University of Technology Sydney

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 2022 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 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 also engages students in learning valuation methods, including the Market Approach - Comparable Transactions Method, Cost Approach, and Income Approach. 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. 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.

Assessments are designed to assure students' proficiency in achieving the learning objectives of this subject. Class exercises 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.

This subject provides an important foundation which underpins the use of valuation theory and practice across several sectors of the property industry.

Subject learning objectives (SLOs)

On successful completion of this subject, students should be able to:

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

Course intended learning outcomes (CILOs)

This subject also contributes to the following Course Intended Learning Outcomes:

  • Effectively apply a variety of communication skills and technologies in professional contexts (C.1)
  • Apply valuation theory and practice in the valuation of property for different purposes (P.1)
  • Analyse data to make investment decisions in various contexts (P.2)
  • Apply economic theory in analysing property markets (P.3)
  • Source, evaluate and use information within defined parameters (R.2)

Contribution to the development of graduate attributes

The term CAPRI is used for the five Design, Architecture and Building faculty graduate attribute categories where:

C = communication and groupwork

A = attitudes and values

P = practical and professional

R = research and critique

I = innovation and creativity.

Course intended learning outcomes (CILOs) are linked to these categories using codes (e.g. C-1, A-3, P-4, etc.).

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 (Canvas) 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 hypothetical and actual scenarios.

Content (topics)

Topics covered in this subject include:

  • Purpose of Valuation
  • Valuation Standards
  • Estates in Land
  • Valuation Reports
  • Direct Comparison
  • Cost Approach
  • Income Approach - Capitalisation
  • Income Approach - Discounted Cashflow
  • Hypothetical Development
  • Going Concern
  • Hypothetical Development
  • Going Concern Valuations & Review of Valuation Methods
  • Risk & Risk Management

Assessment

Assessment task 1: Residential Valuation Assignment

Objective(s):

This task addresses the following subject learning objectives:

3, 5, 6, 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.):

C.1, P.1, P.2 and P.3

Type: Report
Groupwork: Group, individually assessed
Weight: 20%
Criteria linkages:
Criteria Weight (%) SLOs CILOs
Develop a Comprehensive Valuation Report 25 8 C.1
Research Information required in the body of a report 25 9 P.2
Research property market conditions and transaction 25 3, 5 P.3
Adopted valuation methods and rationale 25 6, 9 P.1
SLOs: subject learning objectives
CILOs: course intended learning outcomes

Assessment task 2: Industrial Warehouse Valuation Assignment

Objective(s):

This task addresses the following subject learning objectives:

3, 5, 6, 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.):

C.1, P.1, P.3 and R.2

Type: Report
Groupwork: Group, group assessed
Weight: 30%
Criteria linkages:
Criteria Weight (%) SLOs CILOs
Develop a Comprehensive Valuation Report 25 8 C.1
Research Information required in the body of a report 25 9 R.2
Research property market conditions and transaction 25 3, 5 P.3
Adopted valuation methods and rationale 25 6, 9 P.1
SLOs: subject learning objectives
CILOs: course intended learning outcomes

Assessment task 3: 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

Type: Examination
Groupwork: Individual
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 P.1
SLOs: subject learning objectives
CILOs: course intended learning outcomes

Minimum requirements

The DAB attendance policy requires students to attend no less than 80% of formal teaching sessions (lectures and tutorials) for each class they are enrolled in to remain eligible for assessment.

Required texts

See recommended text

Recommended texts

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

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

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

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

5. 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.

6. International Valuation Standards (IVS)

https://www.api.org.au/sites/default/files/uploaded-content/website-content/ivs_complete_black_line.pdf

Approved educational use by P. Western, API committee member on IVS Council

7. Reports, Content and Compilation – Business Focus 2

http://anzvps.api.org.au/14-3-business-focus.php

Approved educational use by Danielle Jones, Accreditation and Facilitation Manager API

Dr Rachel Baird, General Manager, Professional Development and Membership

8. Parker, D (2021) Principles & Practice of Property Valuation in Australia – Routlege- Taylor & Francis Group

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