Rating valuation

The collection and assessment of rates is the responsibility of the Rating and Valuation Department of Hong Kong. The rateable value of each property is calculated by the Rating and Valuation Department. The definition of rateable value is to estimate the reasonable annual rent that the property can get when it is used for rent on the specified valuation base date. The rateable value is calculated with reference to the market rent of similar properties in the same district during the appraisal period, and adjusted according to the area, location, facilities, quality and management level of the property. If property prices go up, rents will go up, and so will rateable values. The rateable value of the property is multiplied by a percentage (in the 2006-2007 financial year, the percentage is still 5%) and then paid in four installments.