Airport leads way to $34b land windfall
The Government is expected to reap windfall land revenues this financial year on the back of more than $34 billion in premiums paid by developers for homes and new MTR projects.
Premiums for land exchanges, modifications of land use and private treaty grants of land are believed to be the highest for a single fiscal year.
The other major sources of revenue are public auctions and tenders.
Director of Lands Bob Pope confirmed the amount would be significantly higher than the estimated $13.64 billion from private treaty grants projected last May. He declined to disclose the exact figures.
However, Mr Pope said land premiums from several airport-station developments would be booked this financial year.
They include the $5.8 billion agreed with the consortium led by Sun Hung Kai Properties and Henderson Land Development for the first-phase development of Hong Kong Station in Central. The others are the $6.6 billion generated from the second and third phases of the Tung Chung Station development on Lantau Island.
This year's revenues also include a $6.1 billion land premium received for the phase-two development of the Olympic Station in Tai Kok Tsui.
The Government had earlier forecast revenues from land exchanges and modifications of land use would amount to $9.23 billion for the year.
Revenue from premiums in this category is expected to be much higher, with an estimated $15.47 billion received so far this financial year.
The projects include the $5.2 billion premium paid by a consortium led by Shun Tak Holdings and Sun Hung Kai Properties for the Belcher Gardens redevelopment and the $5.83 billion from Shiu Wing Steel's residential redevelopment of its steel plant in Tseung Kwan O.
Assuming that revenues from land auctions and tenders are in line with the forecast of $13 billion made in May, total land revenues this year will be more than $46 billion against $44.88 billion in the 1995-96 financial year.
Analysts forecast a drop in income from land auctions and tenders because the Government has withdrawn several sites from this year's land disposal programme.
However, they said any drop there would be offset by potential land premiums from two residential sites in the New Territories.
According to the Lands Department, the parties involved have reached agreement on premiums for a 160,405 sq ft site in Tuen Mun and a 380,345 sq ft site in Yuen Long. Analysts said the two together could add more than $1 billion to the premium total.
Mr Pope said total revenue from land transactions in the past five years had been $157 billion, of which $80 billion came from auctions, $31 billion from sales by private treaty and $46 billion from lease modifications and exchanges.
