Hong Kong Case Law: Decisions & Judgments

Topic

Valuation of tenanted property (term and reversion)

Legal area

Court

18 Apr 2007

HOI MIU INVESTMENT CO LTD v. THE DIRECTOR OF LANDS

Citation

HOI MIU INVESTMENT CO LTD v. THE DIRECTOR OF LANDS
Court

Lands Tribunal
Case number

LDLR2/2004

Tribunal accepted three comparables (AC2, AC3, RC1), adopted time adjustments based on Rating & Valuation Department indices and a set of combined adjustments (time, location, headroom, size, frontage, layout, building age) producing an average adjusted unit rate of $51,793/m2; applied that unit rate to agreed effective saleable areas to determine the open market values on vacant possession for A1-A3; for A4, which was tenanted, Tribunal applied the accepted term-plus-reversion method using an estimated market rent ($15,700/month), years purchase/PV factors for 6 months at 9% and 10% respecti…
18 Apr 2007

MAK KAN CHEONG v. THE DIRECTOR OF LANDS

Citation

MAK KAN CHEONG v. THE DIRECTOR OF LANDS
Court

Lands Tribunal
Case number

LDLR3/2004

The Tribunal held that compensation is OMV at 7 June 2003 and adopted the Rating & Valuation Department indices for time adjustments; it selected comparables AC2, AC3 and RC1, applied the Tribunal's adjustments (including time -13%,-17%,0%; location adjustments -5%,0%,-10%; headroom +5%; size 0%,10%,15%; frontage +1%,-15%,+5%; no layout or age adjustments), producing an adjusted unit rate of $51,793/m2. Applying that rate to agreed saleable areas produced OMVs on vacant possession for A1, A2 and A3 of $2,874,000; $2,874,000; and $2,867,000 respectively. For A4 (tenanted), the Tribunal applied…

Hong Kong Case Law

HOI MIU INVESTMENT CO LTD v. THE DIRECTOR OF LANDS

MAK KAN CHEONG v. THE DIRECTOR OF LANDS