Hong Kong Case Law: Decisions & Judgments

Topic

Open market value

Legal area

Court

26 Aug 2024

THE DIRECTOR OF LANDS v. ZITTA INVESTMENTS LTD (formerly known as KIND BOSS INVESTMENTS LTD)

Citation

[2024] HKLdT 73
Court

Lands Tribunal
Case number

LDLR6/2023

On the balance of probabilities as at 16 September 2012 the Lot and shop lacked realistic redevelopment potential given its small site area and absence of evidence of developer interest; therefore compensation must be assessed on existing use (open market) value, the Tribunal accepted the expert direct comparison valuation and determined the market value at HK$14,570,000 and ordered payment.
11 Jan 2012

LAI SHUN HANG v. THE DIRECTOR OF LANDS

Citation

LAI SHUN HANG v. THE DIRECTOR OF LANDS
Court

Lands Tribunal
Case number

LDLR3/2010

Tribunal retained AC4/RC2 as an appropriate comparable, rejected the applicant's ad hoc weighting scheme and adopted equal weighting of the six comparables after making specific adjustments (time, location -15% to -20%, clear frontage, headroom, visibility and quantum as set out by the Tribunal), rejected depth and structural column adjustments, and applied the conventional term‑and‑reversion method for the ground floor tenancy, producing a total compensation award of HKD 10,268,500.
5 Aug 2011

DATA KEY LTD v. DIRECTOR OF LANDS

Citation

DATA KEY LTD v. DIRECTOR OF LANDS
Court

Lands Tribunal
Case number

LDLR6/2009

The Tribunal held valuation may be carried out on the basis of the actual physical sub-division into three shops where the property is legally sub-divisible even if no formal notional subdivision of the undivided share existed at the date of resumption; applying Direct Comparison Method with agreed comparables and specified adjustments the open market value on the 3-shops basis was determined and compensation awarded in the sum of HK$7,303,000.
11 Jul 2011

DATA KEY LTD v. DIRECTOR OF LANDS

Citation

DATA KEY LTD v. DIRECTOR OF LANDS
Court

Lands Tribunal
Case number

LDLR6/2009

Where a property is physically sub-divided and is legally sub-divisible, the Lands Tribunal will value the property on that subdivided basis for resumption compensation; notional legal subdivision need not have been executed at the date of resumption. Using the Direct Comparison Method with agreed comparables and determined adjustments, the Tribunal fixed the open market value at HKD 6,715,000.
20 May 2011

KAISILK DEVELOPMENT LTD v. DIRECTOR OF LANDS

Citation

KAISILK DEVELOPMENT LTD v. DIRECTOR OF LANDS
Court

Lands Tribunal
Case number

LDLR1/2005

Applying the residual method with the parties' agreed assumptions and the Tribunal's determinations on comparables adjustments, ground floor unit rate $264,349 psm, first floor unit rate at one-fifth of ground floor ($52,870 psm), discount rate 10.75%, and a 6-month allowance to obtain vacant possession, the open market value of the Subject Property at the date of resumption is determined to be HK$74,451,000.
22 Dec 2010

LEE YUN v. DIRECTOR OF LANDS

Citation

LEE YUN v. DIRECTOR OF LANDS
Court

Lands Tribunal
Case number

LDLR12/2006

Tribunal accepted Direct Comparison method using comparables C-1, C-2, C-3, C-4 and C-7, adopted Mr Ng's measurement of clear frontage (excluding columns) and his linear headroom adjustment, made quantified adjustments for location, time, size, headroom, frontage and layout as determined in the judgment, fixed an adjusted unit rate of HK$295,345 per sq.m, and determined the compensation payable subject to existing tenancy and agreed discounting to be HK$4,416,000.
4 Sept 2009

CHUNG PUI HING AND ANOTHER v. THE DIRECTOR OF LANDS

Citation

CHUNG PUI HING AND ANOTHER v. THE DIRECTOR OF LANDS
Court

Lands Tribunal
Case number

LDLR2/2008

The Tribunal rejected remote Sai Wan Ho small-shop comparables and larger multi‑times‑size comparables, accepted four proximate comparables (AC1/RC1, AC3/RC2, AC5/RC4, AC7/RC6), applied specific percentage adjustments for headroom, time (using RVD indices where appropriate), location, visibility (where relevant), frontage & depth and quantum (adopting linear quantum adjustments), averaged the four adjusted unit rates to derive a unit rate of HKD 274,830 per sq.m. and multiplied by the effective saleable area (10.31 sq.m.) to award OMV and compensation of HKD 2,834,000.
29 Jun 2009

DOUBLE ROCK LTD v. THE DIRECTOR OF LANDS

Citation

DOUBLE ROCK LTD v. THE DIRECTOR OF LANDS
Court

Lands Tribunal
Case number

LDLR11/2007

Tribunal selected five comparables (RC1, AC5/RC4, AC4, RC6, RC7), accepted the applicant expert's measured frontages and saleable areas (including authorized cockloft areas), adopted the parties' common use of the RVD index for time adjustments and common conversion factors for ancillary areas, rejected a general layout/shape uplift and applied specific location, size, frontage and headroom adjustments producing an average adjusted unit rate of $67,649 per sqm; applied to agreed area 52.6 sqm yields OMV $3,560,000 awarded as compensation.
11 Dec 2008

SUEN PING FAT also known as SUN PING FAT v. THE DIRECTOR OF LANDS

Citation

SUEN PING FAT also known as SUN PING FAT v. THE DIRECTOR OF LANDS
Court

Lands Tribunal
Case number

LDLR8/2007

Tribunal held valuation date was 5 November 2005, adopted valuation on existing tenancy basis using direct comparison principles with selected comparables AC1/RC3, AC3/RC5, AC5/RC10 and RC9 (discarding two superior Wanchai Road comparables), applied specific percentage adjustments (time, location, obstruction, size, frontage, layout, headroom and building age), calculated vacant possession OMV at $8,410,000 and OMV subject to tenancies at $8,400,000, and ordered the Respondent to pay the Applicant compensation of $8,400,000; matters of fees, interest and costs reserved.
26 Jun 2007

TUNG MEI CHI VERA AND ANOTHER v. THE DIRECTOR OF LANDS

Citation

TUNG MEI CHI VERA AND ANOTHER v. THE DIRECTOR OF LANDS
Court

Lands Tribunal
Case number

LDLR1/2006

Tribunal rejected the Reduced Zoning Method in favour of the average unit rate/direct comparison approach, excluded non‑comparable transactions (RC2, RC9, RC10, RC14, RC16 and later RC1 and RC12 as outliers), adopted specific percentage adjustments for location/time/size/frontage/headroom/building age as summarized in the judgment, calculated an adjusted average unit rate of HKD 322,583 per sq.m applied to the agreed effective saleable area of 45.51 sq.m to derive a vacant possession value of HKD 14,680,752 and then applied term and reversion analysis for the two shop tenancies to award total…