Site Information : |
sf |
sm |
|
Site Area |
215,280 |
20,000 |
|
Proposed DGP Plot Ratio (Max.-Gross) |
1.4 |
1.4 |
|
Approved Built-up Area (Gross) |
301,392 |
28,000.0 |
|
Proposed Efficiency of Site Utilisation (%) |
85.0% |
80.0% |
|
Proposed Net Floor Area |
256,183 |
22,400.0 |
|
Planning Application Period (Year) |
0.75 |
0.75 |
|
Construction Period (Year) |
2.00 |
2.00 |
|
Marketing / Letting Period (Year) |
- |
- |
|
Assumptions : |
Gross Development Value : |
|
|
|
Estimated Current Sale Price ($psf) |
$1,500 |
|
|
Estimated Current Monthly Rental ($psf/mth) |
- |
|
|
Current Prime Investment Yield |
- |
|
|
Marketing Fees (% of GDV) |
1.0% |
|
|
|
Development Costs : |
Ancillary Costs (Demolition, landscaping, etc.) |
$0 |
|
|
Building Costs ($psf) |
$450 |
|
|
Contingencies (% of total Building costs) |
5.0% |
|
|
Professional Fees (% of total bldg. costs + Contcs.) |
8.0% |
|
|
Interest on total Construction Costs |
7.0% |
|
|
|
Developer's Return for Risk and Profit (% of NDV) |
15.0% |
|
|
|
Land Costs : |
Cost of land purchase (Stamp Duty & Legal costs) (%) |
3.00% |
|
|
Property Tax (% of 5% of Land Value) |
10.0% |
|
|
Holding Cost on Land (% for 2.75 years) |
7.0% |
|
|
|
The Valuation : |
|
|
|
VALUE OF PROPOSED DEVELOPMENT |
|
|
|
Gross Development Value |
|
$384,274,800 |
|
Less: Marketing Fees |
|
$3,842,748 |
|
|
Net Development Value |
|
|
$380,432,052 |
|
COST OF PROPOSED DEVELOPMENT |
|
|
|
Ancillary Cost |
$0 |
|
|
Building Cost |
$135,626,400 |
|
|
Contingencies |
$6,781,320 |
|
|
Professional Fees & site salaries |
$11,392,618 |
|
|
Interest on construction cost |
$21,532,047 |
|
|
(on 50% of Bldg & Ancillary Costs & Prof. fees for 1.25 yrs) |
|
|
|
|
Total Development Costs |
|
$175,332,385 |
|
|
Developer's Return for Risk & Profit |
|
$57,064,808 |
|
|
Total Expected Costs (incurred on completion) |
|
|
$232,397,193 |
|
III. LAND COST |
|
|
|
Residual Land Cost (in 2.75 years' time) |
|
|
$148,034,859 |
Less : Holding Cost on Land (PV $1 for 2.75 yrs @ 7%) |
|
|
$13,362,635 |
|
|
|
$134,672,224 |
Less : Acquisition Cost |
|
|
$3,870,818 |
Less : Property Tax |
|
|
$1,774,125 |
(AV=5% of land value @ 13% tax rate for 2.75 yrs) |
|
|
|
|
Land Value (Before DP) |
|
|
$129,027,281 |
Differential Premium |
|
|
$81,770,833 |
Current Land Value |
|
|
$47,256,448 |
|
|
say |
$47,257,000 |
|
|
|
|
Before DP |
UNIT VALUE OF LAND: |
psf |
|
$599 |
|
psf/Plot Ratio |
|
$428 |
|
Computation of Differential Premium for Change of Use |
Case fact: |
|
|
Location |
West Coast |
|
Land Area |
20,000 |
sqm |
Tenure |
30-year lease commencing from 1 Feb 2013 |
Unexpired term of lease |
25 |
year |
|
(25 years as at 2017) |
|
Restriction in title: |
|
|
Existing Use Group |
Group D |
Industry |
Gross Plot Ratio |
2.5 |
|
Proposed Development: |
|
|
Proposed Use |
Group B2 |
Residential |
Proposed GPR |
1.4 |
|
|
Differential premium computation: |
|
|
Prevailing DC Table |
Sep-16 |
|
Sector |
112 |
|
Residual Tenure |
25 |
year |
|
Leasehold value as % of freehold value |
54.6% |
|
|
Development Baseline: |
|
|
Use Group |
Group D |
|
DC Rate |
$1,050 |
psm |
Base GFA |
50,000 |
sqm |
Development Baseline value |
$28,665,000 |
|
|
Development Ceiling: |
|
|
Use Group |
Group B2 |
|
DC Rate |
$4,340 |
psm |
Proposed GFA |
28,000 |
sqm |
Development ceiling value |
$66,349,920 |
|
|
Differential Premium |
$37,684,920 |
|
|
Step2: Computation of UP (extension of lease to 99 years) |
Chief Valuer's Assessment of market value of 99-year lease |
Based on Residential Use at GPR of 1.4 |
Market Value |
$250,000,000 |
$8,928.57 |
Leasehold Year |
99 |
|
Value of 99 years as percentage of freehold value |
96.0% |
|
|
Remaining lease |
953 |
|
Valueof 50 year lease as a percentage of freehold value |
64.6% |
|
|
Premium for 50-year tenure |
$168,229,167 |
|
|
Upgrading Premium |
$81,770,833 |
|
|
Total DP + UP |
$81,770,833 |
|
|