VALUATION OF…
Social Housing
Subsidised or affordable rental housing, valued having regard to regulated rental levels and social housing institution covenants.
Content status: Methodology and evidence log — Sources, Caselaw and Market Information are added incrementally.
Methodology
Social housing is generally valued using the Income Capitalisation Method, applied to the regulated or subsidised rental achievable rather than open-market rental, given that rental levels are typically constrained by the applicable social housing programme or institution.
Under the Big Five framework, the Income Generating Units are the individual units within the development; contract rental is compared not to open-market rental but to the regulated rental band applicable to the scheme, and the capitalisation rate applied reflects the covenant of the social housing institution or subsidy mechanism, which is often government-linked and lower-risk than open-market residential letting.
Because social housing rarely transacts on the open market, a Direct Comparison cross-check should be drawn from sales of comparable social or affordable housing developments specifically, rather than from open-market residential sales, which would materially overstate value.
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 Social Housing — 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.