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Ex-gratia Compensation Rates for Resumed Land

The ex-gratia compensation system for land in the New Territories consists of two compensation zones (i.e. Tier One zone and Tier Two zone). Under each zone, the agricultural land and building land have different ex-gratia compensation rates. The definition and ex-gratia compensation rates of Tier One zone and Tier Two zone are as follows:

Zone Definition Ex-gratia compensation rate (per square foot)
Agricultural Land Building Land
Tier One Land resumed for development uses, including New Development Areas (NDAs) and other development uses covering residential/economic developments (including their ancillary purposes) or provision of public facilities which go beyond rural improvements for local villages. Tier One rate Valuation + Tier One rate
Tier Two Land resumed for non-development uses including uses related to rural improvement and conservation. 50% of Tier One rate Valuation + 50% of Tier One rate

According to the prevailing mechanism, before implementing a project involving land resumption, the Government will consider the compensation zone applicable to the project with reference to the definitions of the two compensation zones above, and having regard to intended use of the land to be resumed. If the land owners do not accept the ex-gratia compensation offer made by the Government, they may make a claim for statutory compensation to the Lands Department. If an agreement cannot be reached regarding the amount of the claim, either side may refer the case to the Lands Tribunal for final determination of the amount of statutory compensation.

The Lands Department previously compiled a Zonal Plan for ex-gratia compensation for Land in the New Territories (Zonal Plan) annually, mainly to reflect past decisions on ex-gratia compensation zones. The compensation zone for land resumption in each project is considered on a case-by-case basis in accordance with the definitions of the then effective Ex-gratia Zonal Compensation System, instead of following the zones as shown on the Zonal Plan. Considering the limitations of the Zonal Plan and the unnecessary misunderstandings and worries possibly caused to the affected land owners on some occasions, the Development Bureau and the Lands Department have, upon review, ceased the compilation and the provision of the Zonal Plan at District Lands Offices for public inspection from 2021-22 onwards. The arrangement has no impact on the operation of the ex-gratia compensation system.

Ex-gratia Compensation Rates for Resumed Land

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