How to Review and Reduce Your Property's Rateable Value

In 2022, Mr. Chan, the owner, purchased a three-bedroom unit in Tsing Yi that was 30 years old for 8 million. After moving in, he discovered that the Rateable Value (RV) on the rates bill was actually higher than that of larger units in the same building. When the rates bill for the first quarter of 2025 arrived, he decided to apply for a review, hoping to 'reduce his tax'. Below will explain how small owners can actually operate.

1. When can you request a review?

• Annual revaluation of properties already assessed for rates After the new rental values for the year are announced on April 1st, objections to the new RV can be submitted between April 1st and May 31st using R20A/ e‑R20A
• Provisional valuation for newly completed properties assessed for rates for the first time The Rating and Valuation Department will notify the ratepayer of the valuation via the "Provisional Valuation Notice" (Form R6). The R23A/ e‑R23A must be submitted within 28 days from the date of notice.

First, confirm whether the objection is for an "annual revaluation" or a "provisional valuation", then choose the correct form and deadline, otherwise the RVD will directly dismiss it.

2. What to write in the review justification?

• Market rent evidence: Actual lease agreements of similar units in the same or adjacent buildings in the past 12 months, lower than the government valuation
• Property condition: Old building age, poor maintenance of public facilities, long-term blocked views
• Changes in supply and demand within the area: A large number of new properties completed, general decline in rents, etc.

Objective evidence such as copies of lease agreements, transaction records, photos or engineering reports must be provided. Simply stating "feels expensive" is not persuasive enough.

3. Application Process (Four Steps)

• Prepare Evidence: Gather lease/transaction records, photos of property defects
• Fill and Submit Forms:
  • Annual Reassessment of Properties Already Assessed for Rates → R20A/ e‑R20A (April-May)
  • Temporary Valuation for Newly Completed Properties for First-Time Rates Assessment → R23A/ e‑R23A (within 28 days)
• Wait for Written Response: RVD usually replies within 2-3 months, accepting to reduce RV; if rejected, reasons will be provided

4. Common Pitfalls

• Only attaching newspaper or website listing prices without real lease evidence
• Comparing different estates or buildings; the Rating and Valuation Department only values comparisons within the 'same estate, same block, same type'
• Using expired or incorrect forms (e.g., R20A should be used for temporary valuation), the application will be considered invalid

5. Property Rate Risk Check Before Buying a House

• Check the RV trend of the estate in the past three years; if the increase has consistently outperformed the actual rent, it can be reviewed later.
• Compare whether the RV gap between high and low floors in the same building is in line with the market price difference; being too close may indicate that the RV of low floors is high.

As long as the owner masters the correct deadline, corresponding forms, and convincing market evidence, they can often bring the RV back to a reasonable level, saving themselves a fixed expense in the long run. Even if there is a chance to successfully reduce the rental value, the RV trend of the estate should be reviewed before buying a house.