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16234 Property Valuation

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2016 is available in the Archives.

UTS: Design, Architecture and Building: School of the Built Environment
Credit points: 6 cp

Subject level:

Undergraduate

Result type: Grade and marks

There are course requisites for this subject. See access conditions.

Description

This subject is an in-depth study of the role, functions and obligations of the valuation profession and purposes for which valuations are undertaken. It explores the concepts of value and the practical application of the role of valuations in the market place. It further defines the rationale, tolerances and codification of value for each of the purposes for which it is used and further distinguishes the term value from its common language meaning to its specificity of use within the valuation profession. This subject is designed to provide the foundations for a career as a valuer and property professional.

Following the review of the valuation methods and purposes, each method is covered with students critically engaging in-depth analyses and application commencing with the direct comparison method, exploring the attributes of value. The second method, the summation or cost method is used by students to examine some of the specialist uses of property. The income or capitalisation method is the foundation of investment analyses which students demonstrate the use of this method in their major assignment. The hypothetical development and residual methods of valuation are then used by students to assess existing and highest and best use of land. The subject further introduces partial interests in land and the principles of financial theory and the impact of the time cost of money within the various method of valuation described above. This subject provides an important foundation which underpins the use of valuation theory and practice across several sectors of the property industry.

Subject objectives

On successful completion of this subject students will have achieved the following:

1. P-1: Define the use, purposes and focus of valuations and valuation theory
2. P-1: Identify and select the most appropriate valuation methods available to value property
3. R-2: Identify, investigate and analyse market evidence required to carry out valuations
4. P-3: Determine the highest and best use of land and identify changing uses of land
5. C-1: Prepare a market overview and report the value of property
6. P-1: Apply the methods of valuation to carryout valuations of various classes of property
7. R-2: Identify the various purposes for which valuations are undertaken and client objectives
8. C-1: Draft valuation instructions and valuation reports in accordance with industry standards
9. P-1: Carry out valuations of residential, retail, commercial and industrial use property
10. C-1: Define and explain the valuation of partial interests in real estate.

This subject also contributes to the faculty's five CAPRI graduate attribute categories (see 'Graduate Attribute Development') through the following course intended learning outcomes:

  • Ability to effectively apply a variety of communication skills and technologies in professional contexts (C.1)
  • Ability to correctly apply valuation theory and practice in the valuation of property for different purposes (P.1)
  • Ability to apply economic theory in analysing property markets (P.3)
  • Ability to source, evaluate and use information within defined parameters (R.2)

Contribution to the development of graduate attributes

C-1: Apply a variety of communication skills and technologies in professional contexts.

P-1: Apply valuation theory and practice in the valuation of property for different purposes.

P-3: Apply economic theory in analysing property markets.

R-2: Source, evaluate and use information within a defined research context.

Teaching and learning strategies

Delivery will be by weekly sessions and will include lectures on key concepts, presentations by guest lectures on case studies and specialist material. Active learning opportunities will be integrated with each session through group discussion, class workshops, and in-class participation by students and student groups. In addition, some flipped learning strategies have been integrated into the subject learning philosophy, including the use of on-line presentations (UTSOnline) which are to be viewed prior to the first lecture. Some lectures are followed by an online quiz to assess your understanding on the content and its application. In addition, online reference and resource material is provided throughout the semester, and relevant news topics that relate to the subject will also be posted. Students will be engaged through the use of pre-readings, on-line quizzes and hypothetical scenarios which engender problem based learning.

During lectures students will work together and learn collaboratively in small groups solving problems that directly relate to the subject content covered during the lectures. This approach will assist students in applying and demonstrating their learning through cases involving hypotehtical and actual scenarios.

Content

Topics covered in this subject include:

  • Value, valuation methods, purposes & application of value;
  • Sales & Leasing Data and Evidence;
  • Direct Comparison Method & Theory;
  • Summation & Capitalisation & Theory;
  • Capitalisation & Hypothetical Development;
  • Hypothetical Development & Theory;
  • Financial theory & fractional interests in property;
  • Valuation of Going Concerns & Property;

Assessment

Assessment task 1: Market Property Assignment

Objective(s):

This task addresses the following subject learning objectives:

1, 2, 3, 4, 5 and 6

This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.):

C.1, P.3 and R.2

Weight: 50%
Criteria linkages:
Criteria Weight (%) SLOs CILOs
Apply valuation theory to practice 20 1 P.3
Select and apply valuation methods 40 2 C.1
Research property information and translate the impact on value 40 3, 4, 5, 6 R.2
SLOs: subject learning objectives
CILOs: course intended learning outcomes

Assessment task 2: Exam

Objective(s):

This task addresses the following subject learning objectives:

1, 10, 2, 3, 4, 5, 6, 7, 8 and 9

This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.):

P.1

Weight: 50%
Criteria linkages:
Criteria Weight (%) SLOs CILOs
Demonstrate knowledge of and apply valuation theory 50 1, 2, 3, 4, 5 P.1
Apply valuation methods 50 10, 6, 7, 8, 9
SLOs: subject learning objectives
CILOs: course intended learning outcomes

Required texts

See recommended text

Recommended texts

Whipple, RTM. (2006) Property Valuation and Analysis 2nd Ed - Law Book Company.

Mangioni, V. (2016) Land Tax in Australia - Fiscal Reform of Sub-national Government

Australian Property Institute (2007), The valuation of real estate, Institute of Appraisers 2007.

Baum. A, Mackmin. D, & Nunnington. N, (2011) The income approach to property valuation

Rost & Collins. 1996 Land Valuation & Compensation in Australia - Published by Australian Property Institute

The above books may be ordered through the Coop Bookstore. A number of readings are located online in the relevant folders for a number of the lectures.

References

Australian Property Institute - Property Journal

Appraisal Institute - Appraisal Journal

Legal Website - austlii.edu.au

Other resources

Sharp EL 735 or 738 calculator is required for this subject