ABSTRACT
In Hong Kong, since direct land value capture (LVC) can be exercised through premium assessment during lease modifications, levies of developer obligations have received relatively less attention. Since the introduction of the planning application system in the 1970s, negotiable developer obligations (NDO) can be levied through imposing conditions on the planning permits. This study walkthroughs the key direct and indirect LVC devises regarding the major types of land contracts in different regions of Hong Kong. To unleash the development potential of the privately owned land in the suburb regions for housing development, this study explores the introduction of land readjustment mechanisms, of which the private landowners must contribute substantial portions of their land parcels, as non-negotiable developer obligations, for public housing and infrastructure development.
