The Ministry of Finance has new regulations on real estate valuation.

According to the Circular, this Vietnamese Valuation Standard stipulates and guides the valuation of real estate when valuation is conducted in accordance with the law on pricing. This Vietnamese Valuation Standard does not apply to land valuation in accordance with the law on land.

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

The valuation methods used in real estate valuation include valuation methods belonging to the approaches or combinations of approaches specified above. The residual 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 issued new regulations on real estate valuation. (Photo: ST)

Based on the characteristics of the property to be appraised, the purpose of the appraisal, the time of appraisal, the basis of the appraisal value, and the information and data about the property to be appraised that can be collected, an appropriate approach and appraisal method should be selected.

According to this Circular, the best and most efficient use of real estate is determined on several grounds, such as the characteristics of the property being appraised.

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

Circular providing guidance on analyzing the best and most effective use of the Vietnamese Valuation Standards regarding the collection and analysis of information on appraised assets.

The total revenue generated from real estate development is determined based on surveys and the collection of information on transfer prices, rental prices, and other revenue-generating factors (such as sales time, start date of sales, sales rate, occupancy rate) of at least three properties with similar characteristics to the proposed investment project in the area where the appraised property is located or in a potentially profitable area.

Equivalent technical and social infrastructure conditions should take into account the trends and fluctuations in transfer prices, rental prices, and other factors that generate revenue for the planned future investment and construction project. When determining total development revenue, it is necessary to analyze and evaluate the feasibility of implementing, completing, and putting the project into operation and exploitation according to the committed investment schedule and current real estate regulations.

Determining the level of fluctuation in transfer prices, rental prices, and other revenue-generating factors is based on market research results, surveys, or published data from statistical agencies or real estate market management agencies, ensuring consistency with the fluctuations 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