Property Valuation Report: 13/82 Gateway Boulevard, Epping

This property valuation report assesses the market value of 13/82 Gateway Boulevard, Epping, VIC 3076. The report, prepared for a potential buyer, estimates the property's value as $200,000 based on a direct market comparison approach. It details property analysis, including physical, legal, location, environmental, and psychological characteristics. The report evaluates alternative uses, selecting the current use as a café/restaurant, and predicts the price using comparable sales data. Adjustments were made for differences in property size and features. The conclusion highlights the market value, transaction zone, and limiting conditions, providing a comprehensive overview of the valuation process. The report recommends a thorough review and debriefing session for further discussion.

Running head: PROPERTY VALUATION REPORT
PROPERTY VALUATION REPORT
13/ 82 Gateway Boulevard Epping, VIC 3076
Abstract
The purpose of this report is to undertake the property valuation of 13/ 82 Gateway
Boulevard Epping, VIC 3076 at market value or probable price.

1PROPERTY VALUATION REPORT
13 December 2017
Regarding: Property at 13/ 82 Gateway Boulevard Epping, VIC 3076
Dear Client,
This complies with your request, that the completed valuation analysis and researched market
data has been undertaken for the above property.
The purpose of this report is to estimate the market value of the subject site on the date of
inspection conducted on 10th December 2017 for the purpose of pre-purchase. A direct market
comparison method was used, as it is the most relevant one.
Based upon the analysis conducted from the available information, the Market Value of the
site as described herein, as of 10th December is considered to be:
$200000
Two Hundred Thousand Dollars
The transaction zone lies between $150000-300000
The report will provide the reader through valuation process and also provide the summary of
documentation, reasoning and support in arriving at the given estimated value. It will also
suggest the alternative use. Hence, it is recommended that a complete review of the report be
done. It is also suggested that a debriefing session is undertaken so that the matter can be
discussed fully.
I am looking forward to hearing from you,
Sincerely,
(Name of the Student)

2PROPERTY VALUATION REPORT
Table of Contents
1 Executive Summary................................................................................................................3
1.1 Summary of Facts and Conclusions............................................................................3
2. Problem Analysis & Value Definition...................................................................................4
2.1 Reason for the Valuatipn..................................................................................................4
2.2 Evaluation Date................................................................................................................4
2.3 Assumption from Client...................................................................................................4
2.4 Defination of Interests To be valued................................................................................4
3 Property Analysis................................................................................................................4
3.1 Physical Charactersitics...............................................................................................5
3.2 Legal Characterisitcs...................................................................................................6
3.3 Location Characterisics...............................................................................................7
3.4 Environmental Charactersitics.....................................................................................7
3.5 Psychological Characterisitcs......................................................................................8
4 Evaluation of Alternative Uses and Selection of Probable Use..............................................9
4.1 Possible Alternative Uses.................................................................................................9
4.2 Selection of Probable Use..............................................................................................10
5 Price Prediction.....................................................................................................................10
5.1 Most Probable Buyer......................................................................................................10
5.2 Methodology to Predict the Price...................................................................................10
5.3 Comparable Sales...........................................................................................................11

3PROPERTY VALUATION REPORT
5.4 Results-Probable Price...................................................................................................14
Conclusions..............................................................................................................................14
6.1 Limiting Conditions.......................................................................................................14
7 Appendix...............................................................................................................................16
References................................................................................................................................18

4PROPERTY VALUATION REPORT
PROPERTY VALUATION REPORT
1 Executive Summary
Primary as well as secondary sources were used in the analysis, which is present in the report.
The secondary data was used in gathering the information with respect to the demand, sales
price, demographic and trends.
1.1 Summary of Facts and Conclusions
Subject Property Address 13/82 Gate way Boulevard Epping, VIC 3076
Type of property Commercial Retail Space
Ownership Private
Date of Value 13th December 2017
Physical Attributes Land Size: 154 m2
Legal Attributes No restrictions on Title
Within the Commercial 1 Zone
Location Attributes Close to trains and buses
Close to amenities and shops
Psychological Attributes The suburb consists of families and young
individuals
High market demand
Probable Use Café/ Restaurant
Probable Buyer Investor
Initial price transaction zone Transaction Zone 150000-200000$
Adjustments NA
Adjusted price and transaction zone Market Value- 200000$

5PROPERTY VALUATION REPORT
2 Problem Analysis & Value Definition
2.1 Reason for the Valuation
The main aim of the report is to estimate the current market value of the subject size on
behalf of the client who is a potential buyer.
2.2 Evaluation Date
The date that the property was inspected is as follows:
Date of Valuation 13th December 2017
Date of Inspection: 10th December 2017
2.3 Assumption from Client
The client specification states that he would like to buy the property for retail purpose of a
café or restaurant.
2.4 Definition of Interests to be valued
The site is located at 13/82 Gateway Boulevard Epping, VIC 3076.
2.5.1 Items to be excluded in the valuation
A small shed is available just beside the property and needs to be excluded from the valuation
process.
3 Property Analysis
This section of the report will be analyzing the property in terms of the productivity. The
advantages and the disadvantages will be weighed upon and a brief analysis of the alternative
use of the property will be provided.
3.1 Physical Characteristics
3.3.1 Site Description
The following property has been identified on the site:

6PROPERTY VALUATION REPORT
Property
Address 13/82 Gate way Boulevard Epping, VIC 3076
Type Retail (Commercial)
Description Commercial retail Space occupying one floor
Current Owner Private owner
The site is rectangular and is already build in the form of a café or a restaurant. The
approximate area of the land is 154m2. Refer to Appendix 1.
The site has other retail blocks near it and the property is facing a road.
3.1.2 Improvements
Building Improvements
It has been erected on site. The property is in the form of a long rectangle with the
property in subject being the front part of the property. The property is well maintained
however, it requires modifications and renovation. Its current fittings are like a café
facing the road ahead. The café has the capacity of outdoor usage. There are six onsite
parking spaces available
Non- building Improvement
These improvements include a metal fencing, a concrete driveway and a path near the
front door. There are some services linked to the site such as water, sewer and electricity.
3.1.3 Conclusions
The site consists of certain beneficial features that have affected the valuation of the site.
These include:
 Retail tenancies
 Onsite parking space
 Developed infrastructure
 Corner front facing site
** Refer to Appendix for images of the site.

7PROPERTY VALUATION REPORT
3.2 Legal Characteristics
3.2.1 Restrictions on Title
The title was not available and hence, made subject to the land and the title is unrestricted
by an easements or other planning restrictions, which may have otherwise affected the
value
3.2.2 Current Lease
The property is under a single lease plan. This would contribute to the cash flow of the
property
3.2.3 Town Planning Constraints
Gen Eira council is the authority responsible for the planning. The site is under the
Commercial 1 zone with its outline under the clause 34 o the planning scheme. The site is
also under a car-parking overlay.
A clause states that the height should not exceed 9 meters.
3.2.4 Political Factors
The re-development of the train station is under construction, which is being
funded by the government. The traffic flow and noise will be present.
3.2.5 Conclusions
It can be said that the site has the potential to be build up to two storeys.
3.3 Location Characteristics
3.3.1 Regional Location
The site is located in Epping, which is near the suburbs, which are developed in
nature and mature.
The road nearby is a major access way for various transportation facilities. There
are various Retail shops, Primary school, and hospitals located nearby.
3.3.2 Conclusions
Epping is a mature and well-serviced suburb. The site benefits from being located in the
locality and is near to various amenities like parks, schools, restaurants and shops.

8PROPERTY VALUATION REPORT
3.4 Environmental Characteristics
3.4.1 On site factors
The side yards are clear and the site is surrounded by other buildings. Other
environmental characteristics were difficult to determine. Hence, it is assumed that there
are no hazards present
3.4.2 Off-site Factors
The site is independent and has no such impact on the community.
3.5 Psychological Characteristics
3.5.1 The Locality
Epping can be categorized as an upcoming suburb where various buildings are re-
developed. The locality mostly consists of younger generation families and
children.
3.5.2 The Property
The property is in a reasonable condition.
When the train lines will be developed, it will increase the desirability of the area.
3.5.3 The market
The property market in Epping mostly consists of renters.
Epping has become a popular suburb where the renters have priced their property
at 150000$ approximately. The prices have remained steady over the last few
years.
According to sites like realestate.com.au, Epping has a higher market demand in
Victoria for the specialized rent properties.
3.5.4 Conclusions
The people living in Epping are young or family’s majority of whom are renters.
The market has a lower risk of investment and has a high demand.
4 Evaluation of Alternative Uses and Selection of Probable Use
4.1 Possible Alternative Uses
As per findings the other uses can be:

9PROPERTY VALUATION REPORT
 Keeping the site as it is. It is in the form of a restaurant and can be kept that ay
 Redevelop into mixed use of a retail shop with the café to attract more customers.
4.2 Selection of Probable Use
As per the client requirement, the property would be kept as it is and that it will be the
probable use of the site. Therefore, the valuation following, will be assuming the same.
5 Price Prediction
The section comprises of a detailed analysis of valuation based on the conclusions of
the previous findings for use and analysis of property.
5.1 Most Probable Buyer
The most probable buyer is a person who would be looking out for an investment opportunity
in terms of capital growth and rental return. The site has extensive potential for development
later and hence, the developers could fit in the position of the likely buyer for this site.
5.2 Methodology to Predict the Price
This section aims to give a supported analysis of the site specific to the real estate economic
characteristics. Usually, it is the duty of the valuer to study the property from the traditional
approach to value analytics such as income, cost and sales comparison.
The direct market approach is found to be the most appropriate approach for his method and
hence it will be used to predict the market value of the given property.
The following has been conducted while preparing the valuation:
 Inspection of the site in the subject and the neighborhood.
 Sales and inspection of each comparable along with the confirmed sale and rental ,
 Confirmed data and application of the Sales Comparison Approach to value.
 Adjusted the results for the probable differences
 Compared the price per m2 of building are to come to an estimate rate

10PROPERTY VALUATION REPORT
5.3 Comparable Sales
From the given table it can be witnessed that the comparable range of the price per building
area is 3700-6900$/m2 which is unadjustable. The price per building has been used as a
comparison variable rather than the price of land. Adjustments will be made later.
5.3.1 The comparable properties are as follows:
No
.
Address Compara
ble
Sale
Date
Attribut
es
Area Price
1 2a/719 High Street, Epping, Vic 3076 Parking
available
Retail area
Similar
area
October
30 2017
Parking
available
Main
Area
Single
area in a
building
135m
2
571429$
2 1/8 Childs Road, Epping, Vic 3076 Similar
layout
Similar
frontier
Decemb
er 6
2017
Parking
available
Main
exposure
80-
100m
2
400000$
3
Epping street
Larger in
size
Parking
space
available
Novemb
er 13
2017
Parking
available
Near the
main
road
850m
2
220605$
(net rental
pa)

11PROPERTY VALUATION REPORT
5.3.2 Assumptions
The above comparisons have been used assuming that the client would be retaining the site as
it is shortly
The size has a unique size and therefore it is difficult to find exact size of site.
Transacted at arm’s-length
5.3.3 Adjustments
Market condition (Date of Sale)
Market condition often tends to change between the sale dates and effective date of valuation.
The conditions tend to vary with respect to economic conditions, inflation rates and effective
demand. The adjustment is made based on market conditions and not depending on the actual
time between the date of valuation and the sale date. Therefore, if market conditions have not
changed then no adjustment us required. In this case, the market conditions have been
similar in the last few years and therefore no such adjustment is required.
Quality
The above stated examples are of similar condition and therefore no adjustment is required in
this case.
Building area
All the properties, which have been compared of different areas and need to be adjusted to be
comparable.
Address Building area Reason to
adjust
Indicated
adjustment
1. 2a/719 High
Street,
Epping, Vic
3076
135m2 Very similar 0%
2. 1/8 Childs 80-100m2 Smaller area +18.5%