Showing papers in "Journal of Property Valuation and Investment in 1992"
TL;DR: The paper concludes that the neural network model is an easy‐to‐use, black‐box alternative to the MRA model and its application to the valuation of residential apartments.
Abstract: Introduces the theory of artificial neural networks (ANN). Discusses its application to the valuation of residential apartments. Compares the performance of the back propagation neural network (BP) model in estimating sale prices of apartments against the traditional multiple regression analysis (MRA) model. Concludes that the neural network model is an easy‐to‐use, black‐box alternative to the MRA model.
131 citations
TL;DR: In this article, a risk management device for the producer group is through research so that the development product fits as closely as possible the needs of the tenant or purchaser, the values of the politically active collective consumers and the land use or the ethic of the society.
Abstract: Notes the real estate development process involves three major groups – a consumer group, a production group and a public infrastructure group. Comments that a major limitation shared by all groups is that each has a cash cycle enterprise which must remain solvent to survive. Concludes that the best risk management device for the producer group is through research so that the development product fits as closely as possible the needs of the tenant or purchaser, the values of the politically active collective consumers and the land use or the ethic of the society.
78 citations
TL;DR: In this article, the basic principles of property investment are discussed and an explicit valuation procedure which can be used at any level ranging from a single property to the aggregate market may be constructed.
Abstract: Starts from the basic principles of property investment and shows that the initial yield conceals estimates of a risk premium, expected income growth and expected depreciation. Suggests that an explicit valuation procedure which can be used at any level ranging from a single property to the aggregate market may be constructed. Concludes that the surveying profession is under threat from those able to meet the growing demand for such explicit analyses.
40 citations
TL;DR: In this article, the issues confronting the appraisal industry in the USA at the original date of publication (1986) were discussed and an observable lack of effort by relevant professional appraisal groups in the US to provide a continuous and vigorous review of methodology to meet the new challenges of the marketplace.
Abstract: Discusses the issues confronting the appraisal industry in the USA at the original date of publication (1986). Notes that there was an observable lack of effort by the relevant professional appraisal groups in the USA to provide a continuous and vigorous review of methodology to meet the new challenges of the market‐place. Suggests that it is apparent that improvements in techniques will occur when social institutions become self‐conscious about the adequacy of the procedure, and where the benefits of improvements are perceived to be greater than the cost of implementation.
11 citations
TL;DR: In this paper, the authors examine the methodological issues that arise in generating standardised transaction data for use in analysing the determinants of retail rents and question the need to test valuation convention against market evidence and the notion of open market value is reassessed.
Abstract: Examines the methodological issues that arise in generating standardised transaction data for use in analysing the determinants of retail rents. Looks at the issues raised by the use of comparative information and the existence of widely accepted conventions for adjusting comparative evidence to allow for the specific physical and legal characteristics of individual properties. Concludes by questioning the need to test valuation convention against market evidence and the notion of open market value is reassessed.
10 citations
TL;DR: In this paper, the authors look at the risk/return characteristics of real estate on the basis of both appraisal and market values and make a series of observations about the role of real-estate in efficient investment portfolios.
Abstract: Looks at the risk/return characteristics of real estate on the basis of both appraisal and market values. Broadens this analysis to include inflation. Makes a series of observations about the role of real estate in efficient investment portfolios. Concludes that as long as direct real estate is valued at appraisal value it is unmistakably a solid inflation hedge.
9 citations
TL;DR: In this paper, the authors examined the valuation difficulties that have arisen as a result of the falls in rental value in the UK property market during the early part of the 1990s and concluded that the growth explicit model is a better and more consistent methodology for the market valuation of investment property.
Abstract: Examines the valuation difficulties that have arisen as a result of the falls in rental value in the UK property market during the early part of the 1990s. Considers overage cases being caused by the rent passing being above rental value on a normal rent review pattern because of a letting on an abnormal review pattern. Comments on the straightforward case of a fall in rental value since the last rent revision. Concludes that the growth explicit model is a better and more consistent methodology for the market valuation of investment property.
8 citations
TL;DR: The authors discusses the problems which arise from the many definitions of "market value" which occur in various parts of the world and suggests a need for a common language and the avoidance of terms which tend to confuse the issues involved rather than clarify them.
Abstract: Considers the problems which have arisen in recent years from the many definitions of ′market value′ which occur in various parts of the world. Suggests there is a need for a common language and the avoidance of terms which tend to confuse the issues involved rather than clarify them. Deals with the concept of forced sale and makes reference to the vital role of the International Asset Valuation Standards Committee.
7 citations
TL;DR: In this paper, the use of the geometric mean as a measure of average return on investment presents problems for estimating the variance as a risk measure of risk, and it can have major consequences for investment decision-making and portfolio selection.
Abstract: Suggests that the use of the geometric mean as a measure of average return on investment presents problems for estimating the variance as a measure of risk. Notes that the use of a measure based on the arithmetic mean seems an uncomfortable compromise. Shows that measures based on the geometric mean are also systematically biased in the case of log normal returns. Concludes that this can have major consequences for investment decision‐making and portfolio selection.
5 citations
TL;DR: In this article, the authors discuss the valuation and forecasting methods principally used in the USA to determine the worth and market value of a real estate asset and conclude that the decision to buy or sell a real-estate asset will be influenced by the pricing techniques of the real estate broker, the appraisal methodology of the appraiser and the internal analysis of the investor.
Abstract: Discusses the valuation and forecasting methods principally used in the USA to determine the worth and market value of a real estate asset. Notes that the decision to buy or sell a real estate asset will be influenced by the pricing techniques of the real estate broker, the appraisal methodology of the appraiser and the internal analysis of the investor. Concludes that the process of real estate appraisal is intrinsically linked to the cultural and statutory process of the subject market.
5 citations
TL;DR: In this paper, the authors present a taxonomy for feasibility analysis and feasibility problems applicable to each situation and discuss the role of the developer in the context of the development process and the nature of feasibility analysis that is most appropriate for developers as clients.
Abstract: Applies, modifies and extends the basic taxonomy Professor Graaskamp developed for feasibility studies to present a framework for understanding how market analysis and feasibility research are carried out. Situations are modified and the relevant actors and feasibility problems applicable to each situation are identified and discussed. Finally makes explicit the role of the developer in the context of the development process and the nature of feasibility analysis that is the most appropriate for developers as clients.
TL;DR: In this paper, the authors present a methodology for designing, creating and maintaining a performance index of properties held in institutional portfolios, using the Russell Canadian Property Index (RCPI) for asset allocation and performance measurement purposes.
Abstract: Presents the methodology for designing, creating and maintaining a performance index of properties held in institutional portfolios. Illustrates the technique using the Russell Canadian Property Index (RCPI). Notes that it can be used for asset allocation and performance measurement purposes. Concludes that the introduction of real estate indices to institutional investors′ allocation and evaluation frameworks will assist in promoting and entrenching this asset class as a necessary component of any pension portfolio.
TL;DR: In this paper, the authors review the various types of fraud in which a building society mortgage valuer may become involved and consider the possible conflicts of interest which could lead to fraudulent practices.
Abstract: Reviews the various types of fraud in which a building society mortgage valuer may become involved. Considers the possible conflicts of interest which could lead to fraudulent practices. Recommendations are made for improving the consistency and accuracy of building society mortgage valuations together with suggestions for ensuring that the valuer is truly independent.
TL;DR: In this paper, the potential impact of seven-day trading on the spatial pattern of retail rents is investigated. But the authors conclude that the Institute of Fiscal Studies predicts that Sunday trading will have no appreciable effect on the overall level of turnover in the retail sector resulting in a decline in the real value of retail rent.
Abstract: Considers the potential impact of seven‐day trading on the spatial pattern of retail rents. Notes that the Institute of Fiscal Studies predicts that Sunday trading will have no appreciable effect on the overall level of turnover in the retail sector resulting in a decline in the real value of retail rents. Concludes that shopping areas in large town centres are most vulnerable to a decline in retail activity.
TL;DR: In this article, the authors present a case study of the British Columbia Assessment Authority (BCAA) that has been a leader in the development of comprehensive data systems for use in mass appraisal.
Abstract: Presents a case study of the British Columbia Assessment Authority (BCAA) that has been a leader in the development of comprehensive data systems for use in mass appraisal. Uses this to illustrate a considered approach to addressing the issues. Reviews the types of analysis typically undertaken by appraisers and specifically how this is done by BCAA. Notes that these programmes integrate the typical valuation process with the requirements to manage and organise mass data files.
TL;DR: In this paper, the development appraisal seeks to establish the potential use value of land as a golf course and points out that achieving optimum productivity may be seriously hampered by the "conservatism" of planning authorities reluctant to allow added value in the form of other facilities, particularly any associated housing development and especially in metropolitan greenbelts.
Abstract: Notes that the development appraisal seeks to establish the potential use value of land as a golf course. Points out that achieving optimum productivity may be seriously hampered by the “conservatism” of planning authorities reluctant to allow added value in the form of other facilities, particularly any associated housing development and especially in metropolitan greenbelts. Concludes that developers will recognise the need to initiate market researched appraisal‐led schemes and planners will have to reconcile market forces with environmental objectives.
TL;DR: The European Group of Valuers of Fixed Assets (EGVIA) as mentioned in this paper is an international association of valuation professionals that aims to promote a commonality of valuation certificates for fixed assets.
Abstract: Examines the origins, objectives and achievements of the European Group of Valuers of Fixed Assets. Discusses the principles and contents of the European Guidance Notes on the Valuation of Fixed Assets. Concludes that there is now a consensus among valuation professionals involved internationally that they must work to a commonality of valuation certificate.
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TL;DR: In this article, the problems of rating valuations for street and indoor markets are discussed and discussed the most suitable way to solve them using three different types of market as examples and provided guidelines for the rating valuation of markets throughout the country.
Abstract: Considers the problems of rating valuations for street and indoor markets. Discusses the most suitable way to solve them using three different types of market as examples. Queries whether the rates bill should be charged to the landlord or the occupier of the individual stall. Provides guidelines for the rating valuation of markets throughout the country.
TL;DR: In this article, the authors trace the events leading up to the US savings and loan crisis and discuss the role of the property appraiser in the process of identifying chronic weakness and problems in the structure of the profession.
Abstract: Traces the events which led up to the US savings and loan crisis. Discusses the role that the property appraiser played in the process. Concludes that the savings and loan crisis not only helped to identify chronic weakness and problems in the structure of the profession but also helped to solve those problems.
TL;DR: In this paper, the authors challenge the concept of warehousing as the stockholding facility for oversupply and argue that merely keeping a warehouse for stockholding will be a sign of failure.
Abstract: Challenges the concept of warehousing as the stockholding facility for oversupply. Comments on the historic context, the current market, the property element and volume rents. Notes that the single european market and Japanese industrial investment will be strong forces for change in this sector in the UK. Concludes that merely keeping a warehouse for stockholding will be a sign of failure.
TL;DR: The role of the Australian Institute of Valuers and Land Economists has been highlighted in the development of the valuation profession in Australia as discussed by the authors, which has recently undertaken important developments in order to enhance its professional status and standards.
Abstract: Outlines the nature of the valuation profession in Australia. Notes that the profession has recently undertaken important developments in order to enhance its professional status and standards. Comments on the role of the Australian Institute of Valuers and Land Economists which has been crucial to these developments.
TL;DR: A section by section guide to the compensation provisions of the Planning and Compensation Act 1991 concludes that pressure for further change will continue but that the prospect of a consolidated compensation code now seems very remote.
Abstract: Provides a section by section guide to the compensation provisions of the Planning and Compensation Act 1991. Concludes that pressure for further change will continue but that the prospect of a consolidated compensation code now seems very remote.
TL;DR: In this paper, an explicit risk model was used to examine investment performance in the private rented housing sector and to identify target returns for these investments, and the reasons for disinvestment and the factors which need to be addressed in order to sustain a viable sector in the future.
Abstract: Uses an explicit risk model to examine investment performance in the private rented housing sector Suggests that by using such rational analysis it is possible to identify target returns for these investments Examines the reasons for disinvestment and the factors which need to be addressed in order to sustain a viable sector in the future Concludes that for small investors already investing in a specific sub‐market of the sector reasonable returns are available without them having to improve the structure or the image of their holdings
TL;DR: In this paper, the authors highlight the major planning proposals of interest to practitioners and discuss the major changes and new procedures introduced in the Planning Act 2017, while leaving the framework of town and country planning in place.
Abstract: Seeks to highlight the major planning proposals of interest to practitioners. Summarises other changes as they apply to England and Wales. Concludes that while leaving the framework of town and country planning in place, the new Act makes significant changes and introduces important new procedures.