MKH Berhad 231 45. FAIR VALUE HIERARCHY (CONT’D) Fair value reconciliation of investment properties measured at level 3 are as follows: Commercial Office and Education properties shoplot centre Total The Group RM RM RM RM 2021 Investment properties At beginning of year 275,181,000 29,075,000 45,000,000 349,256,000 Changes in fair values (5,000,000) (15,000) - (5,015,000) At end of year 270,181,000 29,060,000 45,000,000 344,241,000 2020 Investment properties At beginning of year 237,500,000 29,940,000 45,000,000 312,440,000 Transfer from inventories 54,161,808 - - 54,161,808 Fair value losses from transfer of inventories to investment properties (5,180,808) - - (5,180,808) Changes in fair values (11,300,000) (865,000) - (12,165,000) At end of year 275,181,000 29,075,000 45,000,000 349,256,000 Description of valuation techniques used and key unobservable inputs to valuation on investment properties measured at level 3 are as follows: 2021 Property Valuation Significant unobservable category technique inputs Range Investment properties Commercial properties Comparison method Market value per square feet RM240 Commercial properties Comparison method Market value per square feet RM120 - RM1,650 Commercial properties Cost method Construction price per square RM55 - RM120 feet Commercial properties Investment method Estimated average rental rate RM2.94 - RM3.19 per square feet per month Estimated outgoings per RM1.14 - RM1.47 square feet per month Term yield 5.75% Sinking fund 3% Void rate 5% - 10% Lease term 68 - 81 years Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2021
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