Property Valuation - Peter Wyatt

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Résumé :

Preface xi

SECTION A VALUATION PRINCIPLES 1

1 Property Rights and Property Value 3

1.1 Property rights 3

1.1.1 Tenure 4

1.1.2 Property rights in England 6

1.2 Property value 8

1.2.1 Extent of property rights 9

1.2.2 Security of property rights 11

1.2.3 Physical and geographical characteristics 13

1.3 Property valuation 13

1.3.1 Market transactions 14

1.3.2 Investment decisions 15

1.3.3 Compensation 15

1.3.4 Land and property taxation 16

1.3.5 Accounting, lending and insurance 16

Note 18

References 18

2 The Economics of Property Value 19

2.1 Introduction 19

2.2 Land as a resource 19

2.3 Supply and demand, markets and equilibrium price determination 21

2.4 The property market and price determination 22

2.4.1 The property market 22

2.4.2 Price determination in the land market 23

2.4.3 Price determination in the property (land and buildings)

market 26

2.5 Location and land use 29

2.6 Economics of property development 36

2.6.1 Type and density of development 36

2.6.2 Timing of development 38

2.7 Non-market

concepts of value 40

Notes 42

References 42

3 Property Markets 45

3.1 Introduction 45

3.2 Property markets 46

3.2.1 Occupier market 47

3.2.2 Investment market 59

3.2.3 Development market 63

3.3 Property markets interaction 69

Note 72

References 72

4 Valuation Mathematics 75

4.1 Introduction 75

4.2 The time value of money 76

4.3 Single-sum

investments 77

4.4 Multi-period

investments 78

4.4.1 Level annuities 78

4.4.2 From a level annuity to a growth annuity 82

4.5 Timing of receipts 83

4.6 Yields 84

4.7 Rates of return 85

Notes 90

References 91

5 Valuation Process and Governance 101

5.1 Valuation process 101

5.1.1 Confirm instruction and agree terms of engagement 101

5.1.2 Inspect the property 103

5.1.3 Gather and analyse comparable evidence 104

5.1.4 Establish basis of value 106

5.1.5 Make assumptions and special assumptions as

appropriate 109

5.1.6 Select valuation approach(es) and method(s) and

undertake the valuation 110

5.1.7 Produce a valuation report 110

5.2 Valuation governance 112

5.2.1 Standards of conduct 113

5.2.2 Valuation process standards 115

5.2.3 International valuation standards 115

5.2.4 National valuation standards 116

5.3 Valuation systems 117

5.3.1 Information systems 119

5.3.2 Valuation capacity 121

5.3.3 Professional valuers associations 122

5.4 Conclusion 125

Notes 127

References 127

SECTION B VALUATION APPROACHES AND METHODS 129

6 Market Approach 131

6.1 Introduction 131

6.2 The comparison method 132

6.2.1 Collect comparable evidence of market transactions 132

6.2.2 Identification of value-significant

characteristics 134

6.2.3 Adjustment of value-significant

characteristics 139

6.3 Hedonic regression method 150

6.3.1 Simple linear regression 151

6.3.2 Multiple linear regression 156

Notes 168

References 168

7 Income Approach 173

7.1 Introduction 173

7.2 Income capitalisation method 174

7.2.1 Perpetual annuities (freeholds) 175

7.2.2 Annuities with a term certain (leaseholds) 179

7.3 Discounted cash-flow method 183

7.3.1 A discounted Cash-Flow valuation model 184

7.3.2 Perpetual annuities 190

Biographie:

Peter Wyatt is a Chartered Valuation Surveyor and Professor of Real Estate Appraisal in the Department of Real Estate & Planning at the Henley Business School, University of Reading, UK. He has developed and delivered national and international university programmes at all levels and led national, European, and international real estate research projects. His recent work with UK Government investigated the theory and practice of development viability appraisal in planning policy, and current work with the UN is focusing on the valuation of unregistered land....

Sommaire:
PROPERTY VALUATION

The new edition of the popular 'all-in-one' textbook on the valuation and appraisal of property, offering a more international perspective on valuation practice

Property Valuation provides a comprehensive examination of property valuation principles, methods, issues and applications of the valuation and appraisal of commercial and industrial property across investment, development and occupier markets. With a clear writing style, this easily accessible textbook presents valuation from the client perspective, offering balanced coverage of the theory and practice of single-asset pricing, risk and return issues.

The updated third edition reflects significant developments that have occurred in valuation over the past several years, particularly the expanding internationalisation of the valuation profession and the growing interest in valuation practice in emerging economies. Greater emphasis is placed on international content and context, such as the challenges of real estate asset valuation in countries with developing market economies, to offer a more global view of valuation practice. Throughout this edition, chapters link the most recent academic research to practical applications, incorporate the latest professional guidelines and standards and address land and property taxation, compulsory acquisition of land, the valuation of non-market goods and services and key valuation challenges with a more international perspective.

• Addresses the key challenges faced by valuation professionals in a single, up-to-date volume
• Combines academic coverage of principles with practical coverage of valuation applications
• Incorporates consideration of non-market value, including countries where land is seldom sold yet has social and environmental value
• Contains a wealth of well-developed worked examples and classroom-proven teaching and learning devices
• Includes access to a companion website with supporting material for students and lecturers