Table:
|  |  | Level 1 | Level 2 | Level 3 | Total |
| --- | --- | --- | --- | --- | --- |
|  | Notes | $'000 | $'000 | $'000 | $'000 |
| At 30 June 2019 |  |  |  |  |  |
| Assets held for sale | 10.2 | - | 1,107 | - | 1,107 |
| Leasehold investment properties | 10.4 | - | - | 215,279 | 215,279 |
| Freehold investment properties | 10.4 | - | - | 1,874,698 | 1,874,698 |
|  |  | - | 1,107 | 2,089,977 | 2,091,084 |
| At 30 June 2018 |  |  |  |  |  |
| Assets held for sale | 10.2 | - | 5,713 | - | 5,713 |
| Leasehold investment properties | 10.4 | - | - | 207,664 | 207,664 |
| Freehold investment properties | 10.4 | - |  | 1,377,924 | 1,377,924 |
Paragraphs:
10.8. Non-financial assets fair value measurement
The Group has classified its non-financial assets held at fair value into the three levels prescribed in note 9.8 to provide an indication about the reliability of inputs used to determine fair value.
Recognised fair value measurements
The Group’s policy is to recognise transfers into and out of fair value hierarchy levels at the end of the reporting period. There were no transfers between levels 1 and 2 for recurring fair value measurements during the year. During the year ended 30 June 2019 the Group transferred $2.1m from level 3 to level 2 following the reclassification of assets from freehold investment properties to assets held for sale, and $5.7m from level 2 to level 3 following the reclassification of assets from assets held for sale to freehold investment properties, as detailed in note 10.2.
In the prior year ended 30 June 2018 the Group transferred $4.4m from level 3 to level 2 following the reclassification of an asset from freehold investment properties to assets held for sale.
Fair value measurements using significant observable inputs (level 2)
The fair value of assets held for sale is determined using valuation techniques which maximise the use of observable market data. For the years ended 30 June 2019 and 30 June 2018, the Group has valued assets classified as held for sale at the contractually agreed sales price less estimated cost of sale or other observable evidence of market value.
Fair value measurements using significant unobservable inputs (level 3)
Valuation techniques used to determine level 3 fair values and valuation process Investment properties, principally storage buildings, are held for rental to customers requiring selfstorage facilities and are carried at fair value. Changes in fair values are presented in profit or loss as fair value adjustments.
Fair values are determined by a combination of independent valuations and Director valuations. The independent valuations are performed by an accredited independent valuer. Investment properties are independently valued on a rotational basis every three years unless the underlying financing requires a more frequent valuation cycle. For properties subject to an independent valuation report the Directors verify all major inputs to the valuation and review the results with the independent valuer. The Director valuations are completed by the NSH Group Board. The valuations are determined using the same techniques and similar estimates to those applied by the independent valuer.
The Group obtains the majority of its external independent valuations at each financial year end. The Group’s policy is to maintain the valuation of the investment property valued in the preceding year at external valuation, unless there is an indication of a significant change to the property’s valuation inputs.
Question:
How has the group valued the assets classified as held for sale in 2018 and 2019?
Answer: classified as held for sale at the contractually agreed sales price less estimated cost of sale or other observable evidence of market value.