Methods for Appraising Commercial Housing Prices according to Circular 145

23:34, 10/07/2024

This is the notable content stipulated in Circular 145/2016/TT-BTC promulgating Vietnam Valuation Standards No. 11.

Commercial housing refers to housing invested in for both residential and business purposes, available for rent or lease-purchase at prices assessed through the following methods:

- Direct capitalization method;- Discounted cash flow method;- Comparison method;- Replacement cost method or reproduction cost method.

Additionally, Circular 145/2016/TT-BTC also stipulates the specific cases for applying the assessment methods as follows:

- The direct capitalization method and the discounted cash flow method are commonly used to determine the value of commercial real estate.- The comparison method is often applied to commercial housing located in densely populated, bustling business areas where appraisers can gather information about similar real estate in the market.- The replacement cost method or the reproduction cost method is typically applied in combination with the comparison method. Specifically: For vacant land, appraisers use the comparison method to determine the value of land use rights; for buildings on the land that are residential houses, appraisers use the replacement cost method or the reproduction cost method to determine the value.

For more details, please refer to Circular 145/2016/TT-BTC, effective from January 1, 2017.

- Thanh Lam -

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