Kong Section of Guangzhou-Shenzhen-Hong Kong Express Rail Link, were resumed and compensation amounting to $1.15 billion was paid in 2010.

Land Disposal

Disposal of Government land is usually done through public auction or tender. In 2010, 11 residential sites, six petrol filling stations, one business site and one logistics development site covering an area of about 15.25 hectares were sold for about $45.245 billion.

For leased land, lessees (normally referred to as 'private landowners') who wish to change the terms of their existing leases say, for carrying out a redevelopment in accordance with the prevailing plan, may apply to the Lands Department for a lease modification or land exchange. Such applications will be considered by the department acting as private landlord. Approvals are subject to terms and conditions,