Regulations on Real Estate Appraisal Article 79

Estimation of capital annual interest in respect of the overall capital interest rate for the method of land development analysis shall be based upon the Articles 58 and 59, and makes reference to the following formulae:Overall capital interest rate = capital annual interest rate x (land value ratio + building value ratio x 1/2 ) x development years.For those subject properties that bear unusual capital interest, or whose construction of buildings does not start immediately after acquisition of land, their overall capital interest rate can be further adjusted on the part of 1/2 specified in the above paragraph, and be detailed in the appraisal report.Building value for the building value ratio in paragraph 1 can be estimated based upon the sum of construction costs and planning and design fee.