SRQ764 Project Valuation: Geelong Apartment - Detailed Report

This project valuation report assesses the market value of an apartment located at 102/64-66 Eastern Beach Road, Geelong, Victoria. Commissioned by Mr. & Mrs. James and Pamela Wright through McGrath Real Estate Company, the valuation employs a direct market value comparison method, adhering to International Valuations Standard Committee guidelines and Australian Property Institute standards. The report details the property's features, location advantages, and potential risks, considering factors like accessibility, zoning, and nearby landmarks. The final valuation estimates the property's market value at $1,150,000 as of summer 2018, based on site inspections, market analysis, and client assumptions regarding improvements and environmental factors.

Project Valuation Report 1
PROJECT EVALUATION REPORT
By
Course
Professor
University
City, State
Date

Project Valuation Report 2
Table of Contents
Executive Summary..........................................................................................................................3
Letter of Transmittal........................................................................................................................4
Letter to client..................................................................................................................................6
Introduction.....................................................................................................................................8
Reason for Valuation.......................................................................................................................9
Client Assumptions..........................................................................................................................9
Site details......................................................................................................................................11
Description of the Property...........................................................................................................13
Risks Involved................................................................................................................................14
Advantages of the Project..............................................................................................................15
Methodology..................................................................................................................................15
Definition of Value.........................................................................................................................15
Definition of Interest to Valued.....................................................................................................17
Valuation Date...............................................................................................................................17
Conclusion.....................................................................................................................................17
Biography......................................................................................................................................19

Project Valuation Report 3
Executive Summary
Property Address 102/64-66 Eastern Beach Road, Geelong, Vic 3220
Property Type Luxurious Waterfront Residential Apartment
Instruction Mr. & Mrs. James and Pamela Wright, through their real estate agent
McGrath Real Estate Company
Type of Ownership Private
Date of Valuation 3rd of August, 2018
Features Area:6249 sq.m.
Location attributes Walking distance from the CBD and recreational centers
Second street from the sparkling waters of the bay
Environmental aspects Free from environmental risks
Surrounded by trees and a garden
Adjustments The site has been improved with concrete and precast concrete
features. It also has quality features and fixtures, as well as the
electrical appliances fitted within the house
Interested Values simple fee of 5%of the valuation value
Market Value $1,150,000.

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Letter of Transmittal
Macy Banks
File No: 712453
Client #00354
RE: Valuation of 102/64-66 Eastern Beach Road, Geelong, Vic 3220
Dear Mr. Brown,
Please note the receipt of this letter as a confirmation for the completion of the building valuation
and appraisals of the above named apartment in the Geelong Region, Victoria. The appraisal was
completed using the direct market value comparison method which considers property sales of
the nearby property while the uniform standards of Professional Appraisal Practice were strictly
followed in the writing of this report. Other aspects that played a key role in settling on the figure
proposed include the location of the property, and its zoning, the accessibility of the property
form different transport system methods. Landmarks around the area and factors that increase the
value of the property were also considered in this valuation exercise.
My opinion of the property is that it can be valued for:
$1,150,000
as at summer of 2018. This opinion is limited by the conditions of certifications.
Regards,

Project Valuation Report 5
Ms. Macy Banks
Signature

Project Valuation Report 6
Letter to client
25th August, 2018
Macy Banks
File No: 712453
Client #00354
RE: Valuation of 102/64-66 Eastern Beach Road, Geelong, Vic 3220
Dear Mr. & Mrs. Wright,
This is to notify that the valuation of your property for purposes of establishing the market value
of the property has been successfully completed. The appraisal was conducted using the direct
market value comparison method which considers property sales of the nearby property while
the uniform standards of Professional Appraisal Practice were strictly followed in the writing of
the report. Other aspects that played a key role in settling on the figure proposed include the
location of the property, and its zoning, the accessibility of the property form different transport
system methods. Landmarks around the area and factors that increase the value of the property
were also considered in this valuation exercise.
My opinion of the property is that it can be valued for:
$1,150,000
as at summer of 2018.

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It has been a great pleasure working for you in this project of valuing your property in the
Geelong region. N case of any problem, please do not hesitate to reach me on my phone or
email, so I see how I can be of additional service to you.
Regards,
Ms. Macy Banks
Signature

Project Valuation Report 8
Project Evaluation Report For An Apartment in the Geelong Region
Introduction
During this exercise, Highland Valuers Company has been instructed by Mr. & Mrs. James and
Pamela Wright, through McGrath Real Estate Company to conduct a property appraisal exercise.
The appraisal was conducted using the direct market value comparison method which considers
property sales of the nearby property while the uniform standards of Professional Appraisal
Practice were strictly followed in the writing of the report. The valuation exercise was also
conducted according to the definitions of the International Valuations Standard Committee
which have been adopted by the Australian Property Institute (Kunis, 2015, p. 12). These
definitions include;
 The Highest and best use which indicates the utilization of an asset in order to optimize
the potential of the property to a financially feasible and legally permissible option. This
ensures that the property is used in the most probable and highest use from the date it is
valued.
 The rent of the property in the market which is the estimated figure for which real
property should be leased at from the date it has been valued. The two parties should
have agreed at on the price after marketing in a transaction that happens without any of
the parties being compelled to participate.
 The market values on the other hand refer to the price at which a property should be
exchanged for following a valuation where the parties agree and act prudently. This
value consists of the prices of the fixtures of the building including the equipment and
plant within it, as well as the fittings

Project Valuation Report 9
Other aspects that played a key role in settling on the figure proposed include the location of the
property, and its zoning, the accessibility of the property form different transport system
methods. Landmarks around the area and factors that increase the value of the property were also
considered in this valuation exercise. The passing yield which is the %price from the current
passing net income, such that no chance is allowed for the rent to grow in the future also
contributes to the value of the property. Another factor is the equivalent yield which is the annual
yield obtained from the current net income and any expected future changes to the net income
over time such that no chance is allowed for the rent to grow in the future . This thus implies that
the yield is the rate of return of a net income stream over given time in order to that reflects
current rents and costs and current levels of rental values (Morey, Shaw, and Rowe, 2011, p.
197). Finally, the market yield is also considered which refers to the percentage price from the
assessed market net income such that no chance is allowed for the rent to grow in the future thus
contributing to the value of the property.
Reason for Valuation
The goal of the appraisal was to give the company and the couple an opinion about the market
value of their property. The owners wanted to know this values so they could be able to account
for the value of the property, and incase a mortgagee was interested in the property, the couple
would be able to come up with a reasonable mortgage security deal (Andrews and Moore, 2017,
p.271).
Client Assumptions
 The report findings will be based on the evaluation of current market value and
consideration improvements.
 Any instances that may affect the market value that are not considered in this evaluation
ought to be clarified with the valuer whether or not they affect the project.

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 All the valuations have been done after the valuer has physically inspected the site and
identified the boundaries of the property.
 All the information provided in this appraisal report is confirmed with qualified
surveyors who have the mandate of giving the identification survey.
 Any doubts arising from the appraisal can be confirmed following the guidance of a
qualified surveyor who can advice if the valuation exercise is impacted.
 Should the report be found erroneous, the matter should be referred back to the valuation
company who shall review the valuation (Reed, 2015, p.9).
 The valuation exercise shall not include any soil or environmental impact assessments or
reports.
 The report also assumes that there are no environmental issues on the property that may
impact the value of the property either through surface or subsurface problems on the
property. It also does not consider hazardous or toxic wastes, risks associated with
building material on site, or even explosive material that may still have not exploded.
This is because any considerations of these factors may negatively affect the market
value of any property, or even its use. This will most definitely have a significant effect
on the value of property when considered during assessment. The occurrence of such
matters on the land are thus not accountable to the valuer, unless the value has confirmed
that the ordinance will not affect the property.
 The information utilize to conduct this appraisal has been obtained from the City Council
of Victoria and thus the valuer cannot be accountable for the inaccuracy of this
information.

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 The valuation considers the improvements made on the land currently, their compliance
to the regulations and laws of the rightful authorities as well as the approval of the use of
the building
 The valuation also ought to consider structural and service installations of the
improvements indicating the capital expenditure of the improvements (Cooper and
Henderson, 2017, p. 577)
Site details
The property is located close to two main facilities, namely the Friends of Geelong Botanic
Gardens and the Eastern Beach Recreation reserve. This means that the property can easily be
accessed using the Eastern Beach Road and the Hearne Parade which leads to the Geelong Play
Space and the Friends of Geelong Botanic Gardens (Georges and Clive, 2012, p.130).

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The property sits on an area of 6249 sq. m. with two storeys and surrounded by a serene beach.
The land has been improved since 1979 with precast concrete and concrete masonry luxury and
prestigious residential apartment. According to our valuation, the building provides A plus
quality luxury residence. The property can be accessed from Eastern Beach Road, Brougham
Street, and Alexandra Avenue, when coming from different directions of the city.