Property Taxes

Stephen Ching

M5, 2023-24

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Stephen Ching Property Taxes

Price Indices for Property Market

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Stephen Ching Property Taxes

Annual Changes in Property Price Indices

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Stephen Ching Property Taxes

Annual Changes in Property Price Indices

min max average

Domestic −28.20% 26.62% 5.03%
Office −36.88% 58.88% 6.48%
Retail −27.64% 39.53% 6.61%
Flatted Factories −24.31% 41.08% 9.52%

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Stephen Ching Property Taxes

Market Yields

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Stephen Ching Property Taxes

Market Yields

min max average annual return

Domestic 2.3% 5.5% 3.6% 8.63%
Office 2.5% 7.9% 4.4% 10.88%
Retail 2.4% 8.1% 4.4% 11.01%
Flatted Factories 2.8% 13.9% 7.1% 16.62%

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Stephen Ching Property Taxes

Land Premium, Rates, Rents and Property Tax

Land premium: land sale, land exchange transactions, lease

modification transactions, private treaty grant, redevelopment and
conversion of industrial buildings

Rates: 5% of the rateable value of the property

Government rents (Article 121): 3% of the rateable value of

the property (New Territories, New Kowloon north of Boundary
Street, leases granted or non-renewal leases extended on or after
May 27, 1985)

Property tax: 15% × (rental income − rates paid by owner −

statutory repair allowance (around 20% of rental income));
mortgage deductions or deductions from profits tax may be
applicable
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Stephen Ching Property Taxes

Land Premium, Rates, Rents and Property Tax

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Stephen Ching Property Taxes

Land Premium and Budget Surplus

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Stephen Ching Property Taxes

Cumulative Land Premium, Rents and Rates

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Stephen Ching Property Taxes

Cumulative Land Premium, Rents and Rates with
Owner-Occupier Concession

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Stephen Ching Property Taxes