DCF discounted: further implications for the valuation surveyor arising from the over-rented property debate
Reconsiders some of the market issues surrounding the over-rented property valuation problem and extends the discussion to the valuation of self-financing properties where the market yield exceeds that of long-dated stocks. Emphasizes the problem of using long-term implied growth rates in market con...
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Published in: | Journal of property valuation & investment 1995-05, Vol.13 (2), p.5-15 |
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Main Author: | |
Format: | Article |
Language: | eng |
Online Access: | Get full text |
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Summary: | Reconsiders some of the market issues surrounding the over-rented
property valuation problem and extends the discussion to the valuation
of self-financing properties where the market yield exceeds that of
long-dated stocks. Emphasizes the problem of using long-term implied
growth rates in market conditions where short-term conditions of no
growth or indeed continuing decline may have significant impact on
value. Concludes with the suggestion that those who support a DCF
approach to valuation have still to convince the market of their case.
There is also a need for further study in all areas associated with
implicit valuation and explicit DCF valuations in particular in relation
to the determination of all risk yields, determination of target rates,
assessment of market rental value and the degree to which the market can
accept valuations based on the judgement, intuition, or experience of a
valuer in times of minimal comparable market evidence. |
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ISSN: | 0960-2712 |