KRISTY KERSWELL
Valuation of Prestige Properties A brief summary of the key tips & tricks involved in valuing prestige properties.
The valuation of prestige property poses a multitude of challenges for valuers as they are a specialised asset class. The most common issues faced include a paucity of sales, wide variances in sales evidence, and the challenge of correctly assessing the factors that influence the value. Whilst prestige property valuation must account for the ‘fundamentals’ that apply to all residential properties, such as land size, internal area, construction and location, there are additional aspects which must be considered by valuers as they can significantly impact value.
AVI ISSUE 2 2021 PAGE 13
Location & Position A purchaser in the prestige property market will often pay a premium or discount for the property’s location, thus making it an important consideration when selecting sales evidence and analysing sales. A premium or discount can be paid for desirable or undesirable positioning on a street or within a suburb, and valuers must take care to only select sales that are within close proximity of the subject. There is often a wide variance between prestige comparable sales, and one of the best ways of narrowing these gaps and accurately defining a range is selecting evidence that is located comparably to the subject.
