New World Development Company Limited
154
Financial Section
16 Investment Properties
(continued)
Valuation techniques
(continued)
Information about fair value measurements using significant unobservable inputs:
Range of significant unobservable inputs
2016
Fair value
Valuation
techniques
Prevailing
market
rent per month
Unit price Capitalisation
rate
HK$m
Completed investment properties
Hong Kong
Commercial
30,520.1
Income capitalisation
HK$23–HK$480
per square feet
N/A
1.5%–5.4%
Carparks
1,579.1
Income capitalisation HK$1,950–HK$6,000
per carpark space
N/A
4.5%–4.7%
Mainland China
Commercial
14,784.2
Income capitalisation
HK$29–HK$268
per square metre
N/A
3.0%–9.0%
Carparks
4,973.1
Direct comparison
N/A
HK$76,000–
HK$503,000
per carpark space
N/A
Residential
1,528.8
Income capitalisation
HK$116–HK$199
per square metre
N/A
4.8%–15.0%
Total
53,385.3
Range of significant unobservable inputs
2016
Fair value
Valuation
technique
Unit price
Estimated
developer’s
profit and risk
margins
HK$m
Investment properties under development
Commercial
31,673.1
Residual
HK$1,750–HK$60,000
per square feet
5.0%–20.0%
Carparks
1,538.6
Residual
HK$152,000–
HK$269,000
per carpark space
1.0%–5.0%
Total
33,211.7
