Annual Report 2019

FAR EAST CONSORTIUM INTERNATIONAL LIMITED 216 For the year ended 31 March 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 15. INVESTMENT PROPERTIES (continued) The fair value measurement of Group’s major investment properties and information about the fair value hierarchy at 31 March 2019 and 31 March 2018 are as follows: The key inputs used in valuing the investment properties under the income capitalisation approach were the capitalisation rates used and market rent. A slight increase in the capitalisation rate used would result in a significant decrease in the fair value of the investment properties, and vice versa. Details of the significant unobservable input are as follows: Class of property Carrying amount HK$’000 2019 2018 Income capitalisation approach Capitalisation rates Market rent Office portion in HK 508,200 472,900 2% to 2.375% per annum (2018: 2.25% to 2.5% per annum) HK$29 to HK$41.3 per square feet (2018: HK$28.5 to HK$40.4 per square feet) Retail portion in HK 1,300,174 1,259,543 2.75% to 3.5% per annum (2018: 2.75% to 3.5% per annum) HK$14 to HK$243.5 per square feet (2018: HK$12.5 to HK$240 per square feet) Retail portion in the PRC 1,433,250 1,024,058 4.5% to 6.5% per annum (2018: 5% to 6.5% per annum) Renminbi (“RMB”) 37 to RMB266 per square metre (2018: RMB42 to RMB234 per square metre) Office portion in the PRC 60,840 64,692 4.5% per annum (2018: 4.5% per annum) RMB56 per square metre (2018: RMB54 per square metre) Retail portion in Australia 270,049 180,808 4.5% to 12.5% per annum (2018: 4.75% to 10.0% per annum) Australian Dollar (“A$”) A$711 to A$2,200 per square metre (2018: A$674 to A$2,273 per square metre) Direct comparison approach Market unit rate Car park in the PRC 86,580 73,750 N/A RMB262,000 per car park (2018: RMB197,000 per car park) Residential in the PRC 485,550 – N/A RMB14,015 per square metre Retail portion in Singapore 148,803 153,686 N/A Singapore Dollar (“S$”) 40,031 per square metre (2018: S$40,031 per square metre) Residential in Singapore 1,132,950 – N/A S$42,871 per square metre 5,426,396 3,229,437 There has been no change to the valuation technique during the year. In estimating the fair value of the properties, the highest and best use of the properties is their current use.