1. Land cost: $3090 per square metre
This component includes the costs of land purchase, land expropriation, demolition compensation and related procedures. Land prices are higher in the current land market, so land costs are usually larger than total costs. For example, if the land price is $4 million/acre, with a volume rate of 2. 0, the cost of land per square metre is $3090, or 40 per cent of the total cost. For every 1 million additional acres, the cost is approximately $770/m2。
2. Construction installation cost: $2,000 per square metre
This cost includes costs such as construction and installation of equipment and is an essential part of real estate development. The cost of building installation may vary from building type to area. For example, the cost of building installation in high-rise buildings is usually higher at $2,000 per square metre, or 26 per cent of the total cost。
3. Supplementary costs: $400 per square metre
The cost refers to the cost of construction of municipal support facilities such as water, electricity, gas, heat, communications, etc., usually at a fee per square metre. And the costs of roads, greening, weak electricity, rain-contaminated pipes, etc。
4. Administrative utility costs: $500 per square metre
The fee refers to various taxes and administrative services charged by the government sector, such as urban infrastructure packages, education surcharges, etc. 6 per cent of total cost。
5. Land use tax: $220 per square metre
Land use tax is levied on land users on the basis of a certain amount per square metre per year. 9 yuan/m2*50/2. 0=220/m2, or 3% of total cost。
Tax: $880 per square metre
This cost includes taxes on value added tax, turnover tax, urban construction maintenance tax, etc., and is an important cost in real estate development. The sale price (at $8,000)* 11% = $880/m2, or 12% of the total cost。
Marketing costs: $200 per square metre
The costs include advertising, sales agents, etc., and are mainly used to promote real estate projects. The sales price (at $8,000)* 2. 5 per cent = $200/m2, or 3 per cent of the total cost。
8. Financial costs: $320 per square metre
This cost, including interest on loans, fees, etc., is an unavoidable cost in real estate development. Item (2-5, 6, 8)*10 per cent = $320/m2, or 4 per cent of total cost。
9. Unforeseen: $100 per square metre
The cost refers to unknown costs that may have arisen during the development process, such as compensation for engineering accidents. $100/m2, 1 per cent of total cost。
Taken together, the cost of land and construction installation is the largest source of costs in real estate development, but other costs also account for a significant proportion。
