Part 6: Part 6: Principles and Practice of Property Valuation

Which of the following items would a standard valuation report generally cover? (i) Current mortgage interest rate (ii) Date of valuation (iii) Assessed value of the property (iv) Fee charged for preparing the valuation report

• A. (iii) and (iv) only
• B. (i) and (iii) only
• C. (ii) and (iv) only
• D. (ii) and (iii) only
• E. (i) and (ii) only

Under which of the following circumstances would the comparison method of valuation be considered most reliable? (i) When the overall average property prices in the market have surged by more than 50% in the past twelve months (ii) When there is a substantial and consistently stable monthly transaction volume for similar types of properties in the market (iii) When a large number of similar physical and environmental characteristics exist among a particular type of property in the market

• A. (i) only
• B. (i) and (ii) only
• C. All of (i), (ii) and (iii)
• D. (ii) and (iii) only
• E. (i) and (iii) only

The following types of properties each require a valuation. Based on the fundamental concepts of various valuation methods, in which option are all the pairings of valuation method and property type correct? (i) Urban private residential flat → Comparison method (ii) Owner-operated hotel property → Profits method (iii) Vacant development site pending development → Residual method (iv) Special-purpose government building (lacking comparable market transactions) → Contractor's method (depreciated replacement cost)

• A. (i) and (ii) only
• B. (iii) and (iv) only
• C. All of (i), (ii), (iii) and (iv) are correct
• D. (ii), (iii) and (iv) only
• E. (i), (ii) and (iii) only