7 Earnings from revaluation of investment real estate
CHF million | 1st half-year | 1st half-year | ||
Higher valuation of yield-producing properties | 15.3 | 21.6 | ||
Higher valuation of investment real estate under construction | 5.3 | 6.5 | ||
Lower valuation of yield-producing properties | –10.6 | –17.8 | ||
Lower valuation of investment real estate under construction | –1.3 | 0.0 | ||
Earnings from revaluation of investment real estate | 8.7 | 10.3 |
CHF 1.8 million of the higher valuation of yield-producing properties relates to residential real estate and CHF 13.5 million to commercial real estate (1st half-year 2016: CHF 11.4 million and CHF 10.2 million, respectively). CHF 10.6 million of the lower valuation of yield-producing properties relates to commercial real estate (1st half-year 2016: CHF –17.8 million).
The average discount rates as at 30 June 2017 for the entire portfolio of yield-producing properties amount to 4.42% (31.12.2016: 4.43%). The average capitalisation rates as at 30 June 2017 amount to 3.93% (31.12.2016: 3.95%).
As in the previous year, Jones Lang LaSalle AG acts as the real estate valuer on a contract basis.