CHRISTOPHER JAMES FRAPE v. CHEER WIN DEVELOPMENT LTD.

CHRISTOPHER JAMES FRAPE v. CHEER WIN DEVELOPMENT LTD.

Tribunal accepted the expert's methodology broadly but modified several adjustments (reduced location and accessibility adjustments, rejected age adjustment, reduced domestic appliances allowance to 3.5%, accepted 8% deduction where management fees included and allowed a 10% deduction for lack of lift on Comparable 4), excluded Comparable 2 as an outlier, calculated an average adjusted unit rate of $148.95 per sq.m and applied it to the subject saleable area of 176.2 sq.m to fix the monthly rent at $26,200 exclusive; granted the new tenancy for two years commencing 1 November 2002.

Citation
CHRISTOPHER JAMES FRAPE v. CHEER WIN DEVELOPMENT LTD.
Parties
Applicant: Christopher James Frape; Respondent: Cheer Win Development Ltd.
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
24 January 2003
Case Number
LDNT205/2002
Procedural Posture
New Tenancy Application Under Part IV of the Landlord and Tenant (consolidation) Ordinance / Judgment (hearing Concluded)
Outcome
New tenancy granted for two years commencing 1 November 2002; rent fixed at $26,200 per month exclusive of rates and management fees.
Legal Topics
New Tenancy, Market Rent Determination, Rental Valuation, Comparables Adjustments, Tenancy Deposit
Source Language
EN
Landlord and Tenant Law Property Law Valuation New Tenancy Market Rent Determination Rental Valuation Comparables Adjustments Tenancy Deposit

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Parties

Christopher James Frape

Applicant

Cheer Win Development Ltd.

Respondent

Procedural Posture

New Tenancy Application Under Part IV of the Landlord and Tenant (consolidation) Ordinance / Judgment (hearing Concluded)

Legal Issues

  1. 1 Determination of market rent for renewal of tenancy
  2. 2 Suitability and adjustment of rental comparables
  3. 3 Appropriate valuation methodology and specific adjustments (time, location, accessibility, floor level, view, appliances, management fees)

Ratio Decidendi

Tribunal accepted the expert's methodology broadly but modified several adjustments (reduced location and accessibility adjustments, rejected age adjustment, reduced domestic appliances allowance to 3.5%, accepted 8% deduction where management fees included and allowed a 10% deduction for lack of lift on Comparable 4), excluded Comparable 2 as an outlier, calculated an average adjusted unit rate of $148.95 per sq.m and applied it to the subject saleable area of 176.2 sq.m to fix the monthly rent at $26,200 exclusive; granted the new tenancy for two years commencing 1 November 2002.

Court Disposition

New tenancy granted for two years commencing 1 November 2002; rent fixed at $26,200 per month exclusive of rates and management fees.

Orders

  • Applicant granted a new tenancy for a term of two years commencing on 1 November 2002
  • New rent fixed at $26,200 per month exclusive of rates and management fees