Valuing properties when comparable sales do not exist and the market is in disequilibrium
Hendershott, P.H.
Valuing properties when comparable sales do not exist and the market is in disequilibrium - 1996 - Journal of Property Research 13(1) March 1996, 57-66(10) .
Using the value/replacement cost ratio for the 1992 Sydney office market as an example, the author argues that when carrying out property market valuations when the market is in a state of disequilibrium, cash flows need to be forecast only until equilibrium is reached at which point value equals depreciated replacement cost.
CASH FLOWS
DEPRECIATED REPLACEMENT COST
DISEQUILIBRIUM
DRC
PROPERTY MARKET
VALUATION METHODS
Valuing properties when comparable sales do not exist and the market is in disequilibrium - 1996 - Journal of Property Research 13(1) March 1996, 57-66(10) .
Using the value/replacement cost ratio for the 1992 Sydney office market as an example, the author argues that when carrying out property market valuations when the market is in a state of disequilibrium, cash flows need to be forecast only until equilibrium is reached at which point value equals depreciated replacement cost.
CASH FLOWS
DEPRECIATED REPLACEMENT COST
DISEQUILIBRIUM
DRC
PROPERTY MARKET
VALUATION METHODS