Land Disposal

All land within the HKSAR is state property. The government is
responsible for the management, use and development of the land and for
its lease or grant to individuals, legal persons or organisations for use or
development. From July 1, 1997, leases of land are normally for a term of
50 years from the date of grant on payment of a premium and subject to
an annual rent equivalent to three per cent of the rateable value of the
property at that date, adjusted in step with any changes in the rateable
value thereafter. The 50-year lease term from the date of grant avoids the
situation where too many leases expire on the same day, thereby allowing
the extension of leases to be dealt with individually.

In July 1997, the government announced its first five-year land disposal
programme (on a financial year basis), which will be updated and rolled
forward a year for announcement before the start of each financial year.
The programme will be site specific for the first two years and more
general (in terms of land use and hectarage) for the following three. This
information will provide a clearer picture on land supply and facilitate
planning by developers.

To help meet the Chief Executive's flat production target of 85 000 units
per year, the Lands Department has assumed a direct role in the private
sector's contribution towards the target. All transactions are closely
monitored from the date of initial site availability right through to consents
to sell and occupation.

The department has also streamlined its procedures in land exchanges and
modifications, and is assisting the private sector to redevelop all available
and suitable land for early residential development.

Although most government land available for private sector development
is sold by public auction or tender, land is also made available at nominal
premium to the Housing Authority for its public rental estates and Home
Ownership Scheme, and to non-profit-making charitable, medical and
educational institutions which operate schools, hospitals, and social
welfare and other community services. During the year, 19 sites for
housing (including some at Chai Wan, Repulse Bay, Hung Hom and
Stanley) with a total area of 24 hectares were sold; seven sites with a total
area of 16 hectares were granted for the Home Ownership Scheme; and
three sites with a total area of five hectares were sold for the Private
Sector Participation Scheme.

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