I'll do my best to answer the questions, but I'm not 100% on everything.
To my knowledge, there are 2 types of land. One is where Villagers apply for a piece of government land using a 'ding'. The second one (what I'm selling) is privately owned land, where someone can use a ding to apply for permission to build a house on it. Cost of building the house is around HK$1.5M, though I guess this could vary depend on who you use.
For government land, 'Land premium' is very expensive and it is a percentage of the market value of the house/all 3 flats. Someone told me it is around 50% and this is payable for the lifetime of the house whenever the house is sold. (or land is sold? Not sure on this one)
For private land, 'Land premium' it is less expensive. According to this (beware it is quite old):
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On page 71, it seems the % is around 20-23% of the market value of the houses when sold. But for houses built on private land, someone told me, if it was sold 5-6 years after it was built, then there is no 'Land premium' to be paid. (not 100% on this)
To answer some of xpatwilier points:
1. The house/flats is probably worth at least HK$6m I think.
2. What problems could there be, I have no idea, since I come from the village no one is going to do anything to me?
3. Expected.
4. I'm going to sell my land with my ding rights. (the offer I had was for both)
5. I think they do this because, any male villager can apply for a piece of 'government land'. But there is less and less of it. So they scupper someone else's application, then they can apply for it? But mine is a private land already owned by me, no one can take that from me.
6. Yes this is correct for 'government land' I have heard some people have waited 10 years+. But again, what I'm selling is private land. This means I don't have to be in HK to apply for the right to build and it is quicker, around 2-3 years.
So the conclusion of whether it is worth it or not depends on what the buyer will use it for. If for building their own house, I think it is worth it. lets say:
Land + Ding cost: HK 2m
Building costs: HK 1.5m
Land premium: HK1.5m (according to that article)
Total: HK 5m
That is already less than the value of the flats. It could be even less, depend on how I do the deal with the buyer. Because the 'Land premium' could be waived if the house is 'officially' sold after 5-6 years. (not 100% on this, but can easily be found out from 'The Lands Department')
If it is for investment. Then it depends on how quickly you need the money to return. There are lots of developments by developers around our area, so I'm expecting it to rise quickly at one point... There is a golf course about 1-2 village away that is owned by a big developer. I think it is Sun lung kai sp?, not 100% on who, but they are big as they have bought lots of other land too. Developments is expected, but when is the important question. In my opinion, if someone have the money to invest and can hold/wait long term, then I can't see how it is not a good investment.