Lands Administration Office
Lands Department

Practice Note
Issue No. 3/2003

Premium Assessment for
Exemption of Non-structural Prefabricated
External Walls (NSPE Wall)
from GFA and SC calculations
for residential developments
under Joint Practice Note No.2

	This Practice Note is issued in relation to paragraph 2(i) of the Lands Administration Office Practice Note No. 6/2002 regarding provision of NSPE Wall for residential developments in which under the existing lease conditions there is no special condition for 'Determination of GFA in buildings with curtain wall system forming external face of building'.

2.	A lease modification to include the special condition similar to the one in paragraph 1 above is required if the NSPE Wall is to be exempted from gross floor area/site coverage calculation under such lease conditions.  In order to speed up the processing time for this type of lease modification and to avoid abortive time in negotiation of land premium by both the developer and the Government, the premium unit rates as shown in Appendix I will be charged subject to the following conditions: -

(i)	The premium unit rates in Appendix I shall be applicable to lease modification for residential use only.

(ii)	Application for lease modification must be accompanied by the building plans as approved by the Building Authority.  The application letter should state clearly the average flat size, majority of the thickness of NSPE Wall and the gross floor area of the NSPE Wall exempted.  Application will not be entertained prior to the approval of the building plans by the Building Authority.  In case there are any material changes to the design of the development, which may lead to change in the calculated premium, a new lease modification subject to payment of additional premium and administrative fee may be required.

(iii)	The premium unit rates for the NSPE Wall, depending on the flat size, thickness of the NSPE Wall and the location of the development, will be charged on a per square metre basis.  A sample calculation is at Appendix II.

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(iv)	The standard rates are non-negotiable and the rate will be reviewed annually.

(v)	An administrative fee of $23,000 (subject to annual review) will be charged for each application for lease modification.

(vi)	The district boundaries follow the boundaries of the District Lands Offices. For lots straddling between two districts, the higher rate is applicable.

(vii)	The criteria in determining the premium unit rates in respect of the thickness of the NSPE Wall, location of the development and flat size are shown at Appendix I.

(viii)	The premium unit rates for NSPE Wall in Appendix I are not applicable to curtain wall development and the commercial portion of a composite development.

	(Patrick L C LAU)
	Director of Lands
	23 June 2003