Property Valuation Methods Research Articles

상속세 및 증여세법상부동산 시가적용에 관한 최근 과세 쟁점

The basic structure of the assessment of property under the current inheritance and gift tax law is a simple one in which it is based on the market price, but in cases where it is impracticable to calculate the current market price, complementary valuation methods are used as an exception. However, the abstractness of the concept of the market price and what specific extent to which it should be recognized as the market price are complex and difficult issues. Because of this, many controversies arise between taxpayers and tax authorities.
 With the purpose of the improvement of fair taxation, Korea's inheritance and gift tax law has continuously expanded the scope of what can be recognized as the market price based on the principle of the market price. This reflects the reality that there is an inevitable conflict of interest between taxpayers who prefer complementary valuation methods due to the property valuation method of the inheritance and gift law, which allows complementary valuation methods to be exceptionally applied only in cases where it is impracticable to calculate the current market price and the realistic price rate of the officially assessed real estate price that is far below the market price, and tax authorities.
 The value recognized as the market price under the current inheritance and gift tax law can be divided into four categories, which are the relevant property and the case value for similar property within the principle of assessment period, and the relevant property and the case value for similar property within the extended evaluation period.
 This study deals with ‘the application of similar case values to apartments, etc.’ which is controversial regarding the scope of market recognition and ‘whether the appraised value requested by the tax office after the reporting date for non-residential real estate, etc. is recognized as market price or not’ targeting real estate, which accounts for a high proportion of inherited and gifted properties. In relation to this, there are many criticisms that it is not only against the principle of fair taxation, but it can also infringe on the taxpayer's predictability in terms of that excessive taxation is imposed on some taxpayers for properties with the same burden due to the existence of a sale price of similar property traded by another person by chance or an appraisal request based on the arbitrary judgment of the tax authorities, etc.
 It is not easy in reality to establish clear and consistent standards that all taxpayers can agree on when calculating the market price of inherited or gifted property whose ownership is transferred gratuitously. However, it is essential that the tax authorities continue to make efforts to accept criticism of existing taxation practices as article 15 of the enforcement rules of the inheritance and gift tax law legislate the scope of similar property in apartments in detail.
 This study analyzed major issues in taxation practice by analyzing the provisions of the inheritance and gift tax law and recent precedents regarding the scope of provisional recognition of the market price and sought ways to improve them. The main tax issues in applying the case value for similar property to apartments, etc. are; first, exclusion of application of the case value for similar property if there is a case value for the relevant property, second, the period of market recognition for the case value for similar property, third, criteria for judging similarity, and fourth, whether there are special circumstances for price fluctuations.

A FRAMEWORK TO INTEGRATE BIM WITH ARTIFICIAL INTELLIGENCE AND MACHINE LEARNING-BASED PROPERTY VALUATION METHODS

Abstract. Property valuation is of extreme importance since variations in the real estate market enormously influence people’s life. The main goal of Automated Valuation Models (AVMs) is to calculate the market value of a large number of properties with an acceptable accuracy. The Hedonic Price Model (HPM) is the most widely used AVM for the valuation purposes. Despite its simplicity, ease of use and straightforwardness, HPM lacks the capability to address the non-linear relationships between different value-related factors. Hence, researchers have developed other state-of-the-art property valuation methods based on the advancements in computer science including Artificial Intelligence (AI), Machine Learning (ML), computer vision and deep learning. Design, development, and validation of such advanced AVMs require establishment of a database including data on the different influential factors. Two types of factors are used in the literature, including textual and visual features. Reliable data sources are required for the implementation of AVMs since the accuracy of the provided valuations is definitely linked to the reliability of the used real estate databases. Building Information Modelling (BIM) provides precise information on different components of properties. Although some scholars have tried to use BIM for property valuation, BIM benefits in different valuation procedures have not been fully investigated. Hence, this paper provides a framework that consider BIM capabilities to be integrated with different stages and processes in property valuation, especially in relation to advanced AVMs based on AI and ML.

A framework to assess the valuation techniques for new technology-based firms: a case in an emerging market

ABSTRACT Valuation of new technology-based firms and startups is one of the main concerns of these Firms. The need to expand financial resources and evaluate the potential income of these firms increases the importance of the valuation of these firms for entrepreneurs and investors. In this paper, we represent a comprehensive framework to assess the strengths and the weaknesses of the valuation methods in NTBFs with a focus on the factors in the emerging markets. For this purpose, different valuation methods and their related criteria for NTBFs are extracted and evaluated by experts in terms of applicability and Sufficiency. We categorized the existing valuation methods to 4 different groups: “asset valuation methods”, “intellectual property valuation methods”, “technology valuation methods”, and “startups valuation methods”. Then, the importance of each criterion is determined using the analytical hierarchical process method. Finally, we used fuzzy TOPSIS to prioritize each category of valuation methods and identify their strengths and weaknesses. The results indicate which sets of valuation methods are the more preferred method for Iranian entrepreneurs and investors to evaluate different kinds of NTBFs. Besides, the results of the model on different criteria proposed different suggestions to improve the existing valuation methods.

Knowledge and Practice of Valuation Methods by Real Estate Practitioners

Property valuation services provided by real estate practitioners significantly impact global economies because property valuation methods affect the accuracy of the estimates of the market value of real properties. The paper assessed the level of knowledge and extent of practice of real estate practitioners on the valuation methods. Likewise, the study investigated the challenges encountered by respondents in their practice. This descriptive-comparative and correlational study utilized a test questionnaire to measure the level of knowledge and a researcher-made survey instrument to measure the extent of practice on the 98 licensed real estate practitioners. With descriptive and inferential analyses, the findings ascertained respondents' average level of knowledge on both methods of valuation. While for the extent of practice of valuation methods, findings revealed great extent for traditional method while moderate for advanced method. Consequently, significant differences were found when the length of practice of the profession, designation, and educational attainment were used as variables. Results disclosed an inverse relationship between knowledge and practice. The major challenge encountered by real estate practitioners is the influence of property owners in fixing the value of real properties, which hinders a fair, accurate, and ethical valuation.

Barriers, drivers and prospects of the adoption of artificial intelligence property valuation methods in practice

ABSTRACT Embracing technological advancement in the property valuation practice is unavoidable. However, studies show that valuers largely still adopt traditional methods of valuation. Hence, this study investigates the barriers, drivers, and prospects of the adoption of artificial intelligence (AI) valuation methods in practice. An online questionnaire survey was conducted on valuers practising in Australia. Their opinions about the topic were collected and analysed using frequency distribution and mean score ranking to establish the most significant factors. According to the valuers, the most important advantage of AI valuation methods is that they will help to reduce the cost of valuations. It was also found that the professional bodies that regulate the property valuation practice are the major driver of the adoption of AI valuation methods. The valuers expressed that AI valuation methods may produce accurate estimates. The valuers confirmed that the main prospect of adopting the AI valuation methods in practice is that it could transform the property valuation industry. It is evident that all the property valuation stakeholders should invest efforts in promoting the adoption of AI valuation methods in practice to bridge the gap between theory and practice. This will help reposition the property valuation profession.

A Framework to Assess the Valuation Techniques for New Technology-based Firms: A case in an Emerging Market

Valuation of new technology-based Firms and Startups is one of the main concerns of these Firms. The need to expand financial resources and evaluate the potential income of these firms increases the importance of the valuation of these firms for entrepreneurs and investors. In this paper, we represent a comprehensive framework to assess the strengths and the weaknesses of the valuation methods in NTBFs with a focus on the factors in the emerging markets. For this purpose, different valuation methods and their related criteria for NTBFs are extracted and evaluated by experts in terms of applicability and Sufficiency. We categorized the existing valuation methods to 4 different groups: “asset valuation methods”, “intellectual property valuation methods”, “technology valuation methods”, and “startups valuation methods”. Then, the importance of each criterion is determined using the analytical hierarchical process method. Finally, we used fuzzy TOPSIS to prioritize each category of valuation methods and identify their strengths and weaknesses. The results indicate which sets of valuation methods are the more appropriate method to evaluate different kinds of NTBFs. Besides, the results of the model on different criteria proposed different suggestions to improve the existing valuation methods.

Lifelong Property Price Prediction: A Case Study for the Toronto Real Estate Market

We present LUCE, the first life-long predictive model for automated property valuation. LUCE addresses two critical issues of property valuation: the lack of recent sold prices and the sparsity of house data. It is designed to operate on limited volume of recent house transaction. As a departure from prior work, LUCE organizes the house data in a HIN where graph nodes are house entities and attributes that are important for house price valuation. We employ GCN to extract the spatial information from the HIN, and then use LSTM network to model the temporal dependencies over time. Unlike prior work, LUCE makes effective use of the limited house transactions in the past few months to update valuation information for all house entities. By providing a complete and up-to-date house valuation dataset, LUCE thus massively simplifies the downstream valuation task for the targeting properties. We demonstrate the benefit of LUCE by applying it to large, real-life datasets obtained from the Toronto real estate market. Extensive experimental results show that LUCE not only significantly outperforms prior property valuation methods but also often reaches and sometimes exceeds the valuation accuracy given by independent experts when using the actual realization price as the ground truth.

Pricing to market: property valuation methods – a practical review

PurposeValuation is the process of determining Market Value. Property valuation, as with the valuation of all assets, is an estimation of price in the market. It is value in exchange. The valuer role is to determine the appropriate approach, the method and use the right model to achieve this aim as best as possible. It is a combination of analysing the market and determining the critical variables for the valuation method/model. The method is separate from the valuation process which should be followed (according to the International Valuation Standards Council Valuation Standards) regardless the valuation method chosen. There are valuation approaches, valuation methods and, as a subset of the methods, techniques or models.Design/methodology/approachThis practice briefing is an overview of the Valuation Methods and Models available to the valuer and comments on the appropriateness of valuation each in assessing Market Value for specific property types.FindingsThis briefing is a review of the valuation methods and models and models that can be applied to determine market value.Practical implicationsThe role of the valuer in practice is to identify the method of valuation and then apply the correct mathematical model for the valuation task in hand.Originality/valueThis provides guidance on how valuations can be presented to the client in accordance with the International Valuation Standards.

The demand for education: The impacts of good schools on property values in Brisbane, Australia

The demand for education is partly revealed by a higher demand for properties around good schools, which has been the basis for a number of empirical studies. This research attempts to explore the nexus of school quality and the property market when school ranking is clearly available to the public. The spatial hedonic property valuation method was employed to analyze selected Brisbane public (state) and private schools consisting of those with high, middle and low ranking in terms of average student academic school performance. The results imply the capitalization of school values in both property and rental prices. The research also demonstrates the spillover impacts of school development. Such impacts are higher in comparison to previous studies, which are supported by the average school performance considered in individual assessments. The results of this study can be a valuable input into school policy reforms. (JEL: H23, I20, I28, R21)

A Review of the Impact of Green Building Certification on the Cash Flows and Values of Commercial Properties

This study aims to review empirical research concerning the impact of green certificates on property cash flows and values, particularly from professional property investors’ perspective. The study uses discounted cash flows (DCF), a widely used property valuation method in income-generating properties, as a methodological framework. In this study, over 70 peer-reviewed studies were identified, categorized, and analyzed in the DCF framework. The reviewed studies indicated that certificates might increase the rental income and decrease the operating expenses, vacancy, and risks of a property. Together with the brand value of certificates, these enhancements should lead to an increase in property value. The number of studies has grown rapidly during the 2010s. Lately, studies have developed from asset-level to portfolio-level examinations. Although the reviewed studies found certification to be beneficial, the range of reported benefits was wide, and over half of the studies concentrated on U.S. commercial real estate markets, with a strong focus on LEED and ENERGY STAR certificates. From a property valuation perspective, applying these results to other markets and certificates might be challenging. Property values that fully reflect the environmental performance of properties would be a key to motivate mainstream investors to adopt sustainable property features.

Organizational and economic mechanism of assessment property objects of JSC «Ukrainian railways»

The article is devoted to the study of the problems of the formation of the organizational and economic mechanism for assessing property objects of railway transport enterprises in modern conditions of development of the domestic economy. It is proposed to adhere to such basic principles when assessing the property of railway transport enterprises: utility, supply and demand, substitution, expectation, marginal contribution performance, most efficient use, additional effect, multiple approaches and diversity. The methodological approaches and property valuation methods used in the valuation of property of railway transport enterprises are analyzed in detail. It has been established that the organizational and economic mechanism for assessing property objects of railway transport in order to form the authorized capital of JSC “Ukrainian railways” includes a set of organizational and economic elements that generally provide a complete algorithm for the implementation of the organizational and economic mechanism for evaluating property objects of the joint stock company “Ukrainian railways” and consists of the following blocks: information support, organizational support and calculation and methodological support. The study of the organizational and economic mechanism for evaluating the property of railway transport enterprises from the perspective of an integrated approach allows us to present it as an integrated system, which is formed from a combination of interconnected elements. In addition, an algorithm for the implementation of the organizational and economic mechanism for assessing property objects with the aim of forming the authorized capital of the company is proposed.

VALUATION OF AERONAUTICS AND SPACE TECHNOLOGY AT LAPAN

<p><em>New challenges arises for government institutions engaged in research and engineering to continuously innovate and develop technologies that have competitive advantages and provide income for the country through royalty from licensed technology. This research carried out to valuate the aeronautics and space technology. The objective of the study is to develop appropriate intellectual property valuation methods. This research is a case study utilizing sequential mix method which is the combination of quantitative and qualitative research. By using intellectual capital theory, this research-broaden the literatures on the technology valuation in the field of aeronautics and space. This study fills research gap on the existing technology valuation method that is still partially conducted by government research and development. </em></p><p><em>This study discusses the value of intangible assets and licenses from intellectual property that are calculated through three valuation approaches, such as cost-based approach, income-based approach, and market-based approach. The results of the study show that the most appropriate intellectual property valuation method are the cost-based approach and income-based approach.</em></p><p><strong><em>JEL Classification: </em></strong><em>O30, O31, O33</em><strong></strong></p><strong><em>Keywords</em></strong>: <em>Cost Based Approach,</em><em> Income Based Approach, Intellectual Property, Market Based Approach, Sequential Mix Method </em>

Property valuation methods in practice: evidence from Australia

PurposeImproving valuation accuracy, especially for sale and acquisition purposes, remains one of the key targets of the global real estate research agenda. Among other recommendations, it has been argued that the use of technology-based advanced valuation methods can help to narrow the gap between asset valuations and actual sale prices. The purpose of this paper is to investigate the property valuation methods being adopted by Australian valuers and the factors influencing their level of awareness and adoption of the methods.Design/methodology/approachAn online questionnaire survey was conducted to elicit information from valuers practising in Australia. They were asked to indicate their level of awareness and adoption of the different property valuation methods. Their response was analysed using frequency distribution, χ2 test and mean score ranking.FindingsThe results show that the traditional methods of valuation, namely, comparative, investment and residual, are the most adopted methods by the Australian valuers, while advanced valuation methods are seldom applied in practice. The results confirm that professional bodies, sector of practice and educational institutions are the three most important drivers of awareness and adoption of the advanced valuation methods.Practical implicationsThere is a need for all the property valuation stakeholders to synergise and transform the property valuation practice in a bid to promote the awareness and adoption of advanced valuation methods, (e.g. hedonic pricing model, artificial neural network, expert system, fuzzy logic system, etc.) among valuers. These are all technology-based methods to improve the efficiency in the prediction process, and the valuer still needs to input reliable transaction data into the systems.Originality/valueThis study provides a fresh and most recent insight into the current property valuation methods adopted in practice by valuers practising in Australia. It identifies that the advanced valuation methods could supplement the traditional valuation methods to achieve good practice standard for improving the professional valuation practice in Australia so that the valuation profession can meet the industry’s expectations.

“Cyclical assets” and cyclical capitalization

PurposeThe purpose of this study is providing a possible methodological solution to the valuation of cyclical.assets. International Valuation Standards introduce a brand new definition of property: the cyclical asset (International Valuation Standards Council 2017, IVS 105, p. 39 and p. 41). Among different property valuation methods, normally this kind of properties is appraised using income approach. In this group of methodology, the opinion of value is based on a proportional relationship between property value and rent. In the past years, a group of methods called cyclical capitalization has been proposed (d’Amato, 2003; d’Amato, 2013;d’Amato, 2015; d’Amato, 2017a; d’Amato 2017 b; d’Amato, 2017c). This method proposes an integration between property valuation and property market cycle.Design/methodology/approachCyclical capitalization method is applied using a time series of property market rent of offices in prime location in the South Bank area in London. It consists of the determination of more than one all-risk yield to reproduce the property market cycle.FindingsA comparison between the cyclical capitalization and two traditional capitalization rate shows how the proposed model is able to provide a stable opinion of value.Research limitations/implicationsThe method may represent a contribution for the determination of the value of cyclical assets or for the mortgage lending value.Practical implicationsThis paper provides the possibility to have a property valuation method less sensitive to upturn and downturn of the property market.Social implicationsThe valuation based on cyclical capitalization are less sensitive to the upturn and the downturn of the market.Originality/valueIt is one of the first scientific paper addressing the problem of the determination of the value of cyclical assets.

The Impact of Accurate Home Price Estimates inResidential Mortgage-Backed Securities

This article examines how home price assumptions utilized in the credit analysis of U.S. residential mortgage backed securities analysis were inadequate leading up to the financial crisis. The valuation techniques have improved immensely since then. Coupled with techniques to identify the specific properties underlying each security, precise valuation methods such as Automated Valuation Models (AVMs) and neighborhood level price indices have been brought to bear in the analysis of securitizations today. The major benefit to the financial industry is more accurate pricing of bonds—both to support trading in the secondary market and to help institutions struggling in this illiquid market to find appropriate valuations for the securities they hold on their own books. As the securitization market returns, these property valuation methods tied to anonymous, securitized mortgage pools will be critical to increasing transparency, raising investor confidence, improving liquidity, and minimizing fraud. <b>TOPICS:</b>MBS and residential mortgage loans, CMBS and commercial mortgage loans

Intellectual property valuation: how to approach the selection of an appropriate valuation method

PurposeThis paper aims to assess how to select an appropriate intellectual property valuation method according to the valuation situation and context.Design/methodology/approachThe article describes the difference between the quantitative and qualitative methods and principles. It reviews the principal approaches and methods used to evaluate an intellectual property asset and proposes a framework to help the evaluators to select an appropriate valuation method. The paper initiates a discussion on the parameters and requirements that influence the choice of an IP valuation method in order to reach the expected valuation result.FindingsThis paper provides useful guidelines for any evaluator who would be responsible for executing an IP valuation and who would be faced with the difficult task of choosing an appropriate IP valuation method. It is the intention of this paper to develop a synthesised and integrated procedure for the selection of an IP valuation method.Research limitations/implicationsThe limitation of this paper is that not all of the existing methods were described and taken into account in the final proposed procedure. The authors made a series of assumptions and a selection of the methods that may not be entirely shared by other researchers and practitioners. The authors are conscious that this constitutes a first proposal in the selection process of the most relevant IP valuation method. Further discussions and developments would be carried on in the future to enhance the proposed procedure.Originality/valueThis paper proposes a framework to orientate the choice of an appropriate IP valuation method according to the context and situation in which the valuation is to be implemented.

ENVIRONMENT FACTORS OF ENERGY COMPANIES AND THEIR EFFECT ON VALUE: ANALYSIS MODEL AND APPLIED METHOD

Practical tasks related to property management and disposal in energy companies can be solved only if the actual property value of these companies is known. Traditional practical property valuation methods are based on the analysis of incurred property development costs or financial indicators of activities and are inadequate to account for the influence of environment factors on corporate activities and, in turn, on the value of companies. An analysis model for environment factors affecting energy companies was developed to improve objectiveness of valuation; through analysis of the model's components it is possible to analyse external macro, meso and microenviron‐ment of a particular company and to assess efficiency of such environment, as well as the impact of separate factors on value. A criteria system developed using the Analysis Model for Environment Factors and the Decision Support System for Measurement of Effect of Environment Factors on Value of Energy Companies, which was developed by the authors, were used to solve a practical task, which helped to evaluate the effectiveness of the Model of Environment Factors. The practical task included measurement of the utility degree and market value of the selected electricity companies and assessment of the impact of the criteria, which affect the environment, on the value of the selected energy companies. Santrauka Energetikos įmonių turto valdymo, disponavimo turtu praktiniams uždaviniams spręsti reikalinga tikroji šių įmonių turto vertė. Tradiciniai praktikoje taikomi turto vertinimo metodai pagrįsti turto sukūrimo sąnaudų ar veiklos finansinių rodiklių analize, jie neįvertina daugelio vertę veikiančių aplinkos veiksnių įtakos. Siekiant padidinti vertės nustatymo objektyvumą, pasiūlytas taikyti energetikos įmonių aplinkos veiksnių tyrimo modelis, kurio elementų analizė leidžia įvairiais aspektais pažvelgti į šių įmonių turto vertę ir įvertinti vertės kitimo priežastis. Sukurtas modelis leidžia analizuoti įmonės aplinką, vertinti jos efektyvumą, aplinką ir suinteresuotas grupes veikiančią išorinę makro-, mezo- ir mikroaplinką kaip visumą. Naudojantis rodiklių, apibūdinančių analizuojamo sektoriaus aplinką, sistema, pasiūlyta infrastruktūros įmonėms vertinti, taikyti daugiakriterine analize paremtus metodus. Siekiant nustatyti aplinkos veiksnių tyrimo modelio veiksmingumą, išspręstas praktinis uždavinys – taikant modelį ir remiantis daugiakriterinės analizės metodais nustatytas pasirinktų elektros energetikos įmonių naudingumo laipsnis ir rinkos vertė.

PROPERTY VALUATION BY MULTIPLE CRITERIA METHODS/NEKILNOJAMOJO TURTO VERTINIMAS DAUGIAKRITERINIU METODU

Multiple criteria valuation methods are widely used in real estate valuation all over the world. In USA, UK and other countries these methods are part of techniques based on comparative and reinstatement values as well as on income of use. They are used in valuating various property characteristics, ie its location or obsolescence degree. In Germany, however, multiple criteria valuation technique refers to a separate group of property valuation methods applied when market data are unavailable or insufficient (ie purchasing, selling or renting prices are not known). The above methods have been used for real estate valuation since 1976. Dr. H. E. Auerhammer [1] was the first to apply these approaches to solving real estate valuation problem caused by the scarcity of market data. These methods supplemented with systems of criteria developed by other authors were later applied to particular cases when three major commonly used property valuation methods could not be applied. Thus, K. Gablenz [2] suggests using the method described in assessing plots intended for agriculture, while B. Bischoff [3] offers to use it for determining the investments into plots. R. Vogel [4] thinks that the approach may be used for determining the approximate value of land, whereas G. Sommer and P. Zimmermann [5] and Piehler [6] developed a system of criteria to be used as a part of the method described in determining the differences between the value of quantitative and qualitative characteristics of an object and its market value. T. Gierardy and R. Moeckel [7] described the advantages and disadvantages of methods based on multiple criteria analysis. The above methods are widely used in Germany for property valuation, the peak of their application being associated with the unification of East and West Germany in 1990 [8]. Multiple criteria analysis presented in this paper for property valuation may be used to the advantage of various interested parties (see Fig 1). The representatives of various parties including appraisers, buyers, sellers and investors may use it for their particular purposes: appraiser may apply this method to real estate value analysis for determining the market, use and other values of real estate being mortgaged, ensured, privatised, divided or nationalised; investor may rely on it for more efficient use of this property; buyer may use it for choosing property which would satisfy his personal needs to the best advantage; seller has to determine the market price of his property that would ensure its competitive ability on the market. To satisfy all the needs described multiple criteria valuation method presented in the paper may be successfully used. To show its efficiency the solution of a sample problem, representing a real case is provided.

PROPERTY VALUATION BY MULTIPLE CRITERIA METHODS

Summary Multiple criteria valuation methods are widely used in real estate valuation all over the world. In USA, UK and other countries these methods are part of techniques based on comparative and reinstatement values as well as on income of use. They are used in valuating various property characteristics, ie its location or obsolescence degree. In Germany, however, multiple criteria valuation technique refers to a separate group of property valuation methods applied when market data are unavailable or insufficient (ie purchasing, selling or renting prices are not known). The above methods have been used for real estate valuation since 1976. Dr. H. E. Auerhammer [1] was the first to apply these approaches to solving real estate valuation problem caused by the scarcity of market data. These methods supplemented with systems of criteria developed by other authors were later applied to particular cases when three major commonly used property valuation methods could not be applied. Thus, K. Gablenz [2] sugge...

The property market, property valuations and property performance measurement

1.1. The Institute has discussed papers on most aspects of institutional investment in recent years, with the notable exception of property. This is not due to the lack of importance of this investment sector to pension funds and life offices, but perhaps to the greater role of actuaries (rather than surveyors) in the other investment media and to the interest in mathematical models for gilts and equities.1.2. In this paper we have not tried to produce a mathematical model of the property market, a new valuation method for property or solutions to the extensive problems of property performance measurement and indices. We have, however, tried to pull together, in a single paper, the volumes of material on the property market and property valuation methods. We have also tried to set down some of the pitfalls of property performance measurement, which often tend to be overlooked in the relentless pursuit for more statistics in this important area.