Property Valuation Assignment Task-
Students are to select a main street retail strip of their choice within the Sydney metropolitan area. The Sydney CBD is excluded from your choice of locations. You will prepare a property location and valuation report.
Part A: Students will submit a preliminary overview of the location chosen to undertake this assignment. This overview will comprise the location, a general description of the retail street selected, any trends noted relating to use, vacancies and should be no more than one page in length maximum. Ensure your name is included on your work.
Part B:
Section 1 - Students will prepare a report describing a main street retail location in which they will note the movement in values and rent covering the period January 2013 to March 2016. This trend analysis is to be prepared at either 3 or 6 monthly intervals of which a trend is required for rentals, sales and yields of property in the location over the study period.
The report should be presented in the following format:
-Description of the suburb and market segment (retail sector) being monitored, including the visual presentation.
-Sources of information including methods used to gather the information
-Addresses, sale prices, rents and yields of properties monitored each quarter
-Discussion on the methods used to analyse the information
-Reference to selling and leasing agents databases
-Macro & micro considerations that have impacted on the location covered.
-Conclusions / Predictions for that segment over the next 6-12 months, with rationale.
The data required may be obtained from RP Data and other sources students consider appropriate. The best evidence for tracking movements is sales and resales of the same property. Due to the relative short period of your analyses, these will be infrequent so comparable property will need to be used. Students will note the challenge in obtaining rental information, being an important
part of the analysis.
In some instances students will be required to analyse data from adjoining retail locations and make adjustments to information available in periods where there is an absence of data in their retail location. It is important where inputs are being adopted in the absence of data that a clear rationale is provided for the inputs adopted.
It is recommended that students use a number of graphs / displays presenting their findings which should be accompanied with commentary and cover movements in values as $/m2 of sale prices, rentals and yields. It is highly recommended, but not compulsory that you select a retail strip with 50 to 60 shops for there to be sufficient sales to generate your analysis.
Section 2 - Once Section 1 is complete and a full analysis undertaken, students are to value one property within the location in which their analyses has been undertaken and will value that property using the direct comparison (including a rate / m2) and capitalization methods of valuation. (Students are not to approach owners or tenants or attempt to enter the property in undertaking this exercise).
The valuation report of the property to be valued will include a full analysis of the property and will include all the headings and information included in a market valuation report as discussed during lectures. The valuation report will cover the following points:
-Valuation report headings
-Analysis of the evidence from Part 1 of this assignment used to value the subject property selected.
-Bases, adjustments and rationale of the evidence and its application to the property being valued.
-A full explanation of the method(s) of valuation used which should include direct comparison and the capitalization methods of valuation.
-The strengths and weaknesses of the methods used, basis of assumptions, as well as a discussion for adjustments for the evidence
analysed and its application to the property being valued.
-A reference list of all sources used to compile the report.