Lease modification scheme being considered for Northern Metropolis

The government is actively exploring measures, including “pay for what you build,” to accelerate the development of the Northern Metropolis, says Secretary for Development Bernadette Linn Hon-ho.

The initiative will allow tailor-made lease modifications so that the land premium payable for the development will be assessed according to the company's proposed land uses of the site, Linn said in an interview with local media.

This approach aims to align land premiums with business intentions, preventing valuation discrepancies, she said.

To expedite the land acquisition process, Linn said the government may allow the value of the surrendered land to be offset against premiums in land exchanges or lease modifications, easing cash flow pressures for landowners. She hopes to implement these arrangements within the year.

She stressed that Northern Metropolis development cannot rely solely on the government and must involve market forces.

STAFF REPORTER