Hong Kong REITS Association (HKREITA) issued a letter to the Development Bureau (DevB) on 6 July 2023 to provide feedback on the Legislative Proposal to Streamline the Arrangement for Extension of Land Leases (“Proposal”).
HKREITA supports the efforts being made by the Government in fostering efficient and orderly arrangement for the extension of land leases in Hong Kong. This cost-effective and uncomplicated process would have a positive impact on the stability of the property market in Hong Kong. The Proposal addressed part of the market concerns regarding how the general purpose land leases would be renewed upon the expiration of their original terms. However, HKREITA considers that there are still uncertainties to the Proposal and recommends to the Government the following:
- Define “general purpose leases” and “special purpose leases” in a specific manner
- Make clarification on what constitutes “public interest considerations”
- Make clarification on the “additional clauses” that the Government intends to incorporate into the renewed lease
- Publish the gazette notice at least 9 years before expiry of each batch of non-renewal leases
HKREITA hopes the above recommendations would be helpful to the Government in formulating the necessary content of the proposed legislation.
Document can be viewed here.