Why Hong Kong’s wealthy private clubs will have to pay a lot more for land leases

After years of paying little to no land costs and cheap rent, elite clubs will have to cough up one-third of the market value of each site to renew their leases – but only from 2027

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The exclusive Hong Kong Golf Club in Fanling. Photo: K.Y. Cheng

Published: 7:34am, 29 Mar 2018Updated: 10:05am, 5 Apr 2018

Hong Kong’s elite and exclusive sports clubs, which operate 27 facilities on public land, will have to pay one-third of the market value of each site if their leases are renewed, after years of cushy rental deals and little to no land costs.

In the face of a dire housing shortage and criticisms that such clubs are not widely accessible to the public, the government in 2014 launched a review of its policy of leasing out public land for private recreational purposes to sports clubs and non-governmental organisations.

Under a new policy announced last week, clubs will have to pay this sum every 15 years upon lease renewal, and will also have to pledge to increase their opening hours for the public.

But the rule will only kick in from 2027 when most existing leases are due to expire.

What are private recreational leases?

There was an acute shortage of public sports and recreational facilities in Hong Kong in years gone by.

The government granted land to sports associations, social and welfare organisations and other uniformed groups to develop such facilities.

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