Hong Kong authorities plan to speed up private projects by allowing developers to pay the land premium for what they will build instead of the maximum allowed when leases are modified, according to the development minister.
Secretary for Development Bernadette Linn Hon-ho raised the concept of “pay for what you build” on Wednesday, noting that the current arrangement involved developers paying the land premium based on the maximum floor area when they adjusted their leases.
“It aims to allow some developments to proceed earlier,” she said after meeting lawmakers.
Speaking at the Legislative Council meeting, Linn added that the government would review applying the concept to the entire city.
“We hope to review and implement the measure as soon as possible if a flexible arrangement on lease modification can promote the use of private land,” she said.
The “pay for what you build” concept was first introduced in a scheme of revitalising old industrial buildings between 2010 and 2016.
Separately, the minister also mentioned reviewing the arrangement for short-term tenancy, which allows leasing government land for a fixed term of up to seven years.
