Real value valuation for property in the 21st century? - a comparison of conventional and real value models
An old idea transforms into a simplified dynamic application for valuing investment property in the 21st Century. This paper presents a new all risks real yield (ARRY) valuation model for the 21st Century valuer’s use. It requires a paradigm shift in the minds of valuers from 20th Century thinking in nominal value terms to thinking in real value terms. This affects the methodology, valuation models and techniques required to value income producing property. It is compared to and distinguished from the conventional all risks yield (ARY) model used in the UK and previous real value valuation models developed in the UK and USA in the 1970-80’s. This ARRY model is an advance on generic real value valuation models of the 1990’s. A sales analysis and common valuation examples compare the ARRY model with conventional valuation methodology.... [Show full abstract]
Keywordsproperty valuation; valuation modelling; All Risks Real Yield (ARRY); conventional and traditional valuation theory; discounted cash flow; dynamic capitalisation; income valuation models; investment real estate; real value valuation
Copyright © The Author.
CitationJefferies, R. (2010). Real value valuation for property in the 21st century? - a comparison of conventional and real value models. Pacific Rim Property Research Journal, 16(4), 435-457.
Showing items related by title, author, creator and subject.
Kerr, Geoffrey N. (Lincoln University and University of Canterbury.Centre for Resource Management., 1988-07)There is a demand for non-market valuation information in New Zealand which is likely to increase with current "more-market" policies. Information needs range from identifying non-market values, through methods for ...
Bateman, Ian J.; Day, Brett H.; Georgiou, Stavros; Lake, Iain (Lincoln University. Commerce Division., 2006-09)We review the literature regarding the aggregation of benefit value estimates for non-market goods. Two case studies are presented through which we develop an approach to aggregation which applies the spatial analytic ...
Andersen, Maiki Dita; Kerr, Geoffrey N.; Lambert, Simon J. (New Zealand Agricultural and Resource Economics Society, 2012-08)The application of stated preference non-market valuation approaches in settings where there are strong cultural differences in environmental perspectives potentially misrepresent strengths of preferences for different ...