Items of development cost

Detailed composition


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.


Increment tax on land value, deed tax, sales tax; income tax, etc.