For the New Development Areas project, the Government has decided to adopt an enhanced Conventional New Town Approach and take the lead in the development. Private land will be resumed for development according to planned uses, while flexibility will be provided for private landowners to apply for lease modification (including in-situ land exchange) to develop their land planned for private development in the two New Development Areas (NDAs). To ensure compliance with the planning intention and timely housing land supply and production, lease modification (including in-situ land exchange) application will only be processed subject to meeting a set of criteria by specified deadlines having regard to the phased development of the two NDAs.

This approach has been adopted in response to the views collected during the public engagement activities conducted in 2012, including those expressed by some pan-democratic Legislative Council (LegCo) Members who strongly opposed the compulsory resumption of private land for future land sale by the Government, alleging that this would deprive the rights of landowner(s) to develop the land on their own. Private land to be involved in the implementation of Kwu Tung North and Fanling North NDAs project is estimated to be about 182 hectares. If the criteria and deadlines mentioned above could not be met, private land within the area planned for private development will also be resumed by the Government. By allowing such kind of lease modification (including in-situ land exchange) application, this could expedite housing supply and would not affect the overall planning or the timely and orderly provision of infrastructure and community facilities.