Comparing Valuation Methods for Historic Properties in China and the United States

摘要

Relative to ordinary real estate, historic properties lack practicability due to their unique nuances. As a result, they are weak in profitability when the market changes. In addition, the protection of historic properties in China requires general improvement in the quality of the public's recognition. The dual nature of market knowledge and of cultural recognition often leads to a relatively long payback period of investment in historic properties. Under the prerequisite of certain market values and expected income, the longer the payback period is, the lower the capitalization rate will be.