Conceptual framework of applying mass valuation in Hong Kong urban renewal compensation scheme

In most urban redevelopment projects that take place in Hong Kong, the Urban Renewal Authority (URA) will offer compensation to an owner-occupier based on the market value of the property. The basis of market value assessment is defined as a seven-year-old flat in a comparable quality building, situated in a similar locality in terms of characteristics and accessibility, and located at the middle floor with average orientation. However, little was done in exploring the application and the integration of mass valuation technique in the compulsory acquisition valuation area. This paper endeavors to illustrate the prospects of using mass valuation techniques to value high-rise and strata-title dilapidated buildings by adopting a standardization statistical method to derive resumption estimates.