VALUATION OF…
Student Accommodation
Purpose-built and converted student housing, valued on bed count, occupancy, and rental per bed.
Content status: Methodology and evidence log — Sources, Caselaw and Market Information are added incrementally.
Methodology
Purpose-built student accommodation is an operational property type, typically valued using the Income Capitalisation or Discounted Cash Flow Method applied to bed-based income, given its trading characteristics and annual leasing cycle tied to the academic year.
Applying the Big Five framework, the Income Generating Units are individual beds or units, together with ancillary income such as parking and laundry facilities. Contract rental — usually agreed annually per bed — is compared to market rental for comparable accommodation in the same node relative to a tertiary institution, a vacancy allowance is applied with specific regard to the academic calendar and re-letting risk between intakes, and the capitalisation rate reflects operator covenant, proximity to campus and building quality.
Occupancy achieved during the academic year and proximity to the relevant institution are the dominant value drivers. A Direct Comparison cross-check on a rate per bed, drawn from sales of comparable purpose-built student accommodation, should be used to test the primary 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 Student Accommodation — 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.