VALUATION OF…
Schools
Public and independent schools not captured under Private Schools, valued on institutional-use land and specialised improvements.
Content status: Methodology and evidence log — Sources, Caselaw and Market Information are added incrementally.
Methodology
Schools are specialised, institutional properties. Where let to an independent operator, the Income Capitalisation Method applies; where owner-occupied by a public or non-profit body with no market rental evidence, the Cost Approach (Depreciated Replacement Cost) of the improvements, combined with a Direct Comparison land value, is generally the primary method.
Under the Big Five framework, the Income Generating Units — classrooms, halls, sports fields and boarding facilities where applicable — are identified, though for a public or non-profit institution there is typically no contract income to compare against market rental. Functional and economic obsolescence of the specialised improvements must be assessed, and the limited pool of alternative users should be reflected in the discount or capitalisation rate applied.
As with other institutional-use property, a Direct Comparison cross-check is generally applied to the underlying land value, supported by DRC-derived replacement cost of the improvements, net of accrued depreciation.
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 Schools — 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.