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Article: Applying the DCF model in China's transitional market. (discount cash flow)
- Article from:
- Appraisal Journal
- Article date:
- January 1, 1998
- Author:
CopyrightCOPYRIGHT 1998 The Appraisal Institute. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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With a transaction volume of over 400 pieces of land (or more precisely land use rights) between 1988-1993 and an additional 400 pieces between 1994-1995, Shanghai is, beyond doubt, a very active land market even though it may not be operating on a basis similar to a pure capitalist market mechanism.(1) However, because most transactions are conducted through negotiation, it is doubtful whether a developer or an investor can actually obtain reliable market data with which to assess the value of land that they own or are planning to purchase. To prevent losing an important source of revenue for the state, the local authority should reconsider whether the method of assessing ...