MASS TRANSIT RAILWAY CORPORATION AND OTHERS v. HSU AND SONS LTD

MASS TRANSIT RAILWAY CORPORATION AND OTHERS v. HSU AND SONS LTD

The Tribunal must determine and fix the fair market rent as at 1 July 1982 by reference to market evidence and appropriate valuation methodology; it cannot base the new rent on prior rent or make subjective personal adjustments outside market evidence. Applying comparables, allowances and observed market weakening, the Tribunal fixed monthly rents exclusive of rates and management charges: Unit No.1 $38,500, Unit No.2 $38,500, Unit No.5 $35,500.

Citation
MASS TRANSIT RAILWAY CORPORATION AND OTHERS v. HSU AND SONS LTD
Parties
1st Applicant (tenant): Mass Transit Railway Corporation; 2nd Applicant (tenant): Chase Manhattan Bank N. A.; 3rd Applicant (tenant): Lloyds Bank International Limited; Respondent (landlord): Hsu and Sons Limited
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
27 August 1982
Case Number
LDNT2/1982
Procedural Posture
Landlord and Tenant Part IV Application for Grant of New Tenancies / Determination of Fair Market Rent Under S.119 K (hearing and Inspection; Judgment)
Outcome
Tribunal fixed the fair market rents and granted new tenancies for two years commencing 1 July 1982 on agreed terms (except rent)
Legal Topics
Grant of New Tenancy, Fair Market Rent, Valuation Methodology, Section 119 K, Allowances (garden, Appliances, Air Conditioning, Rooftop)
Source Language
EN
Landlord and Tenant Property Valuation Grant of New Tenancy Fair Market Rent Valuation Methodology Section 119 K Allowances (garden, Appliances, Air Conditioning, Rooftop)

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Parties

Mass Transit Railway Corporation

1st Applicant (tenant)

Chase Manhattan Bank N. A.

2nd Applicant (tenant)

Lloyds Bank International Limited

3rd Applicant (tenant)

Hsu and Sons Limited

Respondent (landlord)

Procedural Posture

Landlord and Tenant Part IV Application for Grant of New Tenancies / Determination of Fair Market Rent Under S.119 K (hearing and Inspection; Judgment)

Legal Issues

  1. 1 Whether the Tribunal may fix a rent other than the fair market rent under s.119K
  2. 2 Proper meaning and application of 'fair market rent' under s.115(1) and s.119K
  3. 3 Appropriate valuation methodology for top‑end domestic premises (unit rate v relativity/comparables)

Ratio Decidendi

The Tribunal must determine and fix the fair market rent as at 1 July 1982 by reference to market evidence and appropriate valuation methodology; it cannot base the new rent on prior rent or make subjective personal adjustments outside market evidence. Applying comparables, allowances and observed market weakening, the Tribunal fixed monthly rents exclusive of rates and management charges: Unit No.1 $38,500, Unit No.2 $38,500, Unit No.5 $35,500.

Court Disposition

Tribunal fixed the fair market rents and granted new tenancies for two years commencing 1 July 1982 on agreed terms (except rent)

Orders

  • Grant new tenancy for Unit No.1 for 2 years from 1 July 1982 at a rent of HKD 38,500 per month (exclusive of rates and management charges)
  • Grant new tenancy for Unit No.2 for 2 years from 1 July 1982 at a rent of HKD 38,500 per month (exclusive of rates and management charges)