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Ex-gratia Compensation Rates for Resumed Land

The ex-gratia compensation system for land in the New Territories consists of four compensation zones (i.e. Zones A, B, C and D). The rates for each zone are expressed in varying percentages of the basic rates, and under each zone, the agricultural land and building land have different basic rates. The definition and ex-gratia compensation rates of Zones A to D are as follows:

Zone Definition Ex-gratia compensation rate (per square foot)
Agricultural Land Building Land
A New Town Development AreasNote 1 (namely areas within the New Town boundaries as shown on gazetted outline zoning plans for new towns), and those areas that are affected by essential projects with territory-wide significance. 120% of basic rate ValuationNote 2 + 120% of basic rate
B Areas which may be brought under urban development in the near future, either by extensions to the adjoining layout areasNote 3 due to their proximity to such areas or by reason of their known potential for urban development. 75% of basic rate ValuationNote 2 + 75% of basic rate
C Areas in which no urban development is planned and which are unlikely to be affected by later extension to layout areas, but where resumptions are required sometimes for purposes directly connected with urban layout development and sometimes for local improvement schemes. 50% of basic rate ValuationNote 2 + 50% of basic rate
D Areas not included in other zones. 30% of basic rate ValuationNote 2 + 30% of basic rate

Note 1: Also refers to New Development Area.
Note 2: This component is a compensation amount assessed on open market value of the affected building land (including any legal structures erected on the building land).
Note 3: Layout areas broadly refer to new town and new development areas.

According to the established 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 different compensation zones above, and having regard to the location of the land to be resumed and the nature of the project concerned, including whether the land to be resumed belongs to any new development areas, whether the works are essential from a territory-wide perspective, whether urban development is involved, and whether the land is to be resumed for local improvement plans etc. 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 above definitions of the different compensation zones, the location of land to be resumed, and the nature of the project, 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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