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 2025 is available in the Archives.
Credit points: 6 cp
Subject level:
Undergraduate
Result type: Grade and marksRequisite(s): 16219 Quantitative Analysis for Property
These requisites may not apply to students in certain courses. 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. |
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
| Intent: | This assessment task comprises a property valuation report of a freestanding residential dwelling. It is designed to assess the application of valuation theory and valuation methods through the analysis of market evidence and the determination of value. | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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.): .1, .1, .2 and .3 | ||||||||||||||||||||
| Type: | Report | ||||||||||||||||||||
| Groupwork: | Group, individually assessed | ||||||||||||||||||||
| Weight: | 20% | ||||||||||||||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Assessment task 2: Strata Title Office Valuation Assignment
| Intent: | This assessment task comprises a property valuation report of an industrial property. It is designed to assess the application of valuation theory and valuation methods through the analysis of market evidence and the determination of value. | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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.): .1, .1, .2 and .3 | ||||||||||||||||||||
| Type: | Report | ||||||||||||||||||||
| Groupwork: | Group, group assessed | ||||||||||||||||||||
| Weight: | 30% | ||||||||||||||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Assessment task 3: Exam
| Intent: | An exam which assesses all the learning undertaken during the course of this subject. The questions are predominantly applied scenario-based questions which assess students learning in applying the methods of valuation and the underpinning theory of value. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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.): .1 | ||||||||||||
| Type: | Examination | ||||||||||||
| Groupwork: | Individual | ||||||||||||
| Weight: | 50% | ||||||||||||
| Criteria linkages: |
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
A calculator is required for this subject