ABSTRACT
This chapter focuses on two valuation techniques used in Hong Kong, the Regression Based Indexation and the Reference Assessment Approach. Regression Indexing has widespread application to the valuation of many types of property providing that there is sufficient market evidence available. The principal tool for Computer Assisted Mass Appraisal (CAMA) is multiple regression analysis. Various CAMA techniques could be used to estimate the values for the reference assessments, such as multiple regression analysis or Robert Carbone and Richard Longini’s feedback procedures, or techniques such as neural or adaptive networks that have been applied by R. Borst. The property tax valuation problem is dominated by high-rise residential, office and factory buildings, and typically there are many assessments or occupations in each building. The solution in Hong Kong has been to identify a reference assessment in most multi-unit or multi-assessment buildings and to tightly control the intra-building variation in assessment values.
