Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Valuation comparables and hope value

Legal area

Court

23 Jan 2019

CHUNG SZE HONG v. DIRECTOR OF LANDS

Citation

[2019] HKLdT 6
Court

Lands Tribunal
Case number

LDLR6/2016

The Tribunal found applicants failed to prove vehicular access as at the resumption date and the Block Government Lease covenant operated to preclude attributing development value; section 12(c) LRO applied to exclude value of any expectancy of obtaining building licences or lease modification (including Small House licences); accordingly the best use of the Lots was open storage with pedestrian access only and compensation was assessed by reference to comparable open storage sales (average adjusted unit rate $354.2/sq m) yielding total awards set out, which the Respondent was ordered to pay.
23 Jan 2019

WAN FAT SHING v. DIRECTOR OF LANDS

Citation

[2019] HKLdT 6
Court

Lands Tribunal
Case number

LDLR8/2016

Because the Block Government Lease covenant restricted erecting buildings without Crown approval and s12(c) of the LRO excludes account of any expectancy of obtaining such approval, development potential for NTEH must be disregarded; factual finding that as at the resumption date the lots lacked vehicular access supports best use as open storage with pedestrian access only; valuation must therefore be based on comparable open‑storage land excluding speculative hope value, producing the awarded compensation amounts.