Items of development cost | Detailed composition | Remarks | |
Land cost | Remuneration for assignment of the right to the use of land, compensation fees of the land requisition or removal, relocation compensation fees, stipulated fees, etc. | Accounting for 20% to 30% of the gross investment. The proportion varies due to different land type, plot ratio and land use type. | |
Engineering cost in construction stage | Equipment procurement cost; construction and installation cost, supervision cost, etc. | Accounting for about half the gross investment. | |
Engineering cost in initial & final stage | Cost of planning, design, feasibility and hydrogeologic survey, cost of “Three connections and one leveling”, cost of infrastructure and supporting facilities construction, etc. | Accounting for 5% to 10% of the gross investment. | |
Other expenses related to development | Management expenses | Wages and welfare expenses, office expenses, labor protection fees, expenses on water and electricity, etc. | Accounting for 5% to 10% of the gross investment. |
Financial charges | Loan interests and other expenses in financing | ||
Selling expenses | Fees for advertising and exhibitions, sales mechanism expenses, etc. | ||
Taxes | Increment tax on land value, deed tax, sales tax; income tax, etc. | ||
Contingencies |
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