In Ibraco's circular to shareholders dated 17 September 2013 in relation to a property development in Bintulu, the valuation certificate on the development lands provided an example of land valuation adopting residual method. The formulas are as follows:
Residual land value when the proposed development is completed =
Gross Realisation (Development) Value (GRV/GDV) -
Total Development Cost (including finance cost) –
Developer’s profit
Current residual land value or market value =
Residual land value when the proposed development is completed x
present value factor over development period
See Ibraco's circular to shareholders dated 17 September 2013
No comments:
Post a Comment