17771 Valuation Methodology

Description

This is a core subject in the Master of Property Development program (valuation sub-major). This subject focuses on the role, functions and obligations of valuation profession and purpose for which valuations are undertaken. It explores the concepts of different types of value, different interests in property, general valuation principles and case law. This subject will also engage students in learning valuation methods, including the Market Approach - Comparable Transactions Method, Cost Approach and Income Approach. The subject prepares the students to be able to apply the different methods of valuation to different property types. Subsumed in the methods of valuation are the concepts of identifying risk and accounting for risk. An overview of valuation reporting standards is also discussed. A basic knowledge of a spreadsheet program such as Microsoft Excel is assumed.

Assessment is designed to assure students' proficiency in achieving the learning objectives of this subject. A quiz will test students’ understanding of basic concepts, valuation theory and valuation methods. Students are required to conduct a group work to value a property using the learned principles. The final examination tests students' understanding of valuer’s responsibility, valuation methods and risks involved in the valuation.