Important note:

• If you are taking the Sales Agent Exam (SQE), you can skip this lesson on Part 6.
• If you are taking the Estate Agent Exam (EAQE), you must learn Part 6.

Part 6 helps explain how property values are determined and the factors influencing these valuations in Hong Kong.

• Supply and Demand: How limited land and government policies influence property prices in Hong Kong.
• Property Value: Understanding "market value" and its importance in real estate.
• Valuation Methods: Different ways to determine property value, including:
  • Direct Comparison: Comparing with similar recently sold properties.
  • Investment Approach: Considering the income a property can generate.
  • Profits Method: Used for properties like hotels, based on their profits.
  • Replacement Cost: Estimating the cost to rebuild the property.
• Land Valuation: Factors like size, zoning, and lease conditions that affect land value.
• Valuation Reports: Key information included in property valuation reports.
• Market Trends and Sales Methods: Identifying market trends and methods of selling properties, such as through agents, auctions, and tenders.