Hotels could see their rates bills tumble by as much as 60 per cent next year because of the Government's decision to revalue properties on a yearly basis as opposed to the three years used in the past, according to Chesterton Petty.
Other sectors, including luxury residential, retail, office and industrial could see rates fall anywhere from 6.5 per cent in the case of luxury residential to 21 per cent for retail.
The Government announced last week that it would move to yearly valuation using October 1 this year as the basis for assessment.
At the moment, rates are based on a three-year period, calculated on income generated by a property as of July 1, 1996. They would have been due for recalculation on July 1, next year.
The Government was forced to rethink property valuation by the dramatic downturn in all sectors of the property market and worsening recession in Hong Kong.
'By reassessing annually, rateable values should in future more accurately reflect the economic circumstances affecting ratepayers' premises at the time he makes the rate payment,' said Simon Lynch, valuation manager with Chesterton Petty.
According to Chesterton Petty's figures, if the Government sticks to its 4.5 per cent levy, luxury homeowners can expect a 6.5 per cent cut in rates next year.