VALUATION OF…
Expropriation
Property acquired compulsorily by the state, valued for compensation purposes at Market Value plus any additional compensation components required by law.
Content status: Methodology and evidence log — Sources, Caselaw and Market Information are added incrementally.
Methodology
Property subject to expropriation is valued at Market Value using the approach appropriate to the specific property type, as the primary component of compensation, with additional heads of compensation (such as injurious affection to a remainder, or solatium/hardship components where applicable under the governing legislation) assessed separately and added to the Market Value opinion.
The Big Five framework is applied in full to establish the underlying Market Value of the property expropriated, exactly as it would be for a voluntary sale; the expropriation context does not change the valuation methodology, but the valuer must clearly identify the effective date (typically date of notice or date of taking) and value the property as at that date, disregarding any effect on value caused by the expropriation itself or the underlying public project.
Where only a portion of a property is expropriated, a before-and-after valuation of the remainder should be undertaken to quantify injurious affection, in addition to the Direct Comparison or income-based valuation of the portion taken.
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 Expropriation — 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.