何永鴻 v. 偉福置業有限公司

何永鴻 v. 偉福置業有限公司

The Tribunal excluded comparables from buildings without lift service, accepted the expert's comparison method but modified several adjustment levels (time, location, floor, age/condition, building entrance, quantum/size) to values the Tribunal found appropriate, rejected the respondent's methodology of averaging unadjusted unit rates as legally and methodologically incorrect, determined the adopted average adjusted unit rate at HK$89.40 per sq.m. and, using the Premises' saleable area, fixed the PMR at HK$16,200 per month exclusive of rates and management fees; the Tribunal further held the new tenancy term should mirror the previous two-year term commencing 20 February 2004 under Cap.7.

Citation
何永鴻 v. 偉福置業有限公司
Parties
Applicant (tenant): Mr. Ho Wing Hung; Respondent (landlord): Respondent (owner of Oriental House)
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
27 February 2004
Case Number
LDNT166/2003
Procedural Posture
Landlord and Tenant — Determination of Prevailing Market Rent (lands Tribunal) / Hearing and Judgment (new Tenancy Application)
Outcome
Application allowed in part: PMR determined at HK$16,200 per month exclusive; new tenancy granted for two years from 20 February 2004; deposit and ancillary orders made; no order as to costs.
Legal Topics
Prevailing Market Rent, Comparables and Valuation Adjustments, Tenancy Terms and Basic Rent Determination, Management Fees Reasonableness
Source Language
EN
Landlord and Tenant Property Valuation Tribunal Procedure Prevailing Market Rent Comparables and Valuation Adjustments Tenancy Terms and Basic Rent Determination Management Fees Reasonableness

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Parties

Mr. Ho Wing Hung

Applicant (tenant)

Respondent (owner of Oriental House)

Respondent (landlord)

Procedural Posture

Landlord and Tenant — Determination of Prevailing Market Rent (lands Tribunal) / Hearing and Judgment (new Tenancy Application)

Legal Issues

  1. 1 What is the Prevailing Market Rent (PMR) for the subject premises?
  2. 2 Which comparables are relevant and what adjustments should be applied?
  3. 3 Whether PMR should be assessed inclusive or exclusive of rates and management fees

Ratio Decidendi

The Tribunal excluded comparables from buildings without lift service, accepted the expert's comparison method but modified several adjustment levels (time, location, floor, age/condition, building entrance, quantum/size) to values the Tribunal found appropriate, rejected the respondent's methodology of averaging unadjusted unit rates as legally and methodologically incorrect, determined the adopted average adjusted unit rate at HK$89.40 per sq.m. and, using the Premises' saleable area, fixed the PMR at HK$16,200 per month exclusive of rates and management fees; the Tribunal further held the new tenancy term should mirror the previous two-year term commencing 20 February 2004 under Cap.7.

Court Disposition

Application allowed in part: PMR determined at HK$16,200 per month exclusive; new tenancy granted for two years from 20 February 2004; deposit and ancillary orders made; no order as to costs.

Orders

  • New tenancy for two years commencing from 20 February 2004.
  • New rent at HK$16,200 per month (exclusive of rates and management fee); leave to the Respondent to pay back the Applicant over-payment of rent, if any, within one month.