Understanding the Property Valuation Process in Queensland
Whether you’re buying, selling, refinancing, or resolving a legal matter, a professional property valuation is essential for understanding the true market value of a residential or commercial asset. In Queensland, property valuations must be carried out by registered valuers in accordance with state legislation and industry standards.
Property Valuation Process
Steps in the Valuation Process
1. Instruction and Scope
The process begins when the client engages a valuer and outlines the purpose of the valuation. The valuer confirms the property type, valuation requirements, and any special considerations, ensuring the assignment complies with the Australian Property Institute’s (API) standards and Queensland law.
2. Inspection
The valuer conducts a physical inspection of the property. This includes examining the land size, building condition, improvements, layout, accessibility, and compliance with local council regulations. For commercial properties, rental income and lease agreements are also reviewed.
3. Market Research
The valuer collects and analyses recent comparable sales or leases in the local area, along with economic trends, planning constraints, and zoning under the Planning Act 2016 (Qld) and Gold Coast City Plan.
4. Valuation Methodology
Depending on the property type and purpose, one or more of the following valuation methods may be applied:
- Direct Comparison Approach – commonly used for residential properties
- Capitalisation of Income – used for income-producing commercial assets
- Summation Method – considers land and building values separately
- Discounted Cash Flow (DCF) – used for complex, high-value investments
5. Valuation Report
The final report includes:
- A detailed property description
- The valuation methodology used
- Supporting market data and analysis
- Any assumptions or limitations
- The concluded market value
The report is signed and certified by the valuer and may be relied upon in legal, financial, and tax-related matters.
