Land, buildings, plant and machinery often make up the largest part of a company's balance sheet. Valtech Valuation provides independent property, plant and equipment (PP&E) valuation in Hong Kong – fair value and depreciated replacement cost assessments for real property, machinery and specialised assets under HKAS 16, HKAS 40 and HKFRS 13.
When Is a PP&E Valuation Required?
- Revaluation model (HKAS 16) – revaluing a class of assets often enough that carrying amount stays close to fair value.
- Investment property (HKAS 40) – remeasuring property at each reporting date under the fair value model.
- Impairment testing (HKAS 36) – determining recoverable amount where indicators exist.
- Acquisitions (HKFRS 3) – restating tangible assets to fair value in a purchase price allocation.
- Transactions, financing and insurance – asset transfers, security for lending and reinstatement cost.
- Listing Rules disclosure – property valuations for certain transactions and listing documents.
Assets We Value
Commercial, industrial and residential property; industrial land and buildings across the Greater Bay Area and wider Mainland China; plant and machinery, including production lines and specialised equipment; vessels, vehicles and mobile plant; infrastructure assets; and right-of-use assets under HKFRS 16. With our Singapore office, a portfolio spread across several jurisdictions can be covered in one engagement.
Our Valuation Approaches
- Market / direct comparison – where comparable transaction evidence exists, typically for standard commercial, industrial and residential property.
- Income capitalisation or DCF – for income-producing assets such as investment property, leased premises and concession-based infrastructure.
- Depreciated replacement cost – for specialised assets rarely sold on their own, adjusting the cost of a modern equivalent for physical deterioration and functional and economic obsolescence.
- Residual method – for development sites.
Highest and best use is required, not optional. HKFRS 13 measures fair value by reference to the asset's highest and best use from a market participant's perspective. An older industrial building on a site with redevelopment potential may be worth considerably more than its value in current use – and the report will say so.
Specialised Assets
The same Hong Kong team values mining and mineral assets under the VALMIN Code and Chapter 18 of the Listing Rules, and biological assets under HKAS 41 – plantations, livestock and aquaculture – which sit outside the capability of most general practice firms.
Frequently Asked Questions
How often must revalued assets be revalued?
Often enough that carrying amount does not differ materially from fair value – annually in volatile markets, every three to five years for stable assets. Revaluing one asset in a class means revaluing the whole class.
Do you value Mainland China property for Hong Kong listed companies?
Yes. Cross-border portfolios are common, and reports are prepared to the standard the Hong Kong filing requires while reflecting local market evidence and land use rights.
Why Hong Kong Companies Choose Valtech
PP&E valuations feed into audited accounts, listing documents and lending decisions, and are reviewed by auditors, the Stock Exchange, banks and overseas stakeholders.
- A strong team with outstanding international credentials – our directors include Chartered Valuation Surveyors (MRICS) alongside CPA, CFA, FRM, ABV (AICPA) and China Certified Public Valuer holders. When your valuation is reviewed by authorities, auditors and international stakeholders, internationally recognised surveying and finance credentials give it immediate standing.
- Senior members closely monitor every valuation – a director is personally involved from inspection planning to sign-off. Your concerns are addressed by an experienced professional who knows the asset and the file.
- Built for audit challenge – obsolescence adjustments, comparables and highest-and-best-use reasoning are shown, not asserted.
- ISO 9001 certified quality management – defined review steps before any report is released.
- Proven track record – more than 1,000 valuations and 18 years serving Hong Kong companies.
Request a PP&E Valuation Quotation
Tell us the asset type, location, purpose and valuation date. A director-level valuer will reply with scope, fee and turnaround. Call +852 2388 9262 or email admin@valtech-valuation.com.
More detail: Property, plant & equipment valuation – Valtech Hong Kong
Valtech Valuation Advisory Ltd, Unit 2106, 21/F, Futura Plaza, 111-113 How Ming Street, Kwun Tong, Kowloon, Hong Kong. This article is general information, not valuation, accounting, tax or legal advice for any specific entity.