The extent and limitations of local commercial property market data

Abstract

IntroductionProperty analysts and researchers have a fundamental requirement for reliable property market data. Historically, data on the commercial and industrial property market are weak, but a number of property indices have now been published for 20 years. These time series are now becoming just long enough to undertake meaningful econometric analysis. There has been considerable debate concerning the appropriateness of these published property data sources and the extent to which confidence can be placed on research which depends on such sources. Morrell (1991), for example, has dissected the composition of the main property indices and their statistical relationships.This paper seeks to consider the form and the nature of spatial property data, and to examine the implications for their interpretation and analysis. A particular focus is the use of property valuations as perhaps the most important question mark over the use of these data. Throughout the paper there is continuous reference to commercial property. Following the Society of Property Researchers (1995), this term refers to property designed for business use and encompasses shops, offices and industrial units.Our primary concern is the provision of statistical information on rental values and yields (and the associated capital values and returns that can be derived). There is only marginal discussion of other indicators of demand-andsupply flows as these are available on a spatially and temporally limited basis.

Sources and reliability of property market information for property valuation practice in Ghana

“…This decision-making relates to issues such as: sale, purchase and letting of properties; real estate investment and management; compulsory purchase of land and properties; real estate taxation and insurance; real estate inheritance and settlement; asset sharing, allocation and re-allocation; and government divestiture and privatisation programmes. Although several factors inform professional and ethical property valuations, availability of reliable and quality property market information is perceived as very significant (Peto, 1997;Dunse et al, 1998;Gilbertson and Preston, 2005;Ge and Harfield, 2006). Indeed, Brown (1992) notes that valuations are a function of market information.…”

“…The impact of adequate and reliable property market information on the production of professional and ethical valuation for real estate transaction decision-making is very significant (Dunse et al, 1998;Ge and Harfield, 2006;Mends, 2006). Inadequate and unreliable market data has a high tendency to lead to the production of inaccurate valuations.…”

A Regional Perspective on the Impact of the Privatisation of the UK Public Industrial Property Stock

“…The approach undertaken was to assemble factual information from a range of sources, but inevitably there are gaps in the evidence. These problems are discussed in detail by Dunse et al (1998), who also draw out the distinctions in the property market between`prime' and`secondary' property. Investment by financial institutions is focused on the prime property, and companies and individuals tend to own secondary property.…”

Organ Laundering in Nigeria, Socio-Psychological Implications

“…Accuracy is a problem because of the fundamental heterogeneity of all property market data. (Dunse, et al, 1998) posits that the unique location every building occupies, the physical design, neighborhood qualities, and such factors as convenience as measured by the distance to the city centre or public services all create measurement problems which have not been solved to-date.…”