Answer: The Housing Society acquires properties in the redevelopment area through private negotiation and appoints two valuation consultant firms to assess the market value of the related properties to be acquired.

Calculation of the market value of a property is based on the saleable area. The definition of saleable area is based on the Code of Measuring Practice (CMP) issued by the Hong Kong Institute of Surveyors (HKIS) in March 1999.

According to the CMP, the saleable area of a unit comprises the floor area exclusively allocated to that unit including balconies and other similar features but excluding common areas such as staircases, lift shafts, lobbies and communal toilets. It shall be the area contained within the enclosing walls of the unit measured up to the exterior face of an external wall or the centre line of a separating wall between adjoining units, as the case may be. Enclosing walls separating a unit from a lightwell, a lift shaft or any similar vertical shaft, or a common area, shall be deemed an external wall and its full thickness shall be included. All internal partitions and columns within the unit shall be included.

Saleable area describes the ownership and occupation of the premises in relation to the building structure. As such it also reflects to a certain extent the rights and liabilities appurtenant to the premises.

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