A property valuation isn’t just a random figure—it’s based on a detailed analysis of multiple factors. Property valuers in Melbourne use specific methodologies to assess a property’s market value, ensuring accuracy for homeowners, investors, lenders, and legal professionals.
Main Property Valuation Methods
Direct Comparison Approach
(Most Common for Residential Properties)
Property valuers compare recently sold properties with similar attributes in the same suburb. Factors like land size, structure, renovations, and location appeal all influence valuation.
Capitalisation Approach
(Used for Investment & Commercial Properties)
For income-generating properties, such as rental apartments, retail shops, and office spaces, valuers assess market value based on rental income, lease agreements, and investment returns.
Summation Approach
(Used for Unique or Rural Properties)
In this method, the valuer assesses the land value separately from the building and adds up the components, adjusting for age, condition, and depreciation.
What Influences a Property’s Value?
- Location & Demand: Suburbs like South Yarra, Carlton, and Richmond command higher valuations
- Property Size & Features: Larger properties and those with renovations or premium amenities fetch higher prices
- Market Conditions: Interest rates, housing demand, and economic stability affect property values
- Zoning & Development Potential: Properties with subdivision potential or future commercial use can increase in value
Want an expert valuation? Contact Ceres Property Valuers today!