ABSTRACT
Introduction Valuation by comparing the subject property directly with prices achieved on the sale of comparable property in the market is the preferred method of valuation for most saleable goods and services. Valuation by this method is reliable provided that the sample of comparable sales is of sufficient size to draw realistic conclusions as to market conditions. This requires full knowledge of each transaction. Such a situation rarely exists in the market for investment property and, in the absence of directly comparable sales figures, the valuer turns to the investment method. The investment method is used for valuing income-producing property whether freehold or leasehold, because as a method it most closely reflects the behaviour of the various parties operating in the property market.
