Why Hong Kong should rethink premiums for private recreation clubs
Private recreation leases have a long and contentious history in Hong Kong. Complaints about the inequity of granting land leases to private clubs at a nominal premium for the exclusive enjoyment of a small number of members have been raised many times. This issue is increasingly pressing. Twenty-seven sites are involved and almost all the leases for these sites are set for renewal next year. In…
Hong Kong's private recreation clubs have faced criticism for their exclusive access to land leases at minimal premiums. The government reviewed this policy in 2018, considering the benefits these clubs provide to sports development, international events, and economic growth. However, concerns remain about the restrictive conditions of these leases, which only allow non-profit organizations to hold them and prohibit selling the land.
Clubs must also allocate a minimum of 30% of their sports facilities for public use and partner with national sports associations for organized programs. While a concessionary premium of one-third of the site's market value was proposed, many argue that these private recreation leases lack commercial value, making the calculation of a premium impractical.
The Extension of Government Leases Ordinance, effective in July 2024, will automatically extend all existing general-purpose leases for 50 years without a premium, covering about 2,400 lots involving thousands of owners. This change brings into question the need for charging premiums for private recreation lease renewals, as only 27 sites currently pay a premium while others will be extended without any additional cost.
The administration should reconsider treating private recreation lease lots similarly to general-purpose lots, offering them a 50-year extension without a premium to ensure equity.
Written by urgent.news from South China Morning Post - Hong Kong's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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