A contemporary exposition of market value of investment real estate

This study examines the perceived problem of variances in the assessment of market value of investment real estate in Australia. It concludes that differences in the interpretation of concepts of market value and inconsistencies in valuation approaches exist. A new definition of market value is proposed by the author as a prerequisite step to clarifying the concept of market value. Types of valuation variance are described and classified by the author as systematic and unsystematic variances. Thereafter methodology is postulated to minimise the valuation variance, and practical investment valuation models are described which are based on market studies. The applicability of the models is demonstrated in case studies of major investment properties and the results of evaluations of the models and case studies by valuation practitioners and academics are described in the final section of this study