1. The three kinds of valuation
In Hong Kong the word valuation covers at least three different things, with different cost, purpose and standing. Knowing which one you need saves both time and money.
In an ordinary secondary transaction, online estimates screen candidates, the bank's formal valuation decides how much you can borrow, and a surveyor's report is for probate, litigation, audit or corporate transactions where an independent professional opinion is required.
| Type | Who produces it | Cost | Purpose |
|---|---|---|---|
| Instant online estimate | Bank's automated model | Free | Screening and comparing lenders |
| Formal bank valuation | Valuation firm appointed by the bank | Usually borne by the bank | Determines the loan amount |
| Independent surveyor report | Registered professional surveyor | From a few thousand dollars | Probate, litigation, audit, corporate deals |
| Agent's appraisal | Estate agent | Free | To win a listing or close a deal — not independent |
2. Where transaction records come from
Every completed residential sale is registered at the Land Registry and is publicly searchable — the authoritative source for transaction prices. The Rating and Valuation Department publishes a monthly supplement with price per square metre and price indices for class A to E units, territory-wide and by district, which is the right tool for reading the market rather than a single flat.
Agency and property portals are faster and organised by estate, but may include uncompleted deals or errors. Use them to shortlist comparables, then verify against Land Registry or RVD data.
Watch the area basis. First-hand sales have been quoted on saleable area since 2013 and the secondary market has largely followed, but older records may still be on gross area — a 15% to 25% difference that destroys any price-per-foot comparison if mixed.
3. A five-step valuation method
Step one: assemble comparables — same estate, same era, saleable area within 10%, transacted in the last six months, at least five of them.
Step two: convert every one to price per saleable square foot and strip out anomalies: family transfers, internal sales, deals bundled with a car park or furnishings.
Step three: adjust for floor and orientation. Within a block, roughly 0.2% to 0.5% per floor, plus a premium for open or sea views and for avoiding west sun and noise sources.
Step four: adjust for condition using an actual renovation budget, not an impression.
Step five: produce a fair value range and compare it to the asking price. Whatever sits above the top of your range is your negotiating room.
| Adjustment | Typical range | Note |
|---|---|---|
| Floor level | 0.2% – 0.5% per floor | Within the same block |
| View | 3% – 10% | Sea or open outlook vs facing another block |
| Condition | ±3% – 8% | Price it from a real renovation quote |
| Orientation and noise | −2% – 5% | West sun, roadside frontage |
| Car park or furnishings | Case by case | Strip out of the headline price |
4. Common mistakes
Benchmarking against asking prices. Asking is not market; comparing to it drags your whole price band upward. Always use registered transactions.
Mixing gross and saleable area, which can produce two price-per-foot figures 20% apart for the same flat.
Too few or too old comparables. Two or three deals, or anything over six months old, can mislead badly when the index is moving.
Leaving special transactions in. Family transfers and internal sales depart from market and must be removed.
Reading unit price without total price. Small flats carry higher per-foot prices, so group by size before comparing.
Sources: Rating and Valuation Department, Hong Kong Property Review Monthly Supplement (private domestic price index and price per square metre by class A–E); Land Registry residential sale and purchase agreement statistics; HKMA residential mortgage guidelines and survey. Check the latest official release before relying on any figure.
5. From valuation to offer
With a range in hand, open roughly 3% to 5% below its lower bound and attach the transactions you relied on. A reasoned low offer gets a reply; an unreasoned one gets ignored.
The range also sets your ceiling. Write the upper bound down as the line you will not chase past — most buyers lose on discipline in the room, not on technique.