Land Disposal

All land within the HKSAR is state property, and the Government is responsible for its disposal and management. Government land identified as being suitable for private development may be sold by public auction or tender. Land is also made available by private treaty grant at nominal land premium to the Hong Kong Housing Authority for providing subsidised home ownership flats, and to non-profit-making educational, medical and charitable institutions for operating schools, hospitals and social welfare and other community facilities. Land grants at reduced land premium are made to the Hong Kong Housing Society for subsidised housing land projects, and at full market value premium to public utility companies for their installations and related developments.

New government land leases are normally granted at premium for 50 years from the date of grant and subject to an annual rent equivalent to three per cent of the rateable value of the property at the date of grant, adjusted in step with any changes in the rateable value thereafter.

Every year, the Lands Department announces a one-year Land Sale Programme and a four-year Land Development Programme, which cover land for housing and non-housing development in a five-year period. The Land Sale Programme includes a detailed programme for public land auctions and tenders. Since April 1999, a new procedure for land sale by application has been introduced to provide flexibility in allowing the market to determine the amount of additional land required to meet market demand.

During the year, 10 sites for private housing with a total area of 5.36 hectares were sold. Five sites for the Home Ownership Scheme and five sites for the Tenant Purchase Scheme, with total areas of 17.54 and 36.08 hectares respectively, were granted to the Hong Kong Housing Authority. One site for the Flat-for-Sale Scheme, with an area of 1.12 hectares, was granted to the Hong Kong Housing Society. Other major land grants included a 22.4-hectare site for the power station at Lamma Island.

In addition to the Land Sale Programme, the existing large number of privately held leases can be amended, normally at premium, on lease-holders' initiatives to provide for a more intensive or different type of development in accordance with the prevailing planning intentions. These amendments are effected by either lease modification or land exchange. During the year, 163 such transactions were concluded, involving a total of 241.18 hectares.