NewWorld Development Company Limited
FINANCIAL SECTION
162
16 INVESTMENT PROPERTIES
(continued)
Valuation techniques
(continued)
Range of significant unobservable inputs
2014
Fair value
Valuation techniques
Unit price
Estimated
developer’s
profit and
risk margins
HK$m
Investment properties under
development
Commercial
23,140.1 Residual
HK$1,000–HK$21,500
per square feet
2.0%–13.0%
Carparks
974.3 Residual
HK$125,000–HK$238,000
per carpark space
2.0%–5.0%
Residential
79.6 Residual
HK$16,300 per square metre
11.0%
Total
24,194.0
Prevailing market rents are estimated based on independent valuers’ view of recent lettings, within the subject
properties and other comparable properties. The higher the rents, the higher the fair value.
Capitalisation rates and developer’s profit and risk margins are estimated by independent valuers based on the risk
profile of the properties being valued and the market conditions. The lower the rates and the margins, the higher
the fair value.
At 30 June 2015, the aggregate fair value of investment properties pledged as securities for the Group’s borrowings
amounted to HK$31,881.0 million (2014: HK$31,420.7 million) (note 39).
