Ministry of Finance has new regulations on real estate valuation

According to the Circular, this Vietnamese Valuation Standard regulates and guides the valuation of real estate when appraising prices according to the provisions of the law on prices. This Vietnamese Valuation Standard does not apply to the case of land valuation according to the provisions of the law on land.

Approaches applied in real estate valuation include market approach, cost approach and income approach as prescribed in Vietnamese Valuation Standards or using a combination of approaches.

Valuation methods used in real estate valuation include valuation methods belonging to the approaches or a combination of the approaches specified above. The surplus method is a valuation method built on the basis of combining the market approach, the cost approach and the income approach.

The Ministry of Finance has new regulations on real estate valuation. (Photo: ST)

Based on the characteristics of the real estate to be appraised, the purpose of the appraisal, the time of appraisal, the basis of the appraisal value, the information and data about the real estate to be appraised that can be collected to choose the appropriate approach and method of appraisal.

Also according to this Circular, the highest and best use of real estate is determined on a number of bases, such as the characteristics of the real estate being appraised.

In addition, information on land use planning, construction planning, traffic planning, regulations on land use conversion and regulations on construction investment have been approved by competent authorities.

Circular providing guidance on the analysis of the best and most effective use of Vietnamese Valuation Standards on collecting and analyzing information on assets to be valued.

Total development revenue of real estate is determined based on investigation, survey and collection of information on transfer price, rental price and other revenue-generating factors (such as sales time, start of sales time, sales rate, occupancy rate) of at least 3 real estates with similar characteristics to the project expected to be invested in and built in the area where the real estate is appraised or in an area with potential for profit.

Equivalent technical infrastructure and social infrastructure conditions take into account the trend and level of fluctuation of transfer prices, rental prices and other factors that form the revenue of the project expected to be invested in and built in the future. When determining the total development revenue, it is necessary to analyze and evaluate the ability to implement, complete and put into operation, exploit the project according to the committed investment progress and according to current regulations on real estate.

Determining the level of fluctuation of transfer prices, rental prices and other factors forming revenue is based on the results of market investigations and surveys or published data of statistical agencies or real estate market management agencies, ensuring consistency with the level of fluctuation of the real estate market over the years.

Source: https://www.congluan.vn/bo-tai-chinh-co-quy-dinh-moi-ve-tham-dinh-gia-bat-dong-san-post300580.html