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Booming property market promises cash windfall

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THE Government is in line for another cash windfall with land revenue likely to greatly exceed its original estimate of $14.1 billion.

The booming property market in 1991 resulted in a record windfall of more than $20 billion in land income during the last financial year and the Government expects the trend to continue.

''With the market continuing to be good, I think even for the year 1992-93, the land revenue will certainly exceed estimates,'' the Secretary for Planning, Environment and Lands, Mr Tony Eason, said yesterday.

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''On the land side, we are almost bound to be a bit conservative. I don't think it's prudent to predict on the basis of a booming market.'' Government accounts show that for the first six months of the financial year, more than $6.2 billion was collected, with $3.6 billion coming from sales at public auction and tenders.

During that six-month period, about $2.1 billion was collected from modification of existing leases and another $354.7 million from private treaty grants.

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A record land auction price was realised on Wednesday with the World International (Holdings), Wharf (Holdings) and Hongkong Realty and Trust paying $3.53 billion for a single plot of land.

Yield from the 280,510 square foot Diamond Hill site is expected to boost the healthy public funds.

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