Real estate market
Written by: Xu Shihao
2019-11-27 20:10
Last updated: 2019-11-27 20:10The "Basic Law" guarantees that "Hong Kong will remain unchanged for 50 years" after the reunification. Therefore, many people discuss the issue of the "2047 limit" on land. They are worried that the "one country, two systems" policy may not continue to be implemented after 50 years, and land titles that expire may become waste paper.
In response to written enquiries by members of the Legislative Council, the Secretary for Development, Mr Wong Wai Lun, stated that according to the Government's policy statement in July 1997, land leases (excluding short-term leases and special-purpose leases) that do not have the right to renew may be fully vested in the government upon expiration At your discretion, you can renew for 50 years without paying additional land prices, but you must pay rent each year.
He pointed out that the amount was equivalent to 3% of the rateable value of the land concerned, and the rent would be adjusted afterwards in accordance with changes in the rateable value. According to this policy, after the establishment of the SAR Government, the lease terms granted are generally 50 years and span 2047 years.
The current lease term granted by the government is generally 50 years and spans 2047. (Profile picture)
Title deed expires as soon as 2025
Huang Weilun also said that according to the data compiled by the Lands Department according to the information provided by the Land Registry, the land leases currently in effect and involving general commercial / residential / industrial land lots have an expiry date of 2025 at the earliest. From 2025 to June 29, 2047, a total of approximately 2,400 land leases for general commercial / residential / industrial uses (calculated by section) have expired. Information on the number of equity shares involved is being prepared.
Government: there are policies and mechanisms to deal with land lease renewal
He reiterated that the government has policies and mechanisms to deal with the renewal of land leases, and is also exploring whether there are other suitable arrangements for renewing in a more streamlined and convenient manner. Specific arrangements will be announced in due course.
As to whether the financial institution has refused to grant a mortgage loan for the property on the land beyond the term based on the relevant land lease expiring in the middle of 2047. He pointed out that the HKMA believed that the government's explanation had properly and comprehensively responded to the concerns of the banking industry and could not see the need for banks to change their existing mortgage policies. In fact, there are already banks that have approved mortgage loans with a term that is longer than the lease terms of the relevant buildings. The HKMA has not received any complaints in this regard.
Land Sharing Plan Accepts Application Next Year Huang Weilun: Plan Full Consultation
Planning Department announces brownfield study report
Basic Law Land Tendering