The Lands Department today published a third Extension Notice under the Extension of Government Leases Ordinance to extend the land leases of 28 lots for a term of 50 years.

The notice, covering eight located in Kowloon and 20 on Hong Kong Island, concern general purpose leases which are due to expire in 2032 and do not contain a right of renewal.

The department explained that while land leases extended under the ordinance do not require payment of additional premium, they are subject to an annual payment of government rent equivalent to 3% of the rateable value of the relevant land.

Encumbrances, interests and rights under the original lease will be carried forward to the extended lease term. Owners do not have to perform any procedures, nor are they required to execute lease extension documents with the Government or rearrange mortgages.

The Development Bureau remarked that the arrangement brings tremendous convenience to the public and businesses, effectively enhances the confidence of property owners and investors in the real estate market, and has received widespread support from various sectors of the community.

It added that the mechanism manifests solid safeguards for the long-term prosperity and stability of Hong Kong under the implementation of the “one country, two systems' principle”.