VALUATION OF…
Plant and Machinery
Movable plant and equipment, valued separately from the immovable property they serve.
Content status: Methodology and evidence log — Sources, Caselaw and Market Information are added incrementally.
Methodology
Plant and machinery are valued separately from the land and buildings they occupy, generally using the Cost Approach (Depreciated Replacement Cost), since a functioning secondary market for used, installed plant is often limited. Where an active secondary market exists for a specific asset type, Direct Comparison of comparable machine sales is preferred.
The Big Five framework, developed for immovable income-producing property, does not translate directly to plant and machinery: there is no Income Generating Unit or market rental analysis in the usual sense. Instead, the valuer identifies each major item or production line, assesses its replacement cost new, and applies physical, functional and economic depreciation having regard to age, condition, technological obsolescence and remaining useful life.
Installation and commissioning costs are included in the replacement cost base, while removal or relocation costs are considered separately where relevant to the basis of value. Where available, a Direct Comparison cross-check against sales of comparable second-hand plant should be used to test the DRC valuation.
Caselaw
Case law, regulatory rulings and expert-determination disputes relevant to valuing this asset class. Each entry cites its source and summarises the practice implication for valuers — this is not investment, financial, or legal advice.
The Evidence Log is for VDH Members
The Evidence Log for Plant and Machinery — sourced sales, disposals and rentals with Valuer’s Lens commentary — is included in VDH Membership: from R125/month for SACPVP candidates and students, R399/month standard. All prices include VAT.
The methodology and case law on this page remain free to read.