The Ratings and Valuation Department calculate the "Rateable Value (RV)" for your property, each financial year, once a year.
What factors affect the rateable value of a property? How to make a request to Rating and Valuation Department (RVD) for review of the rateable value?
"Rateable value is an estimate of the annual rental value of the property at a designated valuation reference date (generally on 1 October of the previous year, e.g. For the 2010-2011 rateable value, the designated reference date is 1 October 2009), assuming that the property was then vacant and to let. When assessing the rateable value, all factors which affect the rental value of the property are considered, such as -
•open market rents around the valuation reference date, for similar properties in the locality;
•age;
•size;
•location;
•floor;
•direction;
•transport facilities;
•amenities;
•quality of finishes;
•building maintenance & repair;
•property management, etc."
In practice: how accurate a reflection is the RV to the "market rate" of rental value that could be achieved on the same property?
I.e. is the RV a useful indicator of the realistic "market rate" at which the property would rent out? Or a disconnected metric (e.g. in the UK, council tax is assessed in "bands" and properties were placed in "bands" many years ago and rarely re-assessed; although clearly the RV approach is re-calculating annually in the HKSAR).
Thoughts welcome. Many thanks