Property valuation

Property valuation Word length: 1,500words(excludingtitlespage,graphsandannexures). Based onthesaleinformation below,you arerequiredto prepareareportto verifyifthesalepriceisjustifiedbythemarketevidence.Inotherwords,youhavetousemarketevidencetoverifyifthe passingrentisatmarketlevel,andif thesale priceand yieldarereasonable havingregard tothe then market condition.Inthisregard,youneedtoaccess salesevidenceintheSydneyoffice market.UWS has subscribedtoRPData(https://rpp.rpdata.com/rpp/login.html)(andyou are allowedto assess the databaseusingthefollowing usernames and password. 1.statval01 2.statval02 3.statval03 Details Thecommercialpropertymarketisoneof themajorsectorsin theAustralian propertymarket.The marketvalueofcommercial propertiesis dependentonthe saleofsimilar properties.Thefollowingisarecent sale of acommercialproperty inSydneyCBDreportedinCommercialResearchofCoreLogic(i.e.RPData)on 4June2015. Hong Konginvestors buy North Sydney office tower for $58 million ANorthSydneyofficetowerhaschangedhandsat$58million.Theproperty,at 140ArthurStreet,NorthSydney wassoldby BevanKenny andChrisVeitchof ChestertonInternational(NorthSydney) andDominicOng andJamesParry of KnightFrankSydney.VendorwasfundmanagerCorVal,onbehalfoftheVictorian Funds ManagementCorporation(a Victorianfundwhichprovidesinvestment and funds managementservicestoVictorian publicauthorities),Funds SA(a SA fund whichmanagesandinvestspublicsector assets)andtheFutureFund(aFederal fundtohelpmeetfuture superannuationliabilities). The buyer, HKRealway,is owned byLingLWong andYunC ChoiofHongKong andis aprivatecompanythat engagesin overseas propertyinvestmentand management. Thesalefollowsitspreviouspurchasesofa13-storeyofficebuildingat309 GeorgeStreet,Sydneyanda10-levelcarparkingstationat521–527KentStreet, Sydney. AccordingtoNorthSydney Cityscope,theproperty isa17-storey officebuilding withbasementparkingwhichwascompletedin1973andrefurbishedin1996.With a building areaof 8,384sqm,the propertyhas aNABERSratingof 3.5starts. Itis fully leased and its major tenants include NSW Business Chamber, Active International andUniversityofSouthAustralia. Theproperty lasttradedat $39millioninDecember2012whichrepresentedan initialyieldof9.53%onpassingincomeof$3,727,100. Thissale, at$58 million, equatestoayieldofabout7.5%andisevidencethatthecommercialmarketis alsoperformingstronglyin this risingSydney market. Apartfromverifyingthe marketrentand marketpriceoftheproperty,youarealso requiredtocomment onwhy thesame propertyhadayield of 9.53%in 2012, but ayieldofabout 7.5%in thecurrentsale. Forthepurposeof completingthisassignment,youmaymakereasonable assumptions for relevantinformationofthepropertynotreportedbyCoreLogic. Relevantinformationfor this assignmentcanbeobtainedfrom: Newspapersand property magazines Property JournalsandNewsletters Australian BureauofStatistics Marketreports(suchasJonesLangLaSalle,ColliersJardine,CBRichard Ellis, etc.) Friends intheproperty industry Internetresources