LAND & BUILDING VALUATION
VALUE IS SHAPED BY
LOCATION.
USE.
CONDITION.
Understanding the property beyond its physical attributes.
A STRUCTURED APPROACH TO PROPERTY VALUATION
Pensar Valuation considers the physical, legal, economic and market characteristics relevant to the property and purpose of the engagement.
Depending on the assignment, analysis may consider factors such as location, land use, built-up area, construction characteristics, condition, development potential, surrounding infrastructure, market evidence and other relevant property-specific considerations.
Land and building valuation may support transactions, secured lending, financial reporting, regulatory requirements, corporate decisions and other valuation needs.
WHY PROPERTY VALUATION MATTERS
When Is Land & Building Valuation Required?
Land and building valuation may be required in a range of transaction, financing, reporting and regulatory situations. The purpose of the engagement determines the scope of assessment, valuation date and relevant analysis.
PROPERTY TRANSACTIONS
Valuation support for acquisitions, disposals, transfers and other property-related transactions.
REGULATORY & TAX REQUIREMENTS
Supporting valuation requirements arising under applicable regulatory, tax and statutory frameworks.
SECURED LENDING
Supporting lenders in assessing property value for financing, security and related credit requirements.
INVESTMENT & DEVELOPMENT DECISIONS
Providing an analytical basis for assessing property investments, development opportunities and related decisions.
FINANCIAL REPORTING
Valuation support for applicable fair value measurement, financial reporting and accounting requirements.
CORPORATE & OWNERSHIP MATTERS
Supporting restructuring, ownership changes, settlement and other corporate requirements involving land and buildings.
Our Approach.
Our Land & Building Valuation Process
Each property valuation engagement is shaped by the purpose of the assignment, the characteristics of the property and the information available. Our approach combines property-specific assessment, market analysis and professional judgement to develop a reasoned opinion of value.
2
1
3
4
5
DEFINE
ANALYSE
ASSESS
CONCLUDE
REPORT
Understand the requirement
Review the property
Evaluate market evidence
Apply appropriate analysis
Document the conclusion
Establish the valuation purpose, relevant valuation date, property details, scope and specific requirements of the engagement.
Consider relevant physical, legal and locational characteristics, including land use, built-up area, construction and condition.
Review relevant market conditions, comparable properties, location factors, development potential and other applicable evidence.
Consider appropriate valuation approaches and relevant assumptions based on the property, purpose and available information.
Present the relevant analysis, assumptions and valuation conclusion in an appropriate report format.
VALUATION METHODOLOGIES
Approaches to Land & Building Valuation
The appropriate valuation approach depends on the property, its characteristics, the purpose of the engagement, available market evidence and other relevant circumstances. Different approaches may be considered where appropriate to the assignment.
MARKET APPROACH
Assessing value through market evidence
Considers relevant transactions, comparable properties, location and other market indicators where suitable evidence is available.
INCOME APPROACH
Assessing value through economic benefits
May be relevant where the property generates or is expected to generate income, considering factors such as rental income, operating characteristics and applicable assumptions.
COST / ASSET APPROACH
Assessing value with reference to underlying components
Considers the land and relevant building or improvement characteristics, including applicable costs, depreciation and other relevant adjustments.
The appropriate approach depends on the property and purpose of the valuation.
The appropriate approach is determined based on the purpose of the valuation, the characteristics of the property and the information available.
KEY VALUE DRIVERS
Factors That Influence Land & Building Value
The value of land and buildings can be influenced by a combination of physical, legal, locational and market factors. The relevance of each factor depends on the property, its use and the purpose of the valuation.
01
LOCATION & ACCESSIBILITY
Location, connectivity, surrounding infrastructure, accessibility and the characteristics of the surrounding area.
03
PROPERTY CHARACTERISTICS
Land area, built-up area, layout, construction characteristics, age, condition and quality of improvements.
05
INCOME & OCCUPANCY
Where relevant, rental income, occupancy, lease terms, operating characteristics and other income-related considerations.
02
LAND USE & DEVELOPMENT POTENTIAL
Permitted use, development potential, zoning considerations and the way the property can be utilised.
04
MARKET CONDITIONS
Local market trends, demand and supply, comparable transactions, prevailing values and broader economic conditions.
06
LEGAL & TITLE CONSIDERATIONS
Relevant ownership, title, encumbrances, approvals, restrictions and other legal or regulatory considerations based on the assignment.
Property value is shaped by multiple factors.
The relevant considerations are assessed in the context of the property, valuation purpose and information available.
VALUATION DELIVERABLES
What a Land & Building Valuation Report Covers
A land and building valuation report sets out the relevant property information, scope, analysis and valuation conclusion in a structured format appropriate to the purpose of the engagement.
01
PROPERTY & SCOPE
Understanding the subject property
Property identification, relevant characteristics, valuation purpose, valuation date and scope of the engagement.
03
VALUATION ANALYSIS
Applying the appropriate approach
Relevant market evidence, assumptions, calculations and analysis appropriate to the property and purpose of the valuation.
02
PROPERTY ASSESSMENT
Documenting relevant considerations
Relevant physical, locational, legal and market observations considered during the assignment.
04
CONCLUSION & REPORT
Presenting the valuation conclusion
A structured presentation of the methodology, key assumptions, analysis and resulting opinion of value.
