Regulations on Real Estate Appraisal Article 60

Construction or building profit of the subject property should be estimated by multiplying the sum of construction or building cost, planning and design fee, advertisement and sales fee, management fee, tax and other burden by a proper rate of return after taking into consideration the project scale, project duration, economic conditions and other factors.The rate of return stated in the preceding paragraph should be regularly announced by National Association regularly, and determined by reference to the average operation rate of return in construction or building industry before National Association has announced it. The rate of return for different types of construction or building could also be adjusted after taking into consideration the operating risk and duration of construction or building.The duration of construction or building stated in the preceding paragraph refers to the uninterrupted period of time between the applications of a building permit through completion of the building ready for transfer.For the subject property stated in paragraph 1 that is land or one that includes land, land value shall be added into the sum depicted in the previous paragraph.