7 Earnings from revaluation of investment real estate
CHF million | 1st half-year | 1st half-year | ||
Higher valuation of yield-producing properties | 13.0 | 15.3 | ||
Higher valuation of investment real estate under construction | 7.2 | 5.3 | ||
Lower valuation of yield-producing properties | –7.3 | –10.6 | ||
Lower valuation of investment real estate under construction | 0.0 | –1.3 | ||
Earnings from revaluation of investment real estate | 12.9 | 8.7 |
CHF 1.1 million of the higher valuation of yield-producing properties relates to residential real estate and CHF 11.9 million to commercial real estate (1st half-year 2017: CHF 1.8 million and CHF 13.5 million, respectively). CHF 7.3 million of the lower valuation of yield-producing properties relates to commercial real estate (1st half-year 2017: CHF –10.6 million).
The average discount rates as at 30 June 2018 for the entire portfolio of yield-producing properties amount to 4.31% (31.12.2017: 4.33%). The average capitalisation rates as at 30 June 2018 amount to 3.82% (31.12.2017: 3.84%).
As in the previous year, Jones Lang LaSalle AG acts as the real estate valuer on a contract basis.