To ensure Hong Kong's limited land resources can be sustained, the Government has an effective way to process lease modification applications which is well known to the property sector and developers.

Secretary for Housing, Planning & Lands Michael Suen said today the criteria adopted by the Government in processing lease modification applications takes into account factors like the economy and market conditions, and ensures overall public interests are safeguarded. He said most cases can be resolved in a rational manner.

In general, the premium for lease modification should be equal to the difference between the value of the land under the originally permitted land use and its value under the modified land use.

In assessing the land premium, the Lands Department carefully examines all available market evidence relating to actual government and private land transactions, and makes adjustments to take into account any difference in location and site characteristics.

Applicants can appeal if there is disagreement on the level of premium offered. They will be offered the option of attending the department's valuation meeting to present their case.