Hong Kong Case Law: Decisions & Judgments

Topic

Comparables adjustment

Legal area

Court

5 Nov 2020

TSE CHAN FAI AND ANOTHER v. DIRECTOR OF LANDS

Citation

[2020] HKLdT 50
Court

Lands Tribunal
Case number

LDLR10/2018

The Tribunal adopted the direct comparison method, excluded an outlier comparable (C5), accepted the tribunal adjustments framework (adopting 1% per 4 sqm size adjustment and 2% per metre frontage adjustment as appropriate), derived an average adjusted unit price of $438,383 per sq m producing a 100% vacant possession value of $30,125,680; the Tribunal refused to rely on rent passing attributable to the scheme (Pointe Gourde) for enhancing value, accepted a 10% discount for valuation of a partial (2/3) interest for lack of marketability, and applied those principles to determine compensation…
7 Jun 2018

CHENG KWOK KUEN in his capacity as the Administrator of the estate of CHENG LAM YING LAN, deceased v. DIRECTOR OF LANDS

Citation

[2018] HKLdT 41
Court

Lands Tribunal
Case number

LDLR6/2015

The tribunal held the Lot was not a Class A site because Yu Lok Lane as a whole did not satisfy the definition of a specified street of at least 4.5m in overall width; consequently the Lot was an unclassified site and, on balance of probabilities and expert evidence, the Building Authority would have permitted a 3-storey plus cockloft non-domestic redevelopment under reg 19(3); adopting that hypothetical development and residual valuation parameters the market value as at the date of resumption (9 April 2009) was $2,530,000, which the respondent must pay as compensation.
8 Nov 2006

SUNBEAM INVESTMENTS LTD v. PEEPELS, STEPHEN

Citation

SUNBEAM INVESTMENTS LTD v. PEEPELS, STEPHEN
Court

Lands Tribunal
Case number

LDPD3137/2005

The Tribunal preferred the respondent expert's interpolation method for time adjustments, accepted a limited upward orientation adjustment and a 5% downward adjustment for condition, accepted standard floor-level adjustments (0.75% per floor), rejected an allowance for neighbouring unit renovation noise, averaged the two best adjusted comparables to derive a net monthly rent of $69,789 and added agreed outgoings of $11,500 to determine the prevailing inclusive market rent at $81,300 per month from 1 September 2005.
15 Dec 2003

PAINTER, ALLAN DAVID v. FOOK SHING ENTERPRISES LTD

Citation

PAINTER, ALLAN DAVID v. FOOK SHING ENTERPRISES LTD
Court

Lands Tribunal
Case number

LDNT102/2003

The Tribunal fixed rent by averaging adjusted unit rents from objectively comparable properties after rejecting unsupported inferences (internal condition/decoration cost) and applying limited, evidence-based adjustments (including a 7‑day rent‑free adjustment), resulting in a fair market rent of HK$21,000 per month inclusive of rates and management fee and the grant of a two‑year tenancy commencing 1 July 2003.
7 Jan 2002

LACHLAN DAVID RUTHERFORD v. KING FIELD INTERNATIONAL LTD.

Citation

LACHLAN DAVID RUTHERFORD v. KING FIELD INTERNATIONAL LTD.
Court

Lands Tribunal
Case number

LDNT274/2001

The Tribunal adjusted the provided comparables for view, size, domestic appliances, garden and condition, rejected time index adjustment and inclusion of unauthorized areas, excluded comparables whose adjusted unit rents lay more than 20% outside the mean (comparables 3 and 6), used the average adjusted unit rent of $219.52/sq.m for the remaining comparables and assessed the prevailing market rent at $219.52 x 169 sq.m = $37,098.88, rounded to $37,100 pcm exclusive of rates and management fees.
17 May 2001

Foreign Dimension Ltd. v. Nam Mui (Kin Kee) Co. Ltd.

Citation

Foreign Dimension Ltd. v. Nam Mui (Kin Kee) Co. Ltd.
Court

Lands Tribunal
Case number

LDNT63/2001

The Tribunal accepted the 3/F letting of 14 February 2001 as the best comparable, allowed a HK$600pcm adjustment for domestic appliances and a HK$1,000pcm upward allowance for the subject being one floor higher, rejected allowances for timing (Chinese New Year), interior defects and tenancy clauses; concluded PMR HK$33,000pcm exclusive and ordered a new two-year tenancy from 11 February 2001 with deposit HK$66,000.
3 Apr 2001

Yuen Long Fish Merchant\'s Association Ltd.. v. Secretary for Transport

Citation

Yuen Long Fish Merchant\'s Association Ltd.. v. Secretary for Transport
Court

Lands Tribunal
Case number

LDMR44/2000

Tribunal determined open market value at date of reversion (16 January 1999) by adopting investment method: adopted adjusted unit rent $480 per sq.m.p.a. for site area 2,804 sq.m. giving annual rent $1,345,920, capitalised at an adopted yield of 9.17% to produce $14,680,000, less demolition/preparation cost $500,000, resulting in compensation of $14,180,000; interest and costs ordered as per statute and tribunal practice.
5 Mar 2001

A. N. Forsyth v. Banbury Investments Ltd.

Citation

A. N. Forsyth v. Banbury Investments Ltd.
Court

Lands Tribunal
Case number

LDNT306/2000

Because the respondent had expressly consented at the original hearing to the grant of a one‑year tenancy and thereby was bound by that consent, the respondent's application to file opposition and to dismiss the applicant's application was dismissed; the Tribunal admitted new rental evidence under s11A(4) and, after making adjustments to the comparables for car parking, roof (10%), time, rates and management fees, fixed the prevailing market rent for Flat E3 at $20,600 per month exclusive of rates and management fee.