Hong Kong Case Law: Decisions & Judgments

Topic

Comparative method of valuation

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…
9 Jan 1990

KWONG FAT LOONG SHIPYARD v. COMMISSIONER OF RATING AND VALUATION

Citation

KWONG FAT LOONG SHIPYARD v. COMMISSIONER OF RATING AND VALUATION
Court

Lands Tribunal
Case number

LDRA5/1988

The Tribunal held that the comparative method is preferred and applicable to the land above sea level, seabed and buildings (three of four elements) because adequate comparables existed; the actual negotiated rent was based on Government standard rates and was below open market rent and thus not adopted for the whole tenement; the contractor's method was appropriate for the slipway where no comparables existed; after considering obsolescence and market yields the proper decapitalisation rate for the slipway was 10.5%, producing a composite rateable value of $136,900 effective 1 April 1988.

Hong Kong Case Law

HOI MIU INVESTMENT CO LTD v. THE DIRECTOR OF LANDS

KWONG FAT LOONG SHIPYARD v. COMMISSIONER OF RATING AND VALUATION