Land Registry Trading Fund Results 2004/05
****************************************** The increase in property transactions during 2004/05 and firm control of costs allowed the Land Registry Trading Fund to report strong financial results despite a significant reduction in fees charged, the Land Registrar, Mr Kim Salkeld, said today (October 19).
"The Registry is in robust financial health and has laid the groundwork for improving the quality of services that it can give to Hong Kong for many years to come", said Mr Salkeld, commenting on the report of the Land Registry Trading Fund for 2004/05.
"With enactment of the Land Titles Ordinance in July 2004, and with the launch of Central Registration and the Integrated Registration Information System (IRIS) in February, 2005 the Land Registry has taken major steps towards modernising Hong Kong's Land Registration system".
The Land Registry Trading Fund's audited after-tax profit for the year ended March 31, 2005 was $138.1 million. This was an increase of 54.3% over the previous year.
Turnover increased by $73 million (20.1%) to $435.3 million, marking the first year of increased revenue since 1999/2000. Despite reduction of statutory fees for search and copying services by between 16% and 36% in February 2005, revenue had not fallen due to increased demand. The easier access to search and copying services for the public and small businesses after the launch of the IRIS internet service contributed to the increase in use of Land Registry information services. The resurgence of activity in the property market also brought an increase of income from registration fees.
Operating costs rose by $2.1 million (0.8%) to $273 million. This was due to the substantial increase in depreciation and amortisation costs for the new IT system, an increase of $13.2 million (127.1%) to $23.7 million. This offset reduced staff costs (down by $13 million or 6.4%) and reduced rental and management charges (down by $0.9 million or 4.1%).
The net profit represented an annual rate of return on average net fixed assets of 32%. The Trading Fund is required to provide a return on average net fixed assets of at least 10%. Over the year, the value of net fixed assets increased by 4.4%.
The Trading Fund will pay notional profits tax of $28 million, an increase of $22.4 million compared with 2003/04. The dividend to the Capital Investment Fund will be $69.1 million, an increase of 54.3% compared with $44.8 million for the last year.
These figures were released in the 12th Annual Report of the Land Registry Trading Fund tabled by the Secretary for Housing, Planning and Lands, Mr Michael Suen, in the Legislative Council today.
The introduction of Central Registration marks the completion of a process to create a unified land registration service begun in the early 1980s. The whole of Hong Kong is now served by an integrated registration service. Efficiency and productivity have been increased, improving service delivery and helping to reduce charges to customers.
"I commend the men and women of the Land Registry for substantial accomplishment that have improved the service we give to Hong Kong," Mr Salkeld said.
He noted that with the enactment of the Land Titles Ordinance on July 23, last year, the next five years would see more profound change for the Land Registry than at any time in its history. The advent of title registration will change the legal basis of the Land Registry's work and change its responsibilities. The new system will give greater certainty over title and simplify conveyancing.
"Looking forward, there is much more that we have to do together to accomplish what we have set out to achieve - giving Hong Kong registration services that are second to none in the efficiency and value that they give to society," said Mr Salkeld.
The full report of the Land Registry Trading Fund can be viewed on, or downloaded from, the Land Registry website at www.landreg.gov.hk.
****************************************** The increase in property transactions during 2004/05 and firm control of costs allowed the Land Registry Trading Fund to report strong financial results despite a significant reduction in fees charged, the Land Registrar, Mr Kim Salkeld, said today (October 19).
"The Registry is in robust financial health and has laid the groundwork for improving the quality of services that it can give to Hong Kong for many years to come", said Mr Salkeld, commenting on the report of the Land Registry Trading Fund for 2004/05.
"With enactment of the Land Titles Ordinance in July 2004, and with the launch of Central Registration and the Integrated Registration Information System (IRIS) in February, 2005 the Land Registry has taken major steps towards modernising Hong Kong's Land Registration system".
The Land Registry Trading Fund's audited after-tax profit for the year ended March 31, 2005 was $138.1 million. This was an increase of 54.3% over the previous year.
Turnover increased by $73 million (20.1%) to $435.3 million, marking the first year of increased revenue since 1999/2000. Despite reduction of statutory fees for search and copying services by between 16% and 36% in February 2005, revenue had not fallen due to increased demand. The easier access to search and copying services for the public and small businesses after the launch of the IRIS internet service contributed to the increase in use of Land Registry information services. The resurgence of activity in the property market also brought an increase of income from registration fees.
Operating costs rose by $2.1 million (0.8%) to $273 million. This was due to the substantial increase in depreciation and amortisation costs for the new IT system, an increase of $13.2 million (127.1%) to $23.7 million. This offset reduced staff costs (down by $13 million or 6.4%) and reduced rental and management charges (down by $0.9 million or 4.1%).
The net profit represented an annual rate of return on average net fixed assets of 32%. The Trading Fund is required to provide a return on average net fixed assets of at least 10%. Over the year, the value of net fixed assets increased by 4.4%.
The Trading Fund will pay notional profits tax of $28 million, an increase of $22.4 million compared with 2003/04. The dividend to the Capital Investment Fund will be $69.1 million, an increase of 54.3% compared with $44.8 million for the last year.
These figures were released in the 12th Annual Report of the Land Registry Trading Fund tabled by the Secretary for Housing, Planning and Lands, Mr Michael Suen, in the Legislative Council today.
The introduction of Central Registration marks the completion of a process to create a unified land registration service begun in the early 1980s. The whole of Hong Kong is now served by an integrated registration service. Efficiency and productivity have been increased, improving service delivery and helping to reduce charges to customers.
"I commend the men and women of the Land Registry for substantial accomplishment that have improved the service we give to Hong Kong," Mr Salkeld said.
He noted that with the enactment of the Land Titles Ordinance on July 23, last year, the next five years would see more profound change for the Land Registry than at any time in its history. The advent of title registration will change the legal basis of the Land Registry's work and change its responsibilities. The new system will give greater certainty over title and simplify conveyancing.
"Looking forward, there is much more that we have to do together to accomplish what we have set out to achieve - giving Hong Kong registration services that are second to none in the efficiency and value that they give to society," said Mr Salkeld.
The full report of the Land Registry Trading Fund can be viewed on, or downloaded from, the Land Registry website at www.landreg.gov.hk.
Ends/Wednesday, October 19, 2005
Issued at HKT 11:41
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