999-year leases in Hong Kong
999-year leases in Hong Kong are a rare form of lease in Hong Kong.
History
[edit]
They were almost exclusively granted from 1849 to May 1898 on Hong Kong Island and in Kowloon (South of Boundary Street).[1] Some exceptions include Hang Cheong Tai Building (1900), Cheung Ling Mansion (1900), Ka Yue Building (1901), Princeton Tower (1901), Lun Fung Court (1903) and the Consulate General of the United States, Hong Kong and Macau, which was granted a 999-year lease in April 1999.[2] The US Consulate had an option to buy the plot as a freehold in its 1950 lease, but this was eliminated in 1999 in exchange for the 999-year lease.[2]
The only current freehold in all of Hong Kong belongs to St John's Cathedral, which was granted freehold in 1847 with perpetual ownership under the condition that the land be used as a church.[1] The University of Hong Kong had a freehold, which was surrendered in the 1920s in exchange for a 999-year lease.[3]
Some leases were marginally shorter, ranging from 978 to 997 years. In a December 2016 research publication, the Legislative Council said that "At present, only a few pieces of land on the Hong Kong Island and in Kowloon are with the lease term of 999 years."[1]
Lots
[edit]Land in Hong Kong is separated into "lots", pieces of land which are leased out by the government. Lots can be further broken down into portions of Sections, Sub Sections, Remaining Portions, and Extensions.
A single building can be erected on one lot or a combination of different lots and portions. As each lot is leased out by the government with its own terms, a single building may therefore sit on land with multiple lease terms. For example, Floral Tower at 22 Robinson Road is built on 3 lots, each with different terms- IL 347: 999 years from 27 November 1849, IL 392: 999 years from 17 March 1855, and IL 717: 999 years from 25 June 1861.
The government provides several tools which can be used to inspect lots:
- Geoinfo Map Archived 10 March 2021 at the Wayback Machine - a map which displays lots and associated buildings/addresses
- Street Index - a text version of Geoinfo Map
- IRIS Archived 20 July 2020 at the Wayback Machine - a database where details of each lot (such as terms of length) can be obtained
By using these tools, a lot can be inspected to see if it has a lease of 999 years, and all buildings on those associated lots can be listed- therefore, a list of every building which has a 999 year lease can be generated.
Valuation
[edit]In the 2008 research paper, "Intergenerational Discounting: A Case from Hong Kong" from the University of Hong Kong, researchers found that properties on lots with 999-year leases commanded a premium of 5.74% over similar properties on lots with 99-year leases in the time period from 1992 to 2006.[4]
Locations
[edit]| Location | Distribution |
|---|---|
| Tai Kok Tsui |
|
| Tsim Sha Tsui |
|
| Hung Hom | |
| Source: Geoinfo Map Archived 10 March 2021 at the Wayback Machine (for finding primary lots)
Property.hk CyberNet Property Archived 21 April 2024 at the Wayback Machine (for finding land lease expiry year) | |
See also
[edit]References
[edit]- 1 2 3 "Legislative Council of the Hong Kong Special Administrative Region - Land tenure system in Hong Kong". www.legco.gov.hk. Archived from the original on 11 November 2020. Retrieved 28 June 2020.
- 1 2 "A rare 999-year lease tops America's property portfolio in Hong Kong". South China Morning Post. 26 June 2020. Archived from the original on 10 April 2021. Retrieved 28 June 2020.
- ↑ "Rights of Way and Long User: A Postscript by Malcolm Merry" (PDF). Archived (PDF) from the original on 17 July 2020. Retrieved 17 July 2020.
- ↑ Wong, Siu Kei; Chau, K. W.; Yiu, Edward Chung Yim; Yu, M. K. W. (4 May 2008). "Intergenerational Discounting: A Case from Hong Kong". Habitat International. 32 (3). Rochester, NY: 283–292. doi:10.1016/j.habitatint.2007.08.015. SSRN 1370756. Archived from the original on 4 July 2021. Retrieved 7 August 2020.