EditorialAuto renewal of land leases beyond 2047 builds Hong Kong confidence
- New law eases concerns and offers city greater clarity on what to expect when ‘one country, two systems’ concept marks 50 years
One of the issues that troubled Hong Kong before plans were put in place for the city’s return to China was the long-term legal status of land leases. There was much uncertainty in the 1970s and early 1980s about whether such leases would have legal effect after June 30, 1997, as the city’s future beyond that date was unclear.
Reassurance was provided by the Sino-British Joint Declaration in 1984, which laid out a blueprint for Hong Kong as a part of China and promised the leases would continue to be recognised after the handover. It was followed, in 1997, by a general land policy.
Many leases have been renewed until 2047, when the 50-year minimum period for the “one country, two systems” arrangement expires. But questions have long been raised about the renewal of such leases beyond 2047.
Doubts have remained despite recent indications from Beijing that the one country, two systems concept is very likely to continue beyond that date.
A new law, which took effect on Friday, should ease concerns. It provides for the automatic renewal by the government of most leases for commercial, residential and industrial use for a further half-century.
The step is intended to provide stability and confidence as Hong Kong seeks to attract investors while playing a key role in the development of the Greater Bay Area.