PROPERTY INVESTMENT VALUATION : THE MODERN APPROACHES

Abstract

The income method of valuation is based on the principle of anticipation whereby an estimation is made of the present worth of the income stream from the property in future. The conventional method has long been established and widely used in the United Kingdom. However, due to some inherent weakness, this has led to modifications and changes over the years. Thus, evolves the contemporary methods such as Real Value Method and Discounted Cash Flow Method, etc. The aim of this dissertation is to trace the evolution of the contemporary methods. Each of the contemporary methods will be compared with one another and critically analyzed. Their usefulness will be further tested in case studies involving a leasehold industrial warehouse. The results derived from each method will be analyzed and compared with one another to check on its reliability and application in Singapore. This study will certainly not be exhaustive and, where possible, issues will be highlighted for further studies.