APC Project 1 Questions PDF

APC Project 1 - Questions [**☑** [Hypo](#hypo)] [**☑**[Direct Comparison](#direct-comparison)] [**☑**[Comparables](#comparables)] [**☑**[Adjustment](#adjustment)] [**☑** [GDV](#gdv)] [**☑** [Interest Rate](#interest-rate)] [**☑** [Professional Fee](#professional-fee)] [**☑** [Developer's Pro...

APC Project 1 - Questions [**☑** [Hypo](#hypo)] [**☑**[Direct Comparison](#direct-comparison)] [**☑**[Comparables](#comparables)] [**☑**[Adjustment](#adjustment)] [**☑** [GDV](#gdv)] [**☑** [Interest Rate](#interest-rate)] [**☑** [Professional Fee](#professional-fee)] [**☑** [Developer's Profit](#developers-profit)] [**☑** [Development Period](#development-period)] [**☑**[Marketing Cost](#marketing-cost)] [[Construction Cost]](#construction-cost) [**☑** [CP Comparables](#cp-comparables)] [[MLP/ Planning]](#mlp-planning) [[Premium]](#premium) [[BC extension]](#bc-extension) [[Retail]](#retail) [[BS]](#bs) [[Others]](#others) [[Project 2]](#project-2) +-----------------------------------------------------------------------+ | **[Definition of Market Value]** | | | | - | +=======================================================================+ | **Hypo** | | ======== | +-----------------------------------------------------------------------+ | **[☑ Why is your transfer plant 3m?]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ What is the purpose of a transfer plate? ]** | | | | - - | | | | **[☑ Is it accountable for GFA? Do you know the maximum thickness for | | transfer plate?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Is it common to have a transfer plate?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Can you explain the headroom of your hypo? How do you arrive at | | your headroom?]** | | | | - - | | | | **[☑ However, only one of your comparable have 3.15m headroom while | | the rest dont have? Doesnt mean 3.15m is not common?]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ Did you notice that most of the developments in Tsuen Wan also | | have a lower headroom than 3.15m? Do you still think 3.15m headroom | | is still marketable?]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ Have you tested the other headroom? Suppose higher headroom | | could fetch a higher unit rate?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ What is the implication if I propose a domestic floor with 4m | | headroom. Any requirements for headroom?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Why do you put the refuge floor on the top roof instead of | | middle floor? / Why your development do not have a refuge | | floor?]** | | | | - - - | | | | 1. 2. 3. 4. | | | | - - | | | | **[☑ Why dont you consider separating the refuge floor? Then you | | could sell the whole top roof which could fetch a higher GDV for | | special unit?]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ Does all buildings require a refuge floor?]** | | | | - - | | | | | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ Can the residents BBQ on refuge floor?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Why do you provide a 3/s podium instead of 2/s podium in your | | After Scenario?]** | | | | - - - | | | | **[☑ Why separate GA instead of putting on the G/F?]** | | | | - - - | | | | **[☑ Why do you provide a 2/s podium instead of 1/s podium in your | | Before Scenario?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Why is a separate lobby designated for CCC?]** | | | | - - - - | +-----------------------------------------------------------------------+ | **[☑ Is there any statutory requirements of provision of | | CCC?]** | | | | - - - | | | | These regulates the | | | | - - - | +-----------------------------------------------------------------------+ | **[☑]** **[Have you considered providing 2 block instead | | of 1 block. As current there are 13 units per floor in your proposed | | development]** | | | | - - - - | +-----------------------------------------------------------------------+ | **[☑ How come you propose 13 units? Can you name some new development | | with 13 units per floor?]** | | | | - - - - - - - | +-----------------------------------------------------------------------+ | **[☑ Why no balcony for both your before and after | | scenario?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Will you provide bal/up if you are developers?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ What development in Tsuen Wan has balconies?]** | | | | - - - - - | | | | **[No Balconies:]** | | | | - - - - | | | | **[New Development in other district NO BALCONIES]** | | | | - - - | | | | Developers have to consider both the increase in construction cost | | and increase in gross development value. Developers could opt for | | other areas for maximizing the 10% cap. i.e. non-structural | | prefabricated external wall, larger lift shaft | +-----------------------------------------------------------------------+ | **[☑ Do you think the Government would underestimated the land value | | if the applicant decided to build balcony?]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ How is the lease modification for the balcony and | | UP?]** | | | | - - - - - | +-----------------------------------------------------------------------+ | **[☑ Why your hypo dont have sky garden as your s.16 application | | scheme has]** | | | | - - - | | | | | | | | - - - - - | +-----------------------------------------------------------------------+ | **[☑ How did you arrive at your flat mix? Justify your | | marketability?]** | | | | **[You mentioned in your report that your hypothetical development is | | based on highest best use / optimum value, have you considered | | marketability too?]** | | | | \[After Scenario\] | | | | 1BR : 2BR : 3BR = 3 : 6 : 1 | | | | \[Before Scenario\] | | | | 1BR : 2BR : 3BR = 3 : 6 : 1 | | | | - - - - - - | +-----------------------------------------------------------------------+ | **[☑ What is the group of customers that you are targeting at for | | your proposed development?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ U based on Census 2023, but it is still the evidence in 2023, | | but you are projecting the demand after 42years. How can you make | | sure that such flat mix is still marketable?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Are you aware that 3-BR units still have good sales performance | | while your residual also have the highest GDV for | | 3-BR?]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ Why compose 2-BR/1-BR flat type when the unit rate of 3-BR fetch | | higher rate? Given that the demand for both flat type are | | similar]** | | | | - - - - - | +-----------------------------------------------------------------------+ | **[☑ So, did you work out a residual valuation for the scenario of | | providing 60% of 1-BR unit instead of 30%? The 3-BR unit can also be | | sold when their price are low enough, so will not violate the | | assumption.]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ Why don't you propose studio flat? Studio flats were 100% sold | | in Aurora. It is still not convincing to me that not to propose | | studio unit.]** | | | | - - - - | +-----------------------------------------------------------------------+ | **[☑ Do you think the site is easy to approach from MTR? With the | | poor accessibility, do you think there is potential for your site to | | provide large‐size unit instead of the current | | proposal?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ How do you come up with the open building view and building view | | proportion for your hypothetical development?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Do you have internal staircase inside the special | | unit?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Have u considered merging special units to a duplex or simplex? | | ]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ Why don\'t you offer duplex units?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ How large is the size of your special units and the | | roof?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Is the surface of the transfer plate enough to put the flat | | roof?]** | | | | - - | +-----------------------------------------------------------------------+ | **[⍰ According to your market analysis, the sale performance of roof | | unit are low, like only 75% within 6 months. However, based on the | | assumption of residual valuation, all unit should be sold on the same | | day. Can you explain?]** | | | | **?????????** | +-----------------------------------------------------------------------+ | **[☑ How to access to the roof area? Internal staircase? Access by | | internal staircase means there will be a stairhood at the roof. Is | | the area of stairhood a kind of saleable area in a sales | | brochure?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ How did you arrive at the size of your reference | | unit?]** | | | | \[After\] | | | | 1BR:55.55m2 | | | | 2BR:41.66m2 | | | | 3BR:29.04m2 | | | | \[Before\] | | | | 1BR:55.21m2 | | | | 2BR:41.10m2 | | | | 3BR:29.49m2 | | | | - - - - - | | | | **[☑ As you reference new development in other districts, how can you | | be sure these larger units are marketable in Tsuen | | Wan?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Why not allow larger unit size, with 10 units per floor? | | ]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ I understand that you made reference to the development in Tsuen | | Wan for your flat mix, but they are all built several years ago. Any | | thought?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Will you change your flat mix today as at today\'s | | market?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Have you considered developing an office?]** | | | | - | | | | 1. 2. 3. | +-----------------------------------------------------------------------+ | **[☑ Why did you provide 3 lifts and 2 staircases?]** | | | | - - | | | | **[Is 60m² enough for putting one lift and two | | staircases?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Is it necessary to provide 2 staircase?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ How do you come up with the common area?]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ Why is your proposed no. of storeys is the highest of best | | use?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Why not maximize site coverage?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Is your hypothetical development taking reference from Approved | | GBP?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Are there any differences between your hypothetical development | | and the approved GBP?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Is your hypothetical development taking reference from s.16 | | application?]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ Will you adopt MiC method for your hypothetical | | development?]** | | | | - - - - | | | | **[☑ Do you know about advantage and disadvantages of MiC | | construction method?]** | | | | - - | | | | | | | | - - - - - | | | | | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ Why do you adopt the OZP plot ratio? How about the B(P)R plot | | ratio?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Please explain why flat roof units are provided on | | 2/F?]** | | | | - - | | | | **[Any requirement for a flat roof?]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ Would your saleable ratio 83% too high?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ How do you come up with the size of the plant | | room?]** | | | | - | | | | **[☑ Your "Before" and "After" are have different GFA, why they are | | adopting the same size of plant room?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ What kind of plant room is incl. in your plant | | room]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ You are not an architect, why can you ensure that your apartment | | layout is feasible?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Is it necessary to provide a clubhouse in your scheme? Higher | | management fee, still justifiable for providing a | | clubhouse?]** | | | | - | | | | 1. 2. | | | | - | +-----------------------------------------------------------------------+ | **[☑ Do you think it is cost effective to provide a basement carpark | | with only 65/46 spaces for 403/338 units?]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ Why not open carpark on G/F?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ As the site area is small, limited no. of CPS can be provided. | | Do you consider the provision of smaller‐size unit would be more | | favorable?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ You have 65/46 covered CPS in your "After" scenario and made an | | assumption of 40 sqm for each CPS. Do you think it is too | | little?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ What is the implication to the common area if the headroom is | | 3.5m?]** | | | | - | +-----------------------------------------------------------------------+ | **[⍰]** **[Do you know how to measure headroom? Do you | | know what is the normal headroom for residential development in Hong | | Kong?]** | | | | **\[to be supplemented?????\]** | +-----------------------------------------------------------------------+ | **[☑ What is NOFA, how does it relate to GFA?]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ What is Net Operational Floor Area refers?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ What is the meaning of \"provide at cost\" for L/UL | | CPS?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ What is the size of your CPS?]** | | | | - - - - | +-----------------------------------------------------------------------+ | **[☑ What is your basis of adopting average area for car parking | | space?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Do you know the future supply of residential units in your | | subject location? Have you taken this into account in your | | valuation?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Why don\'t you merge the unit at the top roof into a larger | | special unit? As 2/3-BR special units are supposed to be more | | marketable?]** | | | | - - - - | +-----------------------------------------------------------------------+ | **Direct Comparison** | | ===================== | +-----------------------------------------------------------------------+ | **[☑ Why did you not apply the Direct Comparison | | Method?]** | | | | - - - | | | | | | | | - | | | | | | | | - | | | | | | | | - | | | | | | | | - | | | | | | | | - - | +-----------------------------------------------------------------------+ | **[☑ What Government Accommodation is included in the direct land | | comparables?]** | | | | - | | | | | | | | - | | | | | | | | - | | | | | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ Have you looked at different private acquisition transactions in | | your vicinity?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Why do you say Direct comp in 2023/2022 is | | outdated?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Why are both land sale comparables at a higher rate, although | | you said its location is poorer?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Is the GA of your direct comparables also fully reimbursed? If | | yes should be no impact?]** | | | | - - | +-----------------------------------------------------------------------+ | **[⍰ Can is the Direct Comparison Method served as a reference | | purpose? As the AV is different from your calculation]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Direct Comparison method is the best method for valuation, while | | residual valuation involve lots of assumptions, do you think adopting | | residual valuation is a better way?]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ Do you know the height restriction of the two land | | comparables?]** | | | | - - | +-----------------------------------------------------------------------+ | **Comparables** | | =============== | +-----------------------------------------------------------------------+ | **[☑ Could you explain how you came up with these developments as | | comparables?]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ Why don\'t you consider Indihome as your | | comparables?]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ Why don\'t you consider Parc City as your | | comparables?]** | | | | - - - - - | +-----------------------------------------------------------------------+ | **[☑ Why don\'t you consider Ocean Pride as your | | comparables?]** | | | | - - - - - | +-----------------------------------------------------------------------+ | **[☑ Why don't you consider Pavilia Bay as your | | comparbales?]** | | | | - - - - - | +-----------------------------------------------------------------------+ | **[☑ Why you did not consider Po Shek Mansion and Sheung Chui | | Court?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Did you aware any difference in the lease of your | | comparables?]** | | | | - - - - | | | | Remarks: Chelsea Court are using 水冷氣 | +-----------------------------------------------------------------------+ | **[☑ Why does a different BR require different comparables? why not | | simply adjust by adjustment?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Did your comparables provide balcony? How did you incorporate | | the value of balcony in your calculation?]** | | | | - - | | | | **[Why no conversion factor for UP and Balcony but same unit | | rate?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Why don't you collect new comparables for your before | | scenario?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Why are there other more recent comparable but you did not | | adopt?]** | | | | - - - - | +-----------------------------------------------------------------------+ | **[☑ Did you intend to choose comps with similar size?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ What are your comps selection criteria? Why have you not chosen | | any sea view comps?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ As you mentioned the basis is market value, what is arm's length | | transaction? How you make sure your comparables are arm's length | | transactions?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ In your comparable analysis, you adopted the comparables which | | is having 20% adjustment and the other comparables is below 10%, Do | | you think this is an arm's length transaction?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Why not use 1st hand transactions?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ 1st hand and 2nd hand transaction any difference?]** | | | | - - | +-----------------------------------------------------------------------+ | **[⍰]** **[Can you elaborate on stamp duty for that | | transaction? How much is stamp duty? What about SSD?]** | | | | - | +-----------------------------------------------------------------------+ | **[⍰ Have you considered premium comparables? Are there any lease | | modification cases executed in the vicinity? the executed premium | | will be the good comparables, have you summarized a table of such | | evidence? What is the actual premium of your subject?]** | | | | - - | +-----------------------------------------------------------------------+ | **[⍰ Why don't you adopt the previous 1st assessment of the same | | lease modification? Suppose all lease conditions are the same and the | | only difference is the time.]** | | | | - - | +-----------------------------------------------------------------------+ | **[⍰ Have you compared your premium assessment with the past lease | | modification cases? What is your analysis on that?]** | +-----------------------------------------------------------------------+ | **[☑ How did you account for the difference between 1 BR unit and 2 | | BR unit ?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ What is the reason for a transaction to be an | | outlier?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ If both the seller and vendor are both companies, how to check | | if it is a related party transaction?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ You mentioned sale comparable of New Haven and Chelsea Court is | | superior to H cube in many ways, then why is the unit rate for New | | Haven and Chelsea Court lower than the unit rate of H | | Cube?]** | | | | - | +-----------------------------------------------------------------------+ | **[⍰ Did you verify the view enjoyed by sale comparable Item X? Any | | photos? Is it really building/ open building view as stated in your | | report?]** | +-----------------------------------------------------------------------+ | **[☑ Why do you adopt these comparables even there is an obvious | | difference between reference unit size and comparable size/ | | difference in floor?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Why don't you select adopted comparables for pair comp analysis | | of quantum adjustment?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ What do you mean actual floor level?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Did you consider the mPD level of your | | comparable?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Any impact for the OZP zoning of your comparable is | | commercial?]** | | | | - | +-----------------------------------------------------------------------+ | **[⍰ Can you tell me the layout of all of your comparables? Did you | | do any adjustments on the difference in layout on your reference | | units and comparables?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Can you tell me the yield of residential units in Tsuen | | Wan?]** | | | | [Aurora] | | | | \[Rental\] 13/1/2024 T2 Room I Middle Floor 280ft2 \$16,000 @\$57 | | | | \[Sale\] 19/3/2024 T2 Room I 22/F 280ft2 \$6,080,000 @\$21,714 | | | | **Yield: 3.2%** | | | | [Aurora] | | | | \[Rental\] 7/1/2024 T3 Room E Low Floor 280ft2 \$16,000 @\$56 | | | | \[Sale\] 18/8/2023 T3 Room E 3/F 289ft2 \$5,000,000 @\$17,301 | | | | **Yield: 4.1%** | +-----------------------------------------------------------------------+ | **[☑ Your comparables do not have green features but your subject | | development has. How would you assess their value?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ How many comparables in your opinion is enough?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Is there any implication for the valuation date? Is it the date | | of application?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ When is the date of application?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Will you adopt comparables after the valuation | | date?]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ How do you assess the transaction price if there are rebates | | involved in the transaction?]** | | | | - | +-----------------------------------------------------------------------+ | **Adjustment** | | ============== | +-----------------------------------------------------------------------+ | **[☑ Have you considered \"Noise\" adjustment in your | | comparables?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Have you considered the impact of the data | | center?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Do you know any noise mitigation measures?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Have you considered the view impact of these noise mitigation | | measure?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Have you considered \"Orientation\" adjustment in your | | comparables?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Why do you adopt multiplication instead of summation for | | adjustment?]** | | | | - - | +-----------------------------------------------------------------------+ | **[⍰ As all your comparables are 2nd hand comparable, do you think | | there should be a difference in price to reflect your development is | | 1st hand?]** | +-----------------------------------------------------------------------+ | **[☑ Why did you adopt a 10% downward location adjustment for | | Aurora?]** | | | | - - - - - | +-----------------------------------------------------------------------+ | **[☑ Aurora, Chelsea Court and New Heaven is estate development, your | | development is single block, any consideration made?]** | | | | - - - - - - - - - - - - | +-----------------------------------------------------------------------+ | **[☑ How do you perform development scale adjustment?]** | | | | - - | +-----------------------------------------------------------------------+ | **[⍰ How did you perform the floor pair analysis?]** | | | | - | +-----------------------------------------------------------------------+ | **[⍰ How did you perform the size pair analysis?]** | | | | - | +-----------------------------------------------------------------------+ | **[⍰ How did you perform the view pair analysis?]** | | | | - | +-----------------------------------------------------------------------+ | **[⍰ How did you perform the headroom pair analysis?]** | | | | - | +-----------------------------------------------------------------------+ | **[⍰ How did you perform the building age pair | | analysis?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ You said Ocean Pride/ Ocean Supreme is too supreme, why do you | | still adopt it for pair analysis for time/ floor | | adjustment?]** | | | | - - | | | | **[☑ You did not adopt Parc City as comparable, but you have adopted | | it in Pair Analysis, could you explain why?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ How did you arrive at your view adjustment?]** | | | | - | | | | | | | | - - - | | | | | | | | - | +-----------------------------------------------------------------------+ | **[☑ Do you think surveyors have different | | adjustments?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Why would you adopt RVD index by class for time | | adjustment?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ RVD index is the overall trend, how can it apply to your | | case?]** | | | | **[As you know RVD index is seeing a broad class area, how do you | | account for it]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ What would you do if there is large difference between your time | | adjustment analysis and RVD index?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ How did you apply adjustment to the special | | units?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Why do you use different developments for pair comps? (for | | headroom adjustment)]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Is Aurora so high adjustment (\~20%) is it still a good | | comparable?]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ I may think that you are purposely discounting the "Before" | | value so substantially in order to charge a higher land premium on | | behalf of the Government. What capacity were you sitting at when you | | were working on this assessment?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Your comparable have shopping malls (H Cube) but urs don't have, | | how do you reflect?]** | | | | **[Do you think H Cube superior to your Subject Site as it equipped | | with a shopping mall below?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Did you consider the public housing near your subject? Any | | impact by them?]** | | | | **[Any GDV implication for surrounding by public | | housing?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Did you aware that Sheung Chui Court is accompanied with a Day | | Care Centres for the Elderly?]** | | | | - - - - | +-----------------------------------------------------------------------+ | **[☑ Is downward adjustment required for residential developments of | | mainland developer/ developer's reputation?]** | | | | - | | | | | | | | - - - - | | | | | | | | - | +-----------------------------------------------------------------------+ | **[☑ Why do you adopt a comparable located in a much lower or higher | | floor level when compared with a reference unit?]** | | | | **[Why do you adopt comparables located on such a low floor level | | when compared with reference unit? This gives rise to high floor | | adjustment so still valid?]** | | | | - - - - | +-----------------------------------------------------------------------+ | **[☑ What is the % adjustment for each floor you have adopted in your | | price list?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ How do you make quantum adjustments? You said the bigger the | | unit, the smaller the unit rate? Will you adopt similar quantum | | adjustments in other sizes of apartments?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ How did you do the adjustment on building age?How? Did you | | consider other factors?]** | | | | - | | | | **[Did you consider court case about what adjustment the court | | adopted?]** | | | | - | | | | **[Which one will you adopt? Court case or your research | | finding?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Is building age linear?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ How did you consider about the internal state of repair for | | building age adjustment]** | | | | - | +-----------------------------------------------------------------------+ | **[⍰ It is obvious that new developments are usually sold with a | | better finished. However, many of your comparables are relatively old | | developments in which the state of internal are different. Did you | | consider these?]** | +-----------------------------------------------------------------------+ | **[☑ Maybe when you take bus/minibus at those comps there are | | vacancies but when you take it at your site it may be full. Did you | | think of that?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Does footbridge connectivity have any impact on your | | comparables?]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ Are there any differences in market value if there is a | | footbridge linking up your site and the MTR stations?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ How to quantify the impact of GA?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Does your GA Child Care Center have a negative or positive | | impact on your development?]** | | | | - - | +-----------------------------------------------------------------------+ | | +-----------------------------------------------------------------------+ | **GDV** | | ======= | +-----------------------------------------------------------------------+ | **[☑ How do you come up with the unit rate adopted in residual | | valuation? How you determine the overall GDV? Has it reflected any | | value for your special units such as flat roof and top | | roof?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ How did you do pair comps to find the GDV of the special | | units?]** | | | | **[How do you arrive at the GDV for each unit and special | | unit?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Why do you have saleable area and effective area? What are their | | differences? How did you arrive at the adjustment ratio for EA from | | SA?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Top floor unit GDV is 10% higher than your typical unit, is it | | still reasonable?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Do you think having a larger flat roof will incur a higher unit | | rate?]** | | | | - | +-----------------------------------------------------------------------+ | **[⍰ How do you arrive at the net consideration?]** | | **[What cash rebates/discounts are deducted? Show me detailed working | | of calculation]** | +-----------------------------------------------------------------------+ | **[☑ Can you clarify why the unit rates adopted in your residual are | | different from the unit rates stipulated in your | | report?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ How would you increase the GDV?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Why is the unit GDV 3BR\>1BR\>2BR?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Will the price of the 3BR be especially high that makes it can't | | be sold?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Is the GDV and cost adopted in the residual valuation present | | value or future value?]** | | | | - | +-----------------------------------------------------------------------+ | **[⍰ Did you aware that the GDV of Aurora are all higher than the GDV | | of the relatively old development?]** | +-----------------------------------------------------------------------+ | **Interest Rate** | | ================= | +-----------------------------------------------------------------------+ | **[☑ What is the deferment rate that you adopted?]** | | | | - | | | | 1. 2. | | | | - | +-----------------------------------------------------------------------+ | **[☑ While the prime rate is for normal ppl, should developers have a | | lower rate?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ What is the difference between deferment rate and | | interest?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ What is this interest rate for?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Under the current market, how would you adjust the deferment | | rate?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ If your developer tells you he can get 5% as interest rate, will | | you consider?]** | | | | - | +-----------------------------------------------------------------------+ | **[⍰ Why not PV the cost incurred in the pre-construction | | period?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Why is the period for PV of construction cost half of the | | construction period?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Change in Interest Rate ]** | +-----------------------------------------------------------------------+ | **Professional Fee** | | ==================== | +-----------------------------------------------------------------------+ | **[☑ Professional fees in both scenarios are the same, why? But | | development scales in both scenarios are different?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ What does Professional Fees cover?]** | | | | - - - - - - - - | +-----------------------------------------------------------------------+ | **[⍰ For a larger scale development, it should have a higher % of | | lower %?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Your site requires a lot of impact assessment, is 6% | | professional fee enough?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Do you think Impact assessments are costless? Where did you | | Include? Do you know exactly how much for one impact | | assessment?]** | | | | - | +-----------------------------------------------------------------------+ | **Developer's Profit** | | ====================== | +-----------------------------------------------------------------------+ | **[☑ What does development profit mean?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Why have you adopted a developer profit of 20%?]** | | | | - - - - - - | +-----------------------------------------------------------------------+ | **[☑ Why select these two?]** | | | | - - - - | +-----------------------------------------------------------------------+ | **[☑ Will you adopt a profit margin for different size | | developer?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Are you aware of the fact that the interest rate is decreasing? | | Do u think your developer's profit is reasonable? How did you arrive | | at your developer's profit?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ In view of the current market, how will you adjust your | | development profit?]** | | | | - | | | | 1. 2. 3. 4. | +-----------------------------------------------------------------------+ | **[☑ Is the contractor\'s profit included in your residual valuation | | assessment?]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ What is the profit on cost for? Developer or | | contractor?]** | | | | - - - - | | | | **[☑ Why do u think need to separate profit on cost and profit on | | land?]** | | | | - - - | | | | | | | | - | +-----------------------------------------------------------------------+ | **[☑ Are you saying that the profit on cost for construction cost is | | to be collected by developer instead of contractor?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Why profit on cost and profit on land the same? / Must the two | | profits in percentage be equal?]** | | | | - | +-----------------------------------------------------------------------+ | **[⍰ Why do u think need to separate profit on cost and profit on | | land? If only adopting profit on GDV only , will you adopt same % for | | the profit?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ If your site is located in Kai Tak, will you adjust your | | developer's profit?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ If the development scale is larger, profit will be larger or | | smaller?]** | | | | - | +-----------------------------------------------------------------------+ | **[⍰ Do you think the profit is more of a cost of finance than | | opportunity cost?]** | +-----------------------------------------------------------------------+ | **[☑ If your subject is a commercial building, will you adjust your | | developer's profit?]** | | | | - | +-----------------------------------------------------------------------+ | **Development Period** | | ====================== | +-----------------------------------------------------------------------+ | **[☑ How will the GA affect the development period?]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ Do you think your development period is too short for both after | | and before? Do you think after and before the development period only | | has 1 year difference is unreasonable?]** | | | | - - - - | +-----------------------------------------------------------------------+ | **[☑ Why is the difference of the development period of your before | | and after scenario is 1 year? Can you justify?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Why is the difference in the CC is 2 months?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Are the 4.5 years calculated until OP or CC?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ What's the months allowed from getting OP to CC?]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ BC period 5.5 years, but you only propose 4.5 years development | | period, is your development period too optimistic?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Your BC is approaching, do you really have enough time to finish | | the project?]** | | | | - - - | +-----------------------------------------------------------------------+ | **[☑ How is your BC extension period calculated?]** | | | | - - | | | | | | | | - | +-----------------------------------------------------------------------+ | **[⍰ How can you prove that your pre‐construction period allowed is | | justifiable?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ What does the pre-construction period include?]** | | | | - - - - - | +-----------------------------------------------------------------------+ | **[☑ Why no extra marketing period/ sale period | | allowed?]** | | | | - - - - | +-----------------------------------------------------------------------+ | **Marketing Cost** | | ================== | +-----------------------------------------------------------------------+ | **[☑ Why does marketing cost 6%? What does the advertisement include? | | Shd the advertisement follow first hand sales | | ordinance?]** | | | | - - - - | | | | \[under lease, just self-certification of compliance of provision of | | sales office and show flats, the SCC submission shall be made upon | | issuance of pre-sale consent under the LandsD Consent Scheme\] | +-----------------------------------------------------------------------+ | **[☑ How do you know the proportion of the marketing | | cost?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Requirement of advertisement under First Hand | | Ordinance]** | | | | - - - - | | | | a. b. c. | | | | - | | | | a. b. c. d. e. f. | | | | - | +-----------------------------------------------------------------------+ | **[☑ Do you think larger development should have higher % of | | marketing cost than small development?]** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Would you have changed the marketing cost as of today\'s market | | sentiment? Please explain why].** | | | | - | +-----------------------------------------------------------------------+ | **[☑ Did you include a rebate to the purchaser in your agency fee? | | Did you consider such an effect on the price of your | | comparables?]** | | | | - - | +-----------------------------------------------------------------------+ | **[☑ Do you think 6% is too optimistic? How realistic is it that | | having a 3% agency fee can be marketable?]** | | | | **[Is the 6% marketing cost reflecting the market when it is | | difficult to sell flats under high interest rate | | environment?]** | | | | **[Do you th