Start Date
26-6-2024 9:15 AM
End Date
26-6-2024 10:30 AM
Description
In the past, the City of Cape Town has been valuing its residential sectional title properties on a scheme by scheme basis. Now, as the data gets more complete and more accurate, the City is now exploring the use of regression modelling as an alternative approach. The purpose of this presentation is to highlight the differences between sectional title regression modelling approach and the scheme by scheme valuation approach. The main difference between the two approaches is in how the sales are utilised in each case. This difference also results in differences in the values that are produced. Our experience has taught us that the most important factors of residential sectional title valuation are accuracy and uniformity within the scheme. A methodology that produces accurate values and at the same time maintaining uniformity within the scheme is most preferred.
Recommended Citation
Kahonde, Justine and Ntuta, Sindiso, "A comparative analysis between regression modelling and scheme by scheme valuation of residential sectional title properties in the City of Cape Town" (2024). Mass Appraisal Valuation Symposium. 3.
https://researchexchange.iaao.org/mavs/mavs2024/sessions/3
A comparative analysis between regression modelling and scheme by scheme valuation of residential sectional title properties in the City of Cape Town
In the past, the City of Cape Town has been valuing its residential sectional title properties on a scheme by scheme basis. Now, as the data gets more complete and more accurate, the City is now exploring the use of regression modelling as an alternative approach. The purpose of this presentation is to highlight the differences between sectional title regression modelling approach and the scheme by scheme valuation approach. The main difference between the two approaches is in how the sales are utilised in each case. This difference also results in differences in the values that are produced. Our experience has taught us that the most important factors of residential sectional title valuation are accuracy and uniformity within the scheme. A methodology that produces accurate values and at the same time maintaining uniformity within the scheme is most preferred.
