The legislative amendment that came into effect in 2003 meant tax free sales of business-related shares. The amendment allows for packaging of real estate in companies where the company's shares are sold tax free. Sale of limited companies is not public information, which posed a problem for property valuers because they no longer have the same access to location-priced data. This study aims to investigate if the property valuation has changed with respect to that information regarding a company transfer of real estate is not public. Ten interviews were conducted to obtain the basis for the study. The interviewees were selected to represent a broad perspective from different parts of the real estate market. It is established that all major property transactions is conducted as corporate transactions resulting in a difficulty for property valuers. Property valuation has become more extensive as the comparable sale is done as corporate transactions. Property valuers spend more time with the information collection and the analysis of comparative sales. Cash flow method and location price method is determined as the most common valuation methods. Cash flow method can sometimes considered a reconstruction after the event and cash flow method can also be seen as a location price method. Property valuers need full information about a transaction to be able to use it as comparison. This leads to the valuers consider themselves to have more knowledge than they can report. Interview responses indicate that transparency has declined due to the fact that the information retrieval has become more difficult. / Den lagändring som trädde i kraft 2003 innebar skattefri försäljning av näringsbetingade andelar. Lagändringen möjliggör paketering av fastigheter i bolag där aktierna i bolaget avyttras skattefritt. Avyttring av aktiebolag är inte offentlig information, vilket har medfört problem för fastighetsvärderare eftersom de inte längre har samma tillgång till ortsprismaterial. Denna studie syftar till att undersöka om fastighetsvärdering har förändrats med hänsyn till att information om bolagsöverlåtelse av fastigheter inte är offentligt. Tio intervjuer genomfördes för att erhålla underlaget för studien. Intervjupersonerna valdes ut för att utgöra ett brett perspektiv från olika delar av fastighetsmarknaden. Det kan konstateras att alla större fastighetsaffärer sker som bolagsförvärv vilket medför en svårighet för fastighetsvärderarna. Fastighetsvärdering har blivit mer omfattande i och med att jämförelseobjekten sker som bolagsöverlåtelse. Värderarna lägger ner mer tid på informationsinsamlingen och analysen av jämförelseobjekten. Kassaflödesmetoden och ortsprismetoden fastställs som de vanligaste värderingsmetoderna. Kassaflödesmetoden kan ibland anses vara en efterhandskonstruktion och kassaflödesmetoden kan även ses som en ortsprismetod. Värderarna behöver fullständig information om en affär för att kunna använda den som jämförelseobjekt. Detta leder till att värderarna anser sig ha större kunskap än de kan redovisa. Intervjusvaren tyder på att transparensen har minskat i och med att informationsinhämtningen försvårats.

In South Africa various financial institutions and independent vendors have developed residential property valuation models to estimate the current value of historically traded properties. A natural extension to these models has been to develop historical property price indices. In this dissertation, three of the four approaches to developing property price indices will be examined. Through back–testing and other statistical methods, the most accurate and robust approach will be determined. The four major approaches available are the mean valuation per suburb, the median valuation per suburb, the repeat sales approach and hedonic regression. The mean valuation per suburb approach can be biased because of outliers in property prices. However, outliers in property prices will not influence the median valuation per suburb approach, but in cases where property values in a suburb have a skewed distribution, the valuation amount could be distorted. Neither of the above mentioned shortcomings influences the repeat sales or the hedonic regression approach. To follow the hedonic regression approach, the characteristics of the property need to be known. In South Africa, however, the available property data lacks detailed characteristics of traded properties. This dissertation will therefore focus on the first three methods. The repeat sales approach measures the growth in property prices by applying a generalized linear model to properties that have traded more than once. This approach is only possible if there is a representative amount of repeat sales able to fit a model. The focus of this project will be on the repeat sales approach, but all three the approaches discussed will be analysed to prove that the repeat sales approach is the most accurate in developing a property price index for properties in South Africa. / Thesis (M.Sc. (Risk Analysis))--North-West University, Potchefstroom Campus, 2011.

In South Africa various financial institutions and independent vendors have developed residential property valuation models to estimate the current value of historically traded properties. A natural extension to these models has been to develop historical property price indices. In this dissertation, three of the four approaches to developing property price indices will be examined. Through back–testing and other statistical methods, the most accurate and robust approach will be determined. The four major approaches available are the mean valuation per suburb, the median valuation per suburb, the repeat sales approach and hedonic regression. The mean valuation per suburb approach can be biased because of outliers in property prices. However, outliers in property prices will not influence the median valuation per suburb approach, but in cases where property values in a suburb have a skewed distribution, the valuation amount could be distorted. Neither of the above mentioned shortcomings influences the repeat sales or the hedonic regression approach. To follow the hedonic regression approach, the characteristics of the property need to be known. In South Africa, however, the available property data lacks detailed characteristics of traded properties. This dissertation will therefore focus on the first three methods. The repeat sales approach measures the growth in property prices by applying a generalized linear model to properties that have traded more than once. This approach is only possible if there is a representative amount of repeat sales able to fit a model. The focus of this project will be on the repeat sales approach, but all three the approaches discussed will be analysed to prove that the repeat sales approach is the most accurate in developing a property price index for properties in South Africa. / Thesis (M.Sc. (Risk Analysis))--North-West University, Potchefstroom Campus, 2011.