On 4 March, the Development Bureau and Lands Department announced the framework of a pilot scheme for charging land premiums at standard rates. The pilot scheme is applicable to industrial buildings and should give investors and developers greater visibility and cost-certainty on land premium calculations. It will also simplify the process of lease modification, increasing the volume of asset conversions into alternative, and more appropriate uses that will benefit Hong Kong’s societal needs.
Read our latest paper that looks at the new pilot scheme and discusses market implications and provides financial scenarios of how it could benefit investors and developers, when applied.
