The Valuation and Property Services Department (Jabatan Penilaian dan Perkhidmatan Harta) will value the property to determine the market value of the land.
The premium is calculated differently in each state and the rules applicable in Selangor is under 7 of the Selangor Land Rules 2003 and Selangor Quarry Rules 2003 entitled “Premium” which is calculated as follow (excluding the price of the building constructed on the Land) :-
Premium = 1/ 4 X 1 / 100 X Market Value of the Land X Number of Years of Renewal X Land Area (in Square Feet)
