Real Estate partner Alan Yip (Hong Kong) is quoted by Sing Tao Daily in an article discussing "one house" restriction in government leases in Hong Kong and the issues relating to the calculation of land premium payable to the government to remove such a restriction. Based on certain court cases, Alan noted that the condition of the target site subject to redevelopment may not be the only factor in considering the land premium amount, as the condition of the neighbouring sites subject to the same restrictions under their respective government leases may also be considered and submitted to the government for consideration. Therefore, real estate developers may take into account the conditions of neighbouring projects as a ground to reduce land premium when applying to the government to remove the “one house” restriction under the government leases. However, Alan stressed that this may not be suitable in all circumstances and could involve complicated legal regulations; hence, real estate developers should seek legal advice from lawyers.
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