Property Valuation in Nudgee Suburb

This assignment focuses on property valuation in the Nudgee suburb of Brisbane. It utilizes data from sold properties to calculate the median price, employing various property valuation methods as outlined in the provided bibliography. The document also includes links to real estate listings and government resources related to land valuation and historical trends in Queensland.

Valuation Summary
The given valuation is an independent valuation of the below mentioned residential property for
the purpose of mortgage. Given below are the pertinent details regarding the property evaluated
Property Details
 Address: 46, Overlea Street, Nudgee, QLD 4104.
 Bedrooms: 4
 Bathrooms: 2
 Car Parking spaces: 2
 Status of Property: Property of (to be added by student)
 Floor Size:766 square meters
The table below describes the valuation that is further discussed in the report. The valuation was
conducted to identify the market value of the said property for purpose of mortgage and was
based on a market data, including primary and secondary data collected from various sources.
The property was evaluated at an arm’s length basis and conducted according to the most
relevant international and Australian property valuation laws and standards using the “Sales
Comparison Approach.”
Valuation of the property as house: AUD 72610 0
Valuation of Improvements: Nil
Total Valuation of property: AUD 72610 0

Contents
1. Introduction.........................................................................................................................................3
2. Disclaimer...........................................................................................................................................3
3. Instructions..........................................................................................................................................3
4. Land & Title Details............................................................................................................................4
5. Easements and Encumbrances.............................................................................................................4
6. Existing Uses.......................................................................................................................................4
7. Location...............................................................................................................................................4
8. Site Description and Services..............................................................................................................4
9. Town Planning....................................................................................................................................5
10. Highest and Best Use.......................................................................................................................5
11. Statutory Valuation & Charges........................................................................................................5
12. Improvements..................................................................................................................................5
13. Environmental Issues.......................................................................................................................5
14. Basis, Rationale and Approach for Valuation..................................................................................5
15. Economic/Market Review/Summary :.............................................................................................6
16. Valuation.........................................................................................................................................6
17. Annexure.........................................................................................................................................9

1. Introduction
 Purpose: The primary purpose of this property valuation is to provide guidance to
prospective buyers and assess the value of the property for mortgage purposes.
 Standards: This valuation intends to embody all the “good practices for Property
Valuation laid down by International Valuation Standards Council. (IVSC)
Scope: The scope of this valuation note is limited specifically to the property mentioned,
the client applying for the valuation. and only intends to serve as a guidance note.
 Valuation Date: The valuation is valid only for 90 days from the day of publishing or
until the date specified. Valuations results will change as the general housing prices in the
market may change. Thus, there shall be no liability acceptable in case of losses incurred
due to wrong valuation after the period of the valuation estimate has expired.
 Valuation Standards: This Note recognizes and applies the guideline laid down by
“International Valuation Standards” 1 and 2 as laid down by the International Valuation
Standards Committee. All valuation projected in this report is intended to maintain the
highest possible consistency with the concepts and the definitions given thereby.
However, there may be inconsistencies with the IVSC Standards due to the application
of the Australian valuation practices viz: “Statutory Valuation and Practices Under Land
Valuation Act 2010” (Queensland Government, 2017) As mentioned, in case of
differences in valuation practices, the domestic valuation practices of Australia and the
state if Queensland supersede the IVSC practices and standards.
 History
o Site Sold Jan 2007: 225,000
o House built: August 2012: 236,000
o September 2014: 620,000
2. Disclaimer
 Third Party Liability: This valuation note intends to serve as an “advisory” strictly for
the valuation requesting party, hereby known as the “Client” and the valuation service
provider, ( Insert Student name or Valuation Practice Name Recommended by Student”,
hereby known as “consultant”. The report is not intended to serve as an advisory to any
other person or entity. Hence, there will be no third party liability for this valuation note.
 Liability in unforeseen circumstances: The report has been provided keeping in mind a
business-as-usual scenario for the validity of the report. The report is not valid in case of
the occurrence of unforeseeable circumstances such as property damage due to natural
disasters such as hurricane etc.
 Market Risk: The valuation mentioned in the report is subject to market risks.
3. Instructions

Valuation services instructions were provided by “Student’s name” upon request by Mr.
Chris Eves for the purpose of security mortgage under standing instructions from The
Great Australia Bank. Primary data was collected upon inspection of property in –person
and secondary data was collected from various sources.
4. Land & Title Details
 Property address: 46, Overlea Street, Brisbane 41004
 Land and Title Details: (Title name) Cannot fill without authorized log in f
student
 Local government : Brisbane City Council
 State: Queensland
 Registered proprietors: Cannot fill without authorized log in of student
 Land size: 766 square metres
 Lot Number/ City: 31, Brisbane
 City Zone Name: Bayon- Nudgee Zone.
 Legal description of Property: 31/ 167990
 The lease on the property expires on.. (Need information from student) Cannot
fill without authorized log in of student
5. Easements and Encumbrances
No visible easements, encumbrance or any restrictive covenants on property sale were
noticed.
6. Existing Uses
The existing use of the property is “private residential use” and all the assumptions
applicable to the existing use of residential properties according to Sections 22 and 28 are
applicable to the property. (Queensland Government, 2017)
7. Location
The property is located in Nudgee, a north suburb of Brisbane and is at a distance of
approximately 18 kilometres from the Central Business District. The Brisbane Airport is
approximately 10 kilometres away. The Nudgee railway station is at a distance of 1.5
kilometers and Banyo Railway station at one kilometre distance via St. Vincents Road. The
Nudgee Suburb is also located close to the Airport link industrial estate. (Brisbane City
Council, 2017)

8. Site Description and Services
The street is close to major road likes like the Nudgee Road and the St. Vincents road. The
nearest P-12 school is Earnshaw State college at 1.4 kilometres distance. The nearest Medical
Centre is the Hamilton Medical Care Centre. The Australian Christian University is also
located as a part of the Nudgee suburb. The development in the area is pre dominantly low
density detached housing and hence has several retail shopping and dining outlets. (Brisbane
City Council, 2017)
The property also bears reasonable proximity to leisure and recreational spots such as the
Nudgee Beach (located approximately at 5 kilometres distance). The street is located
approximately 3.5 kilometres away from the Nudgee Golf Course and approximately 2.4
kilometres away from the Virginia Golf Club.
9. Town Planning
The Nudgee Suburb is a part of the Nudgee Banyo Zone designated by Brisbane City Council
the Nudgee has been classified as “Low Density Residential” zone by Brisbane City council. The
Brisbane City Council classifies it as “Low impact industry buffer” which implies that currently,
the impact of industrial development. The property is a part of Lot 31, plan SP167990, legal
description given as 31/ 167990. The neighbourhood is a part of “(Banyo—Nudgee
neighbourhood plan/NPP-006” (Brisbane City Council, 2017)
10. Highest and Best Use
The highest and best use of the property is residential house of two storey’s. (Brisbane City
Council, 2017)The given property is the highest and best use of the house.
11. Statutory Valuation & Charges
The standard valuation applies to the entire physical structure of the property. Other charges
such as transaction costs, state and central taxes such as Goods and services taxes, transaction
charges levied by the state are extra if the valuation. (Queensland Government, 2017)
12. Improvements
There are no significant infrastructural improvements required to the house. The valuation of the
house may not increase due to any further infrastructural improvements. The value of
improvements according to section 25 is nil. (Queensland Government, 2017)
13. Environmental Issues
There are no environmental issues that prevent the sale of the property.

14. Basis, Rationale and Approach for Valuation
The approach used to value this property is “sales comparison” approach i.e the sales of
similar properties are compared and the valuation is decided. This method has been chosen
because this method is extensively used while providing valuations of residential properties.
(Abdul-Samad, 2017). The basis of valuation of property is the market value of a sale of a
property that is most similar to the given property. However, the property used for sales
comparison was sold in the past. The time lag has been accounted for by gaining data on the
growth rate of property prices and accounting for that growth by way of compounded
interest.
Further, the sales data of other similar properties sold in the last 18 months has been taken, in
order to critically evaluate the valuation price. A range of the possible valuation options is
also projected based on data available from secondary sources. The “market value” of the
entire property has been taken on an arm’s length transaction basis. It is assumed that
property is being valued for mortgage purposes as a housing establishment. Hence, taxes and
transaction costs are not included in the valuation. These costs would be applicable only
when the property would be for sale. The property valuation is based on market data as well
as some generic data provided by Brisbane City Council (See Annexure 1)
15. Economic/Market Review/Summary :
The housing prices in Brisbane have grown since 2014. However, some studies estimate that the
housing prices in Brisbane may experience a sharp drop. This may be due to the glut in the
housing market as a number of housing projects that were in the pipeline are on the verge of
completion. Thus, the supply is expected to be greater than the demand. (Reserve Bank of
Australia, 2017) The statutory land valuation has shown the following growth since 2012.
Generalizing these rates for the Nudgee – Bayonee suburb, it can be said that the price for a
similar house has grown at the rate of 6 percent per annum.
Table 1 Historical Trend for Land Valuations Growth Rate in Brisbane
Source: Queensland Government (2017)
16.
Valuation
The property should exchange at AUD 726100 (exclusive of transactions costs) on a market
value basis between a willing buyer and a willing seller.
Year 2013 2014 2015 2016 2017
Growth Rate –0.5 3.0 9.7 9.9 6.0

Given below is the appraisal of the maximum, minimum and median price (in AUD) for the
same property. (For Calculations, please see Annexure points a), b), c)
Table 2 Projected Maximum, Median and Low Valuation for 46. Overlea Street, Brisbane
QLD 4104
Maximum 792321
Median 72610 0
Low 620,000
In order to validate the accuracy of this data, the estimate of the price was compared to
prices provided by some other property vendors. The data for this was gathered from their
websites
Given below is data for some properties that were sold in the last 12 months in the Bayon
Nudgee area and are similar to the given property. This data is secondary data. Hence, the
data may not be completely accurate. However, the confidence level in the data given below
is fairly high since the data directly from real estate agents. It must be noted that the
valuation of the property being valued is not based on the data but will be merely compared
to.
Table 3 Sales Comparison: Comparison with other similar properties.
Source: Prepared by Author.
N
o
Property Address Bed
roo
ms
Bat
hro
oms
Car
Parki
ng
Space
s
Floor
Size
(in
Square
Meters
)
Sale Date Sale
Price
was
obtain
ed
(in
AUD)
Reference
Website
1 23, Overlea street,
Brisbane 41004
4 2 2 636 August
2016
685,00
0
(RealEstate.com.au
, 2017)
2 31 Overlea Street,
Nudgee, QLD 4104
4 2 2 NA January
2016
810,00
0
(RealEstate.com.au
, 2017)
3 11 Tenalga Court
Nudgee, QLD 4104
4 2 2 901 October
2017
570,00
0
(RealEstate.com.au
, 2017)

4 77 Forrest Street,
Nudgee, QLD 4104
4 2 2 760 Septembe
r 2017
810,00
0
(Place Estate
Agents, 2017)
5 132 O'Doherty
Circuit, Nudgee,
QLD 4104
4 2 3 400 July 2017 685,00
0
(PlaceEstate.com)
6 13, Conlan Street,
Nudgee, Brisbane,
QLD 4104
4 2 2 604 June 2017 645,00
0
(Place Estate
Agents, Nundah,
2017)
7 77 Forrest Street,
Nudgee, Brisbane,
QLD 4104
4 2 2 857 June 2017 775,00
0
(PlaceagentEstate.c
om, 2017)
8 Lot 29, 78 Weyers
Road , Nudgee,
Brisbane, QLD 4104
4 2 2 809 Septembe
r 2017
733,38
7
(Vantage Homes,
QLD, 2017)
The median price of these houses is AUD 685,000. This is less than 5% difference than the
property valued in this report. The median price should be the minimum price for the property
being values.
Given below are some of the appraisals provided by real estate agents. These appraisals have
been taken from secondary source but can be considered reliable since they have been taken
from real estate agents.

Table 4 Secondary Data regarding Real Estate Agent Appraisal of the Property
Source: Prepared by Author.
Appraisal
Provider
Valuation Link to Appraisal
Real Estate
View,
Australia
AUD
724,333
https://www.realestateview.com.au/property-
360/property/46-overlea-street-nudgee-qld-
4014/
Real Estate AUD
715472
https://www.realestateview.com.au/property-
360/property/46-overlea-street-nudgee-qld-
4014/
17. Annexure
a) The price of the property is being pegged at the price of the property
located at 23, Overlea Street, Brisbane 41004 in August 2016 since the
location and physical layout of the property bear the closes
resembalance to the property being evaluated. The annual growth rate is
take at 6 percent per annum. Calculating the price of the housing for
1.25 years, the price of the property can be calculated at 72610 0.
b) Similarly, the house was previously sold at 620,000 in September.
Compounding this price at the annual rate of 9.7, 9.9, 6.0 , we get the
following estimates. However, these growth rates are generalized for the
city of Brisbane and may not be the best estimates. Hence, these
estimates can be taken as the maximum estimates.
Table 5 Project House Prices based on Land Evaluations Trends in Growth Prices of Housing in Brisbane
Source: Prepared by Author.
2014 2015 2016 2017
Brisbane 620,000 680, 140 747473 792321
c) The median price of similar houses in the suburb. Calculated using
formula for Median.
Bibliography
Abdul-Samad, H. (2017, June 27). The 3 Main Property Valuation Methods. Retrieved October 20, 2017,
from Nelson Brothers: www.nelson-brotherspm.com/3-main-property-valuation-methods/
Brisbane City Council. (2017, May 19). Brisbane City Plan2014 Mapping: Zoning Maps. Retrieved from
https://www.brisbane.qld.gov.au/planning-building/planning-guidelines-tools/brisbane-city-plan-2014/

city-plan-2014-mapping/zoning
Place Estate Agents. (2017). 77, Forest Street, Nudgee QLD 4015. Retrieved from
https://www.domain.com.au/77-forrest-street-nudgee-qld-4014-2013809256
Place Estate Agents, Nundah. (2017). 13 Conlan Street, Nudgee QLD 4014. Retrieved from
https://www.domain.com.au/13-conlan-street-nudgee-qld-4014-2013617100
PlaceagentEstate.com. (2017). 80 Forrest Street, Nudgee QLD 4014. Retrieved from
https://www.domain.com.au/80-forrest-street-nudgee-qld-4014-2013564585
PlaceEstate.com. (n.d.). 132 O'Doherty Circuit, Nudgee QLD 4014. Retrieved from
https://www.domain.com.au/132-o-doherty-circuit-nudgee-qld-4014-2013643497
Queensland Government. (2017, March 8). Historical Trends in Land Valuation. Retrieved October 20,
2017, from Queensland Government: https>//www.qld.gov.au/environment/land/title/valuation/trends
Queensland Government. (2017, September). Statutory Valuation Procedures and Practices under the
Land Valuation Act 2010. Retrieved from
https://www.dnrm.qld.gov.au/__data/assets/pdf_file/0011/35966/stat_val_manual.pdf
RealEstate.com.au. (2017). Place Estate Agents. Retrieved from
https://www.realestate.com.au/sold/property-house-qld-nudgee-121561326
Reserve Bank of Australia. (2017, February). Box A: The Pipeline of Residential Dwelling Work . (Reserve
Bank of Australia) Retrieved September 11, 2017, from Statement on Monetary Policy – February 2017:
http://www.rba.gov.au/publications/smp/2017/feb/box-a-the-pipeline-of-residential-dwelling-
work.html#fn3
Vantage Homes, QLD. (2017). Lot 29, 78 Weyers Road, Nudgee. Retrieved October 20, 2017, from
www.ksouhouse.com: www.ksouhouse.com/p.php?q=Nudgee