FHKI highly welcomes government’s legislation

to establish a new Land Lease Renewal Mechanism

 

      Federation of Hong Kong Industries (FHKI) highly welcomes the Extension of Government Leases Bill (the “Bill”) published and gazetted by HKSAR Government today (8 December) regarding a standing mechanism for extension of leases in a streamlined and orderly manner by operation of law.

 

       FHKI strongly believes that the new mechanism will greatly strengthen the certainty in land policy, enhance the confidence of Hong Kong's business community, all sectors of our society and, also, investors around the world. The Bill not only helps to create a more stable business environment telling great stories about Hong Kong but making our city the dazzling light of the “Pearl of the Orient” shining even brighter at the centre the world stage.

 

      The Bill maintains and operates under the 1997 Land Policy whereby general purpose leases as covered in the Bill (which refer to residential, commercial or industrial leases not being special purpose leases) will generally be allowed extension by our Government for a term of 50 years without payment of an additional premium.

 

      Since a number of such leases will expire starting from 2025 onwards, our Government proposes to extend these leases in batches by virtue of the Government's regular publication of notices in the Gazette, obviating the need for all relevant owners and the Government to undergo cumbersome execution procedures of new leases under the circumstances.  In particular, the Bill provides for property owners to be notified of a successful 50-year extension six years before their leases are set to expire instead of three years as originally proposed.

 

      FHKI strongly believes that the new mechanism not only provides great certainty to our property owners but, also, instil immense confidence to our property market, substantially reinforcing Hong Kong’s long-term stability and prosperity.  Hong Kong is fortunate to enjoy the distinctive and strategic advantages of “the strong support from the Motherland and, also, the close connectedness with the global marketplace”; it stands strong in attracting Mainland and overseas investors, propelling Hong Kong’s continuous success in the many years to come!

 

 

Media Enquiries:

Tel: 2732 3156 / 2732 3154
E-mail: media@fhki.org.hk