Hong Kong Case Law: Decisions & Judgments

Topic

Fair market rent

Legal area

Court

29 Mar 1983

JOHN MARK ESSINGTON BOULTON v. LOON KING DEVELOPMENT CO LTD

Citation

JOHN MARK ESSINGTON BOULTON v. LOON KING DEVELOPMENT CO LTD
Court

Lands Tribunal
Case number

LDLA62/1982

The Tribunal granted the application for a new tenancy and fixed the fair market rent for the unrenovated premises at $29,000 per month exclusive of rates but inclusive of management charges as at 1 October 1982, based on a comparison of local Turtle Cove lettings and other localities and excluding unrequested renovations from consideration.
25 Mar 1983

PFIZER CORPORATION v. THE HONG KONG LAND CO LTD

Citation

PFIZER CORPORATION v. THE HONG KONG LAND CO LTD
Court

Lands Tribunal
Case number

LDLA8/1982

The Tribunal held that 'disregarding the effect of this Ordinance' in s.115 means the Tribunal must not take into account any inflationary or deflationary effect on rents caused by the operation of Cap.7 and must instead assess the fair market rent by reference to the real current market at the date of the hearing using proper comparables and adjustments, leading to an assessed F.M.R. of $34,000 per month exclusive and grant of a two‑year tenancy from 11 March 1983 with rent payable from 1 July 1982.
30 Oct 1982

NORDIC ASIA LTD AND OTHERS v. STRAWBERRY HILL DEVELOPMENT LTD AND ANOTHER

Citation

NORDIC ASIA LTD AND OTHERS v. STRAWBERRY HILL DEVELOPMENT LTD AND ANOTHER
Court

Lands Tribunal
Case number

LDLA53/1982

The Tribunal held that 'fair market rent' under s.115(1) is the market rent that might reasonably be expected in the market, excluding atypical or special-case comparables and disregarding the effect of the Ordinance; it rejected discounting open market rent for a generic 'package deal' factor (corporate premium) because that is a market reality unless a comparable is atypical, accepted tenant inertia as a potential market factor but found no substantial adjustment necessary on these facts, and declined to adjust rents for 2 v 3 year terms; the Tribunal fixed durations, other tenancy terms (m…
30 Oct 1982

NORDIC ASIA LTD AND OTHERS v. STRAWBERRY HILL DEVELOPMENT LTD AND ANOTHER

Citation

NORDIC ASIA LTD AND OTHERS v. STRAWBERRY HILL DEVELOPMENT LTD AND ANOTHER
Court

Lands Tribunal
Case number

LDLA36/1982

Fair market rent under Section 115(1) is the rent typical of the market that might reasonably be expected to be obtained (excluding atypical, one-sided or special transactions) and does not permit discounting based on package deals or a free-standing reasonableness criterion; tenant inertia is a recognized market factor only where comparables are renewals and here warranted no substantial deduction; Tribunal fixed durations, commencement dates and other terms under Sections 119I/119J and set specific monthly rents and related terms accordingly.
30 Oct 1982

NORDIC ASIA LTD AND OTHERS v. STRAWBERRY HILL DEVELOPMENT LTD AND ANOTHER

Citation

NORDIC ASIA LTD AND OTHERS v. STRAWBERRY HILL DEVELOPMENT LTD AND ANOTHER
Court

Lands Tribunal
Case number

LDLA33/1982

The Tribunal held that 'fair market rent' under s.115(1) is a market‑based concept reflecting rents that might reasonably be expected in the market, excluding atypical one‑off transactions; it rejected package‑deal discounts as outside s.115(1), treated tenant inertia as a possible but fact‑specific market factor (no substantial adjustment on these facts), required other disputed tenancy terms to be fixed under ss.119I/119J before calculating rent, and fixed specific new tenancy durations, terms and monthly rents for each disputed property accordingly.
30 Oct 1982

NORDIC ASIA LTD AND OTHERS v. STRAWBERRY HILL DEVELOPMENT LTD AND ANOTHER

Citation

NORDIC ASIA LTD AND OTHERS v. STRAWBERRY HILL DEVELOPMENT LTD AND ANOTHER
Court

Lands Tribunal
Case number

LDLA43/1982

The fair market rent under s.115(1) is the rent typical of the market and ascertainable from comparable market transactions after excluding atypical or one‑off transactions; the Tribunal may not apply a general discount (e.g. for alleged 'package deals') unless a comparable itself is atypical, and the word 'reasonably' in s.115(1) only qualifies 'might be expected' not the broader reasonableness tests urged by applicants; tenant inertia may be a market factor but on the facts here did not require adjustment; the Tribunal must also determine other disputed terms under ss.119I/J and consider th…
30 Oct 1982

NORDIC ASIA LTD AND OTHERS v. STRAWBERRY HILL DEVELOPMENT LTD AND ANOTHER

Citation

NORDIC ASIA LTD AND OTHERS v. STRAWBERRY HILL DEVELOPMENT LTD AND ANOTHER
Court

Lands Tribunal
Case number

LDLA54/1982

The Tribunal held that fair market rent under s.115(1) is the rent which might reasonably be expected to be obtained in the market (excluding atypical comparables and disregarding the Ordinance), and that the Tribunal has no statutory power to apply a separate "reasonableness" discount (such as for a corporate "package deal") unless a comparable is shown to be atypical; tenant inertia is a market factor but required no substantial allowance on these facts; Tribunal must fix disputed terms under ss.119I/119J and applied those provisions to preserve existing instalment and management charge pos…
30 Oct 1982

NORDIC ASIA LTD AND OTHERS v. STRAWBERRY HILL DEVELOPMENT LTD AND ANOTHER

Citation

NORDIC ASIA LTD AND OTHERS v. STRAWBERRY HILL DEVELOPMENT LTD AND ANOTHER
Court

Lands Tribunal
Case number

LDLA45/1982

The Tribunal held that 'fair market rent' under s.115(1) is the rent which might reasonably be expected to be obtained in the market (excluding atypical special-case rents) while disregarding the Ordinance's effect; discounting for a generic 'package deal' is impermissible unless a comparable is atypical; tenant inertia is a relevant market factor only where comparables are relettings but required no substantial deduction on the facts; other tenancy terms (duration, instalments, deposits, fittings, management charges) are fixed under ss.119I/119J consistent with prior contractual positions un…
30 Oct 1982

NORDIC ASIA LTD AND OTHERS v. STRAWBERRY HILL DEVELOPMENT LTD AND ANOTHER

Citation

NORDIC ASIA LTD AND OTHERS v. STRAWBERRY HILL DEVELOPMENT LTD AND ANOTHER
Court

Lands Tribunal
Case number

LDLA44/1982

The statutory term "fair market rent" under Section 115(1) requires the Tribunal to fix the prevailing market rent for comparable premises excluding abnormal or non-typical transactions; it does not permit an independent reasonableness cap or a general discount for a corporate "package deal." Tenant inertia is a market factor and may justify adjustment only if present in the relevant comparables but was not significant on these facts. Other terms (duration, instalments, deposits, fittings, management charge allocation) were fixed under Sections 119I/119J, and the Tribunal set specific rents a…
30 Oct 1982

NORDIC ASIA LTD AND OTHERS v. STRAWBERRY HILL DEVELOPMENT LTD AND ANOTHER

Citation

NORDIC ASIA LTD AND OTHERS v. STRAWBERRY HILL DEVELOPMENT LTD AND ANOTHER
Court

Lands Tribunal
Case number

LDLA42/1982

The Tribunal held that 'fair market rent' under Section 115(1) means the rent typical of the relevant market ascertained by reference to normal market comparables, excluding rents produced by special or non-typical circumstances; it rejected a general discount for 'package deals' because corporate participation is a market fact not a distinct statutory discount; tenant inertia is a market factor but on these facts required no substantial adjustment; differences between 2- and 3-year terms did not warrant separate adjustments; Tribunal must determine other disputed lease terms (installments, d…