MKH Annual Report 2020

237 MKH BERHAD 45. FAIR VALUE HIERARCHY (CONT’D) Description of valuation techniques used and key unobservable inputs to valuation on investment properties measured at level 3 are as follows: Property category Valuation technique Significant unobservable inputs Range Investment properties Commercial properties Comparison method Market value per square  feet RM240 Commercial properties Comparison method Market value per square  feet RM70 – RM1,650 Commercial properties Cost method Construction price per  square feet RM55 – RM120 Commercial properties Investment method Estimated average rental  rate per square feet per month RM2.94 – RM3.19 Estimated outgoings per  square feet per month RM1.14 - RM1.47 Term yield 5.75% Sinking fund 3% Void rate 7% Car park Comparison method Estimated price per  parking bay RM17,000 – RM30,000 Office and shoplot Investment method Estimated price per  parking bay RM17,000 Estimated outgoings per  square feet per month RM0.25 Term yield 6% Education centre Investment method Estimated average rental  rate per square feet per month RM0.85 – RM1.25 Estimated outgoings per  square feet per month RM0.05 - RM0.053 Term yield 5% Reversionary yield 6.2% Void rate 10% Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2020