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2006-07 Application List for land sale announced

   The Government announced today (March 17) the 2006-07 Application List for the sale of Government land from April 2006 to March 2007.

    Speaking at a media conference to announce the new 2006-07 Application List, the Director of Lands, Mr Patrick Lau, said that the Government had indicated clearly in its statements on housing and land disposal policy on numerous occasions that land supply would be determined by market demand.

    "To implement this policy effectively and consistently, the Government will continue to supply land to the market for development through the Application List system," Mr Lau said.

    "The Application List system is market driven. It enables the market to determine flexibly the quantity, the size, the location and timing of land to be put up for sale."

    In formulating the new Application List, the Lands Department has taken into account views of the property trade, market conditions and other relevant factors such as the size, location and variety of sites.

    The 2006-07 Application List offers more sites and wider choices to developers in terms of size, location and uses. It should be able to meet the different development strategies of the developers and more importantly the needs of the community.

    "In terms of the number of sites, the 2006-07 Application List offers a total of 45 sites, of which 28 are carried over from the current Application List whilst the other 17 are newly included. Many of these new sites should be highly attractive to the market," Mr Lau said.

    The new Application List comprises 33 residential sites and 12 commercial/business sites. Depending upon the final development to be undertaken, it is estimated that the residential sites, with a total area of about 29.6 hectares, can produce around 14,000 flats. Ten of the residential sites are located on Hong Kong Island, nine in Kowloon and 14 in the New Territories and outlying islands.  

    The 12 commercial/business sites, with a total area of about 8.7 hectares, are located in areas as diverse as Central, Kowloon Bay, Tsuen Wan, Tin Shui Wai, Sai Kung, Sha Tin and Kwun Tong. Seven of the 12 sites may also be readily developed for hotel use, and the remaining may be allowed for hotel use subject to planning permission.

    "In response to the aspirations of the property sector and to facilitate participation of the medium and small-sized developers in property developments, the new Application List includes 18 sites each smaller than 0.5 hectare in area. Among these, 13 sites are for residential use and five of them are located in the urban area," Mr Lau noted.

     Since January 2004, the sale of Government land has mainly been conducted under the Application List System. A developer interested in any site on the Application List may submit an application to the Government for consideration. The applicant must offer a minimum price to purchase the site and pay a deposit. If the price offered by the applicant is at least 80% of the Government's assessed open market value of the site concerned, the site will be put up for sale by auction or open tender.

    The Lands Department introduced in 2005 a number of measures to enhance the efficiency and transparency of the Application List System.  

    These measures included the shortening of the processing time by 30% and the simplification of the deposit requirement. Another enhancement measure introduced is to adjust the triggering requirement under the system whereby a bid reaching at least 80% of the assessed Open Market Value will trigger an auction or a tender. However, the site will not be sold unless the highest bid meets or exceeds an OMV reserve price assessed on the day of auction or tender closing.

    The 2006-07 Application List together with the relevant Explanatory Note, Application Form and Agreement as well as the Practice Note can also be viewed and downloaded at the Lands Department's website

Ends/Friday, March 17, 2006
Issued at HKT 17:00