The land administration system in Hong Kong

Abstract

Most countries have an aim of public policy that their citizens should be well housed at a reasonable price (Needham and Roelof, 1998). Hong Kong is a small, densely populated city that makes access to housing particularly sensitive to the availability of land. Land administration becomes very crucial, in that it governs land supply and land use, thereby affecting housing production. Despite its importance, the system has been subjected to severe criticisms. For example, Wu (1983) once argued that 'there was a high land price policy in Hong Kong.' Developers have complained, 'the land approval procedures were slow, bureaucratic and inherently anti-development' (SCMP, 6th June 1997). Nicholas Brooke also claimed that 'there was too much uncertainty in land sales and loan programmes and in the diversion of responsibility for housing production between the private and public sectors to see clearly the likely long-term direction of the market'(SCMP, 18th November 1998). The government itself is dissatisfied with the fluctuating property market in the past with property values either rising far too rapidly or falling drastically, which leads to many undesirable social problems. All this concerns directly or indirectly the land administration system in Hong Kong, adversely affecting the smooth operation of the housing and land markets. The Hong Kong land administration plays an indispensable role in the housing and land markets, and also the economy as a whole. However, little research has been done on the land administration system in Hong Kong. This dissertation addresses all of the above problems, first, by examining the land administration system in Hong Kong having regard to its lease hold and associated land policy. Second, it deals with the market inefficiency questions: to what extent does the land and housing markets work within the land administration? How does the land value capture mechanisms affect the market? With market evidence, we will examine the relationships between the land administration functions and the land and housing markets, and analyse the land-value capture mechanisms by comparing with that of Singapore. Finally, it gives suggestions on the existing practices and procedures associated with the land administration system of Hong Kong.