VALUATION OF…
Residential Property
Standard freehold residential dwellings, valued primarily by Direct Comparison against comparable sales.
Content status: Methodology and evidence log — Sources, Caselaw and Market Information are added incrementally.
Methodology
Standard freehold residential property is valued primarily using the Direct Comparison Method, applying adjustments for size, condition, location and amenity against sales of comparable dwellings in the same suburb or node. The Income Capitalisation Method is generally used only as a cross-check where the property is let.
The Big Five framework is not directly applicable to owner-occupied residential property in the way it is to commercial income property, since there is generally no income stream to analyse; instead, the equivalent analysis is a like-for-like comparison of comparable sales, adjusted for differences in erf size, building size, condition, finishes and locational factors such as school zoning and security.
Where the dwelling is let, an Income Capitalisation cross-check — applying a market-derived gross or net yield to the achievable rental — should be used to test the Direct Comparison valuation, particularly in buy-to-let-dominated nodes.
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 Residential Property — 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.