Presentation to
The Hong Kong Institute of Architects
by Miss Annie Tam, JP
Director of Lands
To Supply Land for Private Development
24 June 2010
1
Land Administration
Article 7 of the Basic Law:
The land and natural resources within the
Hong Kong Special Administrative
Region shall be State property. The
Government of the Hong Kong Special
Administrative
Region
shall
be
responsible for their management, use and
development and for their lease or grant to
individuals, legal persons or organizations
for use and development. The revenues
derived therefrom shall be exclusively at
the disposal of the government of the
Region.
2
Total Area of the Hong Kong Special
Administrative Region: 110 397 hectares
73 741 hectares
(67%): private
developments,
country parks,
land for public
bodies and
infrastructural
facilities
36 656 hectares
(33%): managed
by the Lands
Department
(excluding land
allocated to other
government
departments)
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- Land Sale
- Land Grant (or Regrant)
- Short Term Tenancy
Unleased land (Government Land)
Leased land (Private Land)
- Lease Modification (Waiver)
- Consent
- Surrender
- Resumption
- Re-entry
 LandsD acting as Government’s land agent
 LandsD acting in the landlord capacity
4
Land Sale: 2010 - 2011 Application List
 The 2010-11 Application List contains 62 sites,
comprising 46 residential sites, 8 commercial/business
sites and 8 “hotel only” sites
 The 46 residential sites will produce about 9 000 flats
 The 8 commercial/business sites will yield about
322 200 square metres of GFA (subject to survey)
5
Government’s Initiated Sales of Sites in the Application List
 Homantin site sold on 8 June 2010 at $10,900 million
 Mt Nicholson site to be sold on 28 July 2010
 Inverness Road, Kowloon Tong
 Borrett Road, Mid-Levels West
 Former Lingnan College site at Stubbs Road
 Ex-Government Supplies Depot site at Oil Street, North Point
6
Public Tender of Former Yuen Long Estate Site

The Government is prepared to sell by open tender the
former Yuen Long Estate site of about 1.2 hectares near
the West Rail Long Ping Station in Yuen Long for private
residential purpose, and will increase the supply of small
and medium-sized flats by specifying in the land sale
conditions requirements in terms of the minimum number
of flats and the range of size of such units
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Short Term Tenancy
 A grant of land of short duration
 Normally up to 7 years
8
Private Treaty Grant
 For specified purposes under exceptional
circumstances
 Supported by policy bureau
 Meets the economic, social and community
needs of Hong Kong
9
Lease Modification
Lease is:
 A contract between the Government acting as the landlord and the
lessee
 A lease includes terms and conditions
 Premium payable to reflect the market value of the land
 Lease can be changed subject to mutual consent and terms and
conditions including premium reflecting the difference between
the “before” value and the “after” value
10
Lease Modification (Waiver)

The lessee will have to submit an application for lease
modification if he/she wants to change the use of the land to
purposes other than those specified in the lease.

LandsD, acting in the landlord capacity, may or may not
approve the application at our sole discretion.

New conditions will be imposed in the letter of modification,
but the tenure remains.

The applicant will have to pay a land premium representing
the difference of land value before and after the lease
modification.
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Granting of consent under the lease
 The “consent” is provided for under some leases.
 LandsD, as the landlord, is entitled to grant or not to grant such
consent at its discretion at conditions including premium.
 The grant of a consent for redevelopment is similar to the making
of a fresh agreement.
12
Land Exchange (Surrender and Regrant)
 A lessee may apply to surrender a land to LandsD; if the
surrender is accepted, it becomes Government land.
 LandsD may agree to grant [regrant] the original land (or part
of it) with or without additional Government land.
 The regrant is a new grant.
 The new grant contains new terms and conditions, normally
50 years.
 The lessee has to pay a premium to reflect the difference
between the before value of the land and the after value of the
land.
13
Revitalize Industrial Buildings – An example (1)
A lot owner who wishes to apply during 1 April 2010 to 31
March 2013 for :
(a) a lease modification or a land exchange for the redevelopment
of an industrial lot in a non-industrial zone; or
(b) a special waiver for conversion of an entire existing industrial
building of not less than 15 years old situated in a zone
designated for use as either “Industrial”, “Commercial” or
“Other Specified Uses (Business)” according to the statutory
town plans prepared pursuant to the Town Planning Ordinance.
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Revitalize Industrial Buildings – An example (2)
Redevelopment
 An application may be made for redevelopment of the lot
concerned for non-industrial uses up to or less than the
maximum permissible development intensity permitted under the
relevant statutory town plan or, if there is no such limit under the
statutory town plan, the Buildings Ordinance (“BO”).
 An application will generally not be approved if the proposed
development intensity for the redevelopment is less than 60% of
the maximum permissible development intensity permitted under
the relevant statutory town plans or (if applicable) the BO.
 Any such application, if approved by LandsD, would be subject
to such terms and conditions, including payment of a premium.
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Redevelopment (cont’d)
 If the premium exceeds $20 million, a lot owner may opt for
payment of 80% of the premium by annual installments, payable
in arrears, over a period of up to five years subject to payment of
interest at P + 2%.
 In the event that a lot owner has opted for payment of the
premium by installments, 20% of the premium shall be paid as a
down payment, that is, 10% of the premium being payable upon
acceptance of the binding basic terms offer and the remaining
10% on execution of the lease modification letter.
16
Revitalize Industrial Buildings – An example (3)
Wholesale Conversion
 An owner may apply for a special waiver at nil waiver fee for the
change of use of the entire existing industrial building, for the
lifetime of the existing building or until expiry or termination of
the current lease, whichever is the earlier.
 Approval for the grant of a special waiver may be subject to such
terms, covenants and conditions as may be imposed.
 During the validity period of the special waiver, no part of the
building may be used for any uses other than those specified in
the special waiver.
17
Associated works arising from Land Sale/Land Grant/
Lease Modification/Land Exchange/Consent
 Processing of building plans
 Processing of landscaping proposal
 Processing of CC application
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Processing of Building Plans Submissions – (1)
 Building plans for developments on private lots are
processed under the Centralized Processing of
Building Plans managed by Buildings Department
- BD will pass building plans with the development
schedules to LandsD
- BD considers the plans under Buildings Ordinance
- PlanD examines the plans having regard to the TPO
- LandsD will reply to the AP direct having regard to the
lease conditions governing the lot
19
Processing of Building Plans Submissions – (2)
 Upon receipt of the plans from BD, DLO will
attempt to give a response to the AP within 10
weeks.
 When there is MLP requirement, GBP will only be
processed after the approval/conditional acceptance
of MLP.
20
Processing of Building Plans Submissions – (3)
 DLO will check the plans against the lease conditions, e.g.
height, GFA, SC etc.
 Complex cases may be referred to BC III.
 BC III is chaired by DD/S with members coming from BD,
TD, HyD, PlanD, ArchSD and Senior Landscape Architect.
 AP may be invited to the meeting to present their cases.
21
Processing of Building Plans Submissions – (4)
 Specific issues
(1) Height of building
- Unless specified in the lease, height of a building counts
from the lowest formation level (including stilts) to the
highest point (main roof) of the building.
- Stilts are not preferred.
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Processing of Building Plans Submissions – (5)
(2) Number of storey
- Number of storey counts from the lowest formation level
of a building.
- Unless specifically exempted under the lease, all floors
including basements and carparking floor are number of
storey accountable.
- Normal roof-top structures (e.g. stairhood, water tank, lift
machine room) are not number of storey accountable if
they are not excessively provided.
23
Processing of Building Plans Submissions – (6)
(3) Accountability for GFA/SC
- Unless specifically exempted under the lease, all
components of a building including projections and
underground structures are GFA/SC accountable.
- Balconies, utility platforms, curtain walls and nonstructural prefabricated walls which are exempted by BA
are GFA/SC exemptible subject to lease modification, if
applicable.
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Processing of Building Plans Submissions – (7)
(3) Accountability for GFA/SC
(Continue)
- For GFA exemptions of plant rooms and similar facilities
permitted under lease, LandsD are normally prepared to
follow BA’s ruling.
- Staircases, lift shafts and lobbies exclusively serving
GFA non-accountable areas such as carparking floor
and/or mechanical floors, will be exempted for GFA (but
not SC) if their design and disposition are acceptable.
25
Processing of Building Plans Submissions – (8)
(4) Recreational facilities
- Unless specifically exempted under
Clubhouses are GFA/SC accountable.
the
lease,
- To qualify for exemption, ancillary facilities (e.g.
reception area, corridor, toilets) should be less than 50%
of the usable area and the active facilities (e.g. squash
court, swimming pool) areas should be larger than the
passive facilities (e.g. reading room, sauna) areas.
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Landscaping Proposal (Combined Submission)
 Preserve trees, particularly old and valuable trees
 Encourage assessment of impact of the development on
existing trees
 Early submission of conceptual landscaping proposal with
general building plans or MLP
 Felling of trees can be proceeded after approval of the
conceptual proposal
 Detailed proposal to be submitted and be approved before
application for pre-sale consent
27
Landscaping Proposal (Self-certification)
 Registered Landscape Architect to certify completion of tree
works (landscaping, tree
compensatory planting)
removal,
transplant
and
 The certificate together with a report on conditions of the
tree be submitted to DLO
 BPU will inform within 14 days if an inspection is to be
carried out
 No notice from BPU means compliance
28
Application for CC
Points to note
 PN 8/2000 on ‘Checklist for Issue of CC’
- to check compliance of positive covenants specified in
the lease
 Not to encroach onto Government land, PN 4/2008
 Performance pledge – 10 weeks to confirm issue of
CC or provide reasons for rejection
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General Principles (1)
 Lease is a contract – virtually all lands in Hong Kong are held
as leasehold lands from the Government. When selling or
granting leasehold interests, the Government does so in the
capacity of a landlord.
 Interpretation of a contract is the ascertainment of the
meaning which the document would convey to a reasonable
person having regard to all the background knowledge which
would reasonably have been available for the parties in the
situation in which they were at the time of a contract.
 In disposing of a leasehold interest, the Government does not
necessarily divest all interest in the land or sold all its
development potential. Whatever rights or interests not
disposed of in a lease remains the property of the Government.
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General Principles (2)
 The Government as a landlord is entitled to impose tighter
control than the minimum standards which the public are
prepared to accept under the Town Planning provisions.
 If the lessee wishes to build more, he has to seek the
Government’s consent for the release of more development
potential under the lease. The consent, if granted by the
Government at discretion acting as the landlord, may take
different forms e.g. lease modification, land exchange, waiver,
consent letter or no objection letter. In the case of scarce
resource such as land, the consent has to be paid for by way of
premium of waiver fee.
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～ Thank You ～
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