This study is concerned with the correlation between valuations and prices. The study will particularly examine whether the valuations (for a wider and diverse range of properties) undertaken by independent valuers on behalf of the Zambia Privatisation Agency (herein after, ZPA) are accurate reflection of the market prices. Previous studies indicate that valuations are a good proxy for market prices. This hypothesis will be put to test once again, but in a different property market setting. This study will also endeavour to highlight, where distortions of the correspondence between valuations and prices have arisen, the possible causes of such distortions. The method of privatisation and asset disposal, for instance, could have had a bearing on the non-correspondence of valuations and prices. Alternatively, the valuation-price discrepancies could have arisen out of valuation error and bias, or other causes. In this study we are particularly interested in the existence and extent of valuation error and/or bias. The initial study done earlier (Musole 1998) detected a sizeable amount of valuation error, but valuation bias was found to be virtually non-existent (in congruent with tentative findings of similar studies done previous in the UK). In this regard, this study (being much more rigorous and based on a larger database) will serve as a confirmation or refutation of the existence of valuation error or bias in the valuation process as alleged by certain sections of the public in Zambia.

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