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Residential Property Report Template –Compensation Valuation

under the Public Works Act 1981

WHY A TEMPLATE?
These Templates have been developed to
1. Assist valuers to understand the valuation process for property acquired under the Public
Works Act,
2. Ensure Valuers provide information in their valuation reports to enable good decision
making
3. Enable easier comparisons between valuation reports
4. Ensure that the valuation reports comply with current Australia and New Zealand
Valuations and Property Standards and International Valuation Standards.

The templates emphasise the obligation for valuations to be evidence based and require the
Valuer to provide supporting comparable sales evidence for all stages of the valuation e.g. the
‘Before’ valuation, the ‘After’ valuation and the assessment of Injurious Affection (if any).

HOW TO USE THIS TEMPLATE

 The report templates provide the recommended report format to be used for PWA
acquisition work.
 The structure is based on the ANZ Practice Standard 1, ANZVGN 5 and the IVS reporting
standards. http://www.propertystandards.org.nz/course/view.php?id=2
 Valuers should use the headings in the same order as the template and provide
supporting commentary at least to the level of detail described in the template.
 The valuation report is to be sent to the client as a secure PDF format (print to PDF). Do
not print and scan the valuation report.
 Valuers may tailor the template and add paragraphs and descriptions as appropriate
depending on the subject property.
 Valuers who wish to make any other changes should advise of the proposed changes in
the Scope of Works.
 Some valuation practices may have in-house templates or systems to assist in the report
writing process. The template can be used in this manner.
 All guarantees, disclosures compliance statements and disclaimers etc. are to be
attached to the report.

KEY TO TEXT

 Shaded text will need to be altered/ or deleted to reflect the subject property.
 The content and the wording of this report is an Example of a valuation complying
with IVS.
 The non-shaded text should be retained where possible as it is written to ensure
compliance with the current valuation standards.
 Note to Valuer – offer guidance as to the Transport Agency expected content and
description under that particular heading.

DISCLAIMER

 Please note that the examples used in this template (property description and
comparable sales) are fictional. Whilst we have tried to be as realistic as possible,
any resemblance to an existing property is purely coincidental.

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VALUATION FOR COMPENSATION

PURPOSES

PROPERTY ADDRESS

DATE OF VALUATION

PHOTO

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VALUATION SUMMARY

File No.

Date

Client

Landowner

Property Address

Instructed By
We refer to the written instruction from company and agreed Scope of Work of date.

We confirm that our report complies with the instructions received and scope of works, subject to
the valuation assumptions detailed in this report.

P u r p o s e o f Va l u a t i o n
State here the type of valuation requested e.g. a compensation valuation under Section 62 Public Works Act
1981 for total or partial acquisition and include if you have been requested to additional assessments
such as a rental assessment, business loss, disturbance etc.

Date of Inspection

D a t e o f Va l u a t i o n

L a n d A r e a ( To B e A c q u i r e d )

R a t i n g Va l u a t i o n
Roll Number

Land value $
Value of Improvements $
Capital Value $

Brief Property Description

Example - The subject property comprises a three bedroom brick veneer dwelling built in 1952 on an
irregular shaped site in the Edendale suburb of Hamilton. While the section is of a size capable of being
subdivided, the dwelling is built across both titles. The current use as a large residential property is
considered to be the ‘highest and best’ use.

Va l u a t i o n A s s u m p t i o n s
This assessment is made on the basis of and subject to certain assumptions which are noted as
follows;

Examples -
 Our compensation assessment has been assessed for the specific purpose of compensation under
the Public Works Act 1981 and no responsibility is accepted in the event that this report is used for
any other purpose.
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 Our assessment addresses the Market Value of the property subject to the existing tenancy
arrangements.
 We assume the boundary fencing will be reinstated by the New Zealand Transport Agency
(Transport Agency), and our compensation assessment is made on this basis.
 The valuation is based on the Land Requirement Plans provided by the instructing party and the
proposed access plans.
 This report should be read in conjunction with our previous report dated 1 April 2011.

V a l u a t i o n A p p r o a c h Direct Comparison and ‘Before and After’ approach to Valuation.

Extent of Inspection

Nature and Source of Information Relied Upon

Va l u a t i o n S u m m a r y
We assess the Compensation (including chattels), for the total property/partial acquisition of the
required land to be:

Compensation $ ,000

Apportionment of Compensation
Delete if valuation is for total purchase
Land & Improvements (GST Inclusive, if any) $ ,000
Injurious Affection $ ,000
Compensation $ ,000
Less Betterment $ ,000
Total Compensation $ ,000

Valuer

Company
Contact Details

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DISCLAIMERS, LIMITATIONS AND COMPLIANCE STATEMENT

Valuers to insert clauses that comply with IVS 103 reporting e.g.
1. Restrictions on Use, Distribution or Publication.
2. Market Movement.
3. Valuers Interest.
4. Market Value Definitions.
5. Confirmation that the valuation has been undertaken in accordance with the IVS and
Australia and New Zealand Valuation and Property Standards, in particular Australia and
New Zealand Practice Standard 1 Valuations for Compulsory Acquisitions.
6. Identification and status of the Valuer.

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TABLE OF CONTENTS

Residential Property Report Template –Compensation Valuation under the Public Works Act 1981 1
Why a Template? 1

VALUATION FOR COMPENSATION PURPOSES 2

VALUATION SUMMARY 3

DISCLAIMERS, LIMITATIONS AND COMPLIANCE STATEMENT 5

TABLE OF CONTENTS 6

VALUATION REPORT 7

1.0 Site Description 7

2.0 Land Tenure 8

3.0 RESOURCE MANAGEMENT 9

4.0 Resource Consent 9

5.0 Improvements Description 10

6.0 Proposed Acquisition 11

7.0 General Market Discussion 12

8.0 Sales Evidence 13

9.0 Valuation Approach and Reasoning 21

10.0 Compensation 22

11.0 Valuation Process 24

12.0 Valuation (Total Acquisition) 25

13.0 Valuation Conclusion (Partial Acquisition) 26

14.0 Assessment of Injurious Affection (Impact of the Work on the Retained Land) 27

15.0 Assessment of Betterment 28

16.0 Compensation Assessment 29

17.0 Concluding Remarks 30

APPENDIX I - HYPOTHETICAL SUBDIVISION Example 31

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VALUATION REPORT
1.0 SITE DESCRIPTION
1.1 Lo cat io n
 City
 Situation
 Locality
 Amenities
 Surrounding development
 Saleability of the area

Insert map to show surrounding location and position of subject property.

1.2 The L and

 Land use
 Land area and shape
 Contour and site development
 Aspect and view
 Services
 Access

Insert aerial photo of the subject property

1.3 Enviro nme nt al Fact o rs

Example - There does not appear to be any evidence of flooding, land subsidence or landslip and
to the best of our knowledge any additional proposed road works or high tension power lines
which may affect the saleability of the property. Council records have been searched to check
the site history in relation to;

 Contamination
 Earthquake prone ratings
 Weather tight issues
 Asbestos
 Other details on Council files which may impact value.

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2.0 LAND TENURE

2.1 Ce rt ifi cat e of Tit le ( 1)
Delete the number when there is only one title
 Computer Freehold Register
Identifier
 Tenure
 Legal Description/ Appellation
 Registered Proprietor
 Land Area of Affected Property
 Interests Registered on Title
The above (non-financial) registrations are noted and are not considered to materially
affect the value of the property.

Where the registrations on the title affect the market value / saleability of the subject property, the valuer
is to provide additional details. The valuer should comment on the non-financial registrations and
encumbrances only.
Comment specifically on existing Compensation Certificates registered on the title at the date of valuation.

 The Required Land Example - The land required from this title, Ref.
WNXX/XXX, is a 200 m² triangular parcel of land on
the rear boundary to be used for road widening.

2.2 Ce rt ifi cat e of Tit le ( 2)

Where the affected property is held in more than one title, list the titles separately and note the part to be
acquired.

 Computer Freehold Register

Identifier
 Land Registration District
 Tenure
 Legal Description/ Appellation
 Registered Proprietor
 Land Area of Affected Property
 Interests Registered on Title
The above registrations are noted and are not considered to materially affect the value of the
property.

Where the registrations on the title affect the market value / saleability of the subject property, the valuer
is to provide additional details. The valuer should comment on the non-financial registrations and
encumbrances only.
Comment specifically on existing Compensation Certificates registered on the title at the date of valuation.

 The Required Land

We enclose a copy [copies] of the Computer Freehold Register (refer Appendices).

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3.0 RESOURCE MANAGEMENT

 Territorial Authority
 Zoning
 Permitted Use
 Development Controls
 Heritage (if applicable)
 Designations
Comment on the range of permitted activities, the application of the District Plan to the subject property
and any possible effect on value. A long narrative of all the permitted activities in the zone is not required,
unless the subject property’s highest and best use is not the current use.

4.0 RESOURCE CONSENT

If the property is subject to a Resource Consent, please provide a full description of the details of what the
resource consent pertains to and the effect on the value of the subject property of the Resource Consent.

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5.0 IMPROVEMENTS DESCRIPTION

To follow is a brief description of the improvements and their condition, at the date of inspection
5.1 Dwe lling
 Type
 Floor Area
 Year Built (approx.) plus additions
 Levels
Insert photographs of the dwelling (front and rear views).

5.1 .1 Co nst ruct io n

 Foundations
 Floor
 External cladding
 Roof
 Joinery
 Internal linings

5.1 .2 Int e rnal L ayo ut ( includ ing fi x t ure s and fi t t ings )

 Kitchen
 Dining
 Lounge
 Bedrooms
 Bathroom(s)
 Laundry
 Hallway
 Heating
 Chattels

 Decks / Terraces
Insert photographs of the kitchen and at least two other rooms to provide a good indication of the quality of
the accommodation provided.

5.2 Ot he r Build ing s

 Garage / Carport
 Other
Insert photographs of the Other Buildings

5.3 Ot he r Imp ro ve me nts

 Site Development
 Other
Insert photographs of the Other Improvements

5.4 Co nd it io n and Rep air

Where deferred maintenance exists and remedial work is required to preserve the value of the asset, please
note this and provide an estimate (a range is acceptable) of remedial costs in the separate addendum as
requested in the scope of works.

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6.0 PROPOSED ACQUISITION

6.1 Des crip t io n o f Pro je ct
Briefly describe the project for which the acquisition forms part and include a map showing the location of
the subject property in relation to the project.

6.2 Des crip t io n o f Pro p os e d Acq uis it io n

Describe the land to be acquired, dimensions etc. Refer to the Land Requirement Plan provided.

Delete the following paragraph if the acquisition is of the entire property.

6.3 Imp act o f Acq uis it io n o n Pro p e rt y

Describe the impact of the project when completed on the retained land. This needs to include the distance
of the proposed work to any dwelling on the retained land.

Describe any mitigation work proposed and the effect of this work in relation to the retained land.

If the impact of the project injuriously affects the retained land i.e. depreciation in value caused by the
operation of the public work on completion, describe the factors that contribute to the injurious affection
e.g. increased traffic noise, loss of privacy etc.

Similarly, if the impact of the project on the retained land is positive, or creates betterment, then the factors
that contribute to the betterment are to be described.

6.4 Imp ro ve me nts o n L and to be Acq uire d

Describe the improvements that form part of the property that is being acquired.

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7.0 GENERAL MARKET DISCUSSION

Please comment on general market trends, possible evidence of changes in market trends, observations on
reported listing periods and movements thereof. The general market situation is to be related to the market
of the subject property.

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8.0 SALES EVIDENCE

8.1 Co mp arab le Sale s o f Imp ro ve d Pro pe rt ie s
8.1 .1 ‘Be f o re ’ Valuat io n ( Ig no ring t he Wo rk )
Delete this heading if valuation is for total purchase.

In some localities and / or situations comparable sales may not relate to the subject property both in the
‘Before’ scenario and in the ‘After’ scenario or there may be a paucity of sales, therefore comment as such
and note the comparability in the Sales Reconciliation Table.

However in a market of larger scale, where sales are regularly recorded, the Valuer must provide sales
evidence and analysis (both improved and vacant land sales) to support both the ‘Before’ and ‘After’
valuations for the subject property.

Please rank the sales in ascending order of sale price, lowest to highest.

1. 67 Williams Road
Sale date Nov 2012 This dwelling was built circa 1961 Photo
and exterior construction
Sale price $175,000 comprises timber weatherboard
cladding and corrugated iron
Floor area (m²) 110
roofing. The dwelling incorporates
Dwg $ .63,000 three bedrooms and there is a
single freestanding garage. Site
Tce/deck $ 2,000
development is of a basic
Garaging (Int) $ 0 standard and includes mixed
Buildings $ 5,000 perimeter fencing and a concrete
Site dvplmnt $ 5,000 driveway. .
Estimated LV $100,000

Land area (m²) 870 m²

Comparability Due to the site being smaller and the dwelling being of inferior
presentation to the subject property, we considered this property to
overall be inferior to subject

2. 22 Sharapova Crescent
Sale date Jan 2013 This dwelling was built in 1963 of Photo
brick veneer cladding and
Sale price $193,000 concrete tile roofing. The dwelling
incorporates three bedrooms and
Floor area (m²) 106
there is a single freestanding
Dwg $ 88,000 garage. Site development is
average and includes established
Tce/deck $ 1,000
gardens and a new concrete
Garaging (Int) $ 0 driveway.
Buildings $ 5,000
Site dvplmnt $ 4,000
Estimated LV $ 95,000

Land area (m²) 766 m²

Comparability Of similar size, location and presentation to the subject property,

therefore considered a good comparison to the subject property

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3.

Sale date Photo

Sale price

Floor area (m²)

Dwg
Tce/deck
Garaging (Int)
Buildings
Site dvplmnt
Estimated LV

Land area (m²)

Comparability

4.

Sale date Photo

Sale price

Floor area (m²)

Dwg
Tce/deck
Garaging (Int)
Buildings
Site dvplmnt
Estimated LV

Land area (m²)

Comparability

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8.1 .2 ‘Af t e r ’ Valu at io n ( Ig no ring t he Wo rk )

Delete this heading if valuation is for total purchase.

Please rank the sales in ascending order of sale price, lowest to highest.

1. 7 Ivanovic Road

Sale date Jan 2013 This dwelling was built in the Photo
40’s. Exterior construction is
brick and corrugated iron roof. A
Sale price $175,000 three bedroom dwelling with no
garaging.
Floor area (m²) 109

Dwg $ .65,000
Tce/deck $ 3,000
Garaging (Int) $ 0
Buildings $ 5,000
Site dvplmnt $ 2,000
Estimated LV $100,000

Land area (m²) 1.012 m²

Comparability The dwelling is similar to the subject property however the section is
smaller. Overall inferior to the subject on a ‘before’ basis but a good
comparison on an ‘after’ basis

2.

Sale date Photo

Sale price

Floor area (m²)

Dwg
Tce/deck
Garaging (Int)
Buildings
Site dvplmnt
Estimated LV

Land area (m²)

Comparability

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3.

Sale date Photo

Sale price

Floor area (m²)

Dwg
Tce/deck
Garaging (Int)
Buildings
Site dvplmnt
Estimated LV

Land area (m²)

Comparability

4.

Sale date Photo

Sale price

Floor area (m²)

Dwg
Tce/deck
Garaging (Int)
Buildings
Site dvplmnt
Estimated LV

Land area (m²)

Comparability

8.1 .3 Sale s Re co nciliat io n Tab le

Sale Address Sale date Sale Land Comparability
No. price area (m²) ‘Before’ ‘After’
‘Before’

1. 67 Williams Rd

2 22 Sharapova Cr Jan 2013 $193,000 766 m² Comparable

‘After’

1 7 Ivanovic Rd Jan 2013 $175,000 1012 m² Inferior Comparable

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8.2 Co mp arab le Sale s o f Va cant L and

8.2 .1 ‘Be f o re ’ Valuat io n ( Ig no ring t he Wo rk )
Delete this heading if valuation is for total purchase.

Please rank the sales in ascending order of sale price, lowest to highest.

1. 442 Williams Road

Sale date Jun 2012 An irregular vacant section on the same road as the subject.

Sale price $105,000

Land area (m²) 1300 m²

Zoning Low Density Res.

Comparability A good comparable

2. 291 Errani Road

Sale date Sept 2012 A vacant block in the same residential locality as the subject.
Level contour.
Sale price $111,000

Land area (m²) 1261 m²

Zoning Low Density Res.

Comparability A good comparable

3.

Sale date

Sale price

Land area (m²)

Zoning

Comparability

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8.2 .2 ‘Af t e r ’ Valu at io n ( Ig no ring t he Wo rk )

Delete this heading if valuation is for total purchase.

Please rank the sales in ascending order of sale price, lowest to highest.

4. 25 Williams Road

Sale date August 2012 A small section in close proximity to the subject.

Sale price $89,000

Land area (m²) 890 m²

Zoning Low Density Res.

Comparability Smaller therefore inferior to subject on an after basis

5.

Sale date

Sale price

Land area (m²)

Zoning

Comparability

8.2 .3 Sale s Re co nciliat io n Tab le

Sale Address Sale date Sale Land Comparability
No. price area (m²) ‘Before’ ‘After’
‘Before’

1 442 Williams Rd Jun 2012 $105,000 1300 m² Comparable

2 291 Errani Rd Sep 2012 $111,000 1261 m² Comparable

‘After’

4 25 Williams Rd Aug 2012 $89,000 890 m² Inferior

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8.3 Co mp arab le Sale s f o r Ret aine d L and ( includ ing imp act of wo rk )
Delete this heading if valuation is for total purchase.

The following sales should represent the situation of the subject property taking into account the proposed
work. Where possible, include vacant land sales that represent the situation on completion of the proposed
work.

1. 12 Kerber Road

Sale date Jan 2013 A 1980’s dwelling of lightweight Photo

construction and modest
specification. Built on a flat site
Sale price $160,000 that fronts a major suburban
road. There is off street car
Floor area (m²) 90 parking but no garaging.

Dwg $ 75,000
Tce/deck $ 0
Garaging (Int) $ 0
Buildings $ 0
Site dvplmnt $ 5,000
Estimated LV $ 80,000

Land area (m²) 850 m²

Comparability The newer dwelling than the subject property on a similar size section
to the subject on completion of the project and fronting a busy local
road. Overall comparable to subject property on completion of project.

2.

Sale date Photo

Sale price

Floor area (m²)

Dwg
Tce/deck
Garaging (Int)
Buildings
Site dvplmnt
Estimated LV

Land area (m²)

Comparability

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8.3 .1 Sale s Re co nciliat io n Tab le

Sale Address Sale Sale price Land area Comparability

No. date (m²)
1 12 Kerber Rd Jan 2013 $160,000 850 m² Comparable

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9.0 VALUATION APPROACH AND REASONING

9.1 Valu at io n App ro ach( s )

Discuss the reasons for adopting the valuation approach you have used and reasons for not using the
alternative (if any) approaches.

Greater reliance should be placed on actual inputs e.g. prices achieved for similar properties; actual cash
flows generated by the property. Assumed inputs may be relevant if the actual inputs are less reliable e.g.
out of date costs.

9.2 Imp ro ved Sale s Summary

Discuss the sales considered the most comparable to the subject property and why, plus the value range
that is indicated for the subject property in all scenarios.

9.3 Vaca nt L and Sale s Summary

Discuss the sales considered the most comparable to the subject property and why, plus the value range
that is indicated for the subject property in all scenarios.

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10.0 COMPENSATION
10 .1 St at ut e
Section 62(1)(b) states the amount of compensation payable is “that amount which the land if
sold in the open market by a willing seller to a willing buyer on the specified date might be
expected to realise, unless
 (i) the assessment of compensation relates to any matter which is not directly based on
the value of land and in respect of which a right to compensation is conferred under this
or any other Act; or
 (ii) only part of the land of an owner is taken or acquired under this Act and that part is of
a size, shape, or nature for which there is no general demand or market, in which case the
compensation for such land and the injurious affection caused by such taking or
acquisition may be assessed by determining the market value of the whole of the owner's
land and deducting from it the market value of the balance of the owner's land after the
taking or acquisition.”
Section 62(1)(c) states “where the value of the land taken for any public work has, on or before
the specified date, been increased or reduced by the work or the prospect of the work, the
amount of that increase or reduction shall not be taken into account”.

Therefore the value of the land taken (either the full site or a partial acquisition) must be
assessed as if the work was not proposed or not in existence.

Note to Valuer - Delete paragraphs 10.2 -10.4 if the valuation is for total purchase.

10 .2 ‘Bef o re ’ and ‘Af t e r ’ Valuat io n App ro ach

The value of the land acquired is the difference between the ‘Before’ valuation and the ‘After’
valuation. This assesses the compensation for the loss of land and improvements on the land
taken, ignoring the proposed work.

The ‘Before’ valuation is “that amount which the land if sold in the open market by a willing seller
to a willing buyer on the specified date might be expected to realise”. Comparable sales of
vacant and improved properties have been used to assess this amount.

The ‘After’ valuation is the amount which the retained land (after the acquiring of the required
land) if sold in the open market by a willing seller to a willing buyer on the specific date might be
expected to realise and, again, disregarding the prospect of the proposed work. Therefore the
‘After’ valuation is of a smaller property in the exact same location and situation as the ‘Before’
property.

10 .3 Eff e ct o n Re t aine d Pro p e rt y – Injurio us Aff e ct io n / Be t t e rme nt

10 .3 .1 Injurio us Aff e ct io n
Injurious Affection is assessed by valuing the retained land (smaller parcel etc.) on completion of
the works and comparing it to the value of the retained land, ignoring the proposed works.
This has required reference to sales of properties in a location that reflects the location of the
subject property on completion of the works, e.g. busy, multi-lane road with high traffic volume.
Such sales provide an indication as to the permanent affect the works have on the retained
property and include noise, possible poorer access etc.
It must be noted that Injurious Affection can also apply to ‘other land’ of the claimant even if land
for a Public Work was not directly taken e.g. a rear title owned by the claimant suffers Injurious
Affection by the taking of land from a front title that includes right of way access to the rear title.

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Example - Given that the ‘Highest and Best’ use of the subject property is currently a residential property in
a quiet residential area, the construction of the Southern Expressway along the southern boundary is
considered to have a detrimental effect on the property’s value.
Our analysis of sales evidence of residential properties with an expressway and / or a road that carries a
high volume of traffic along their boundary indicate a value for the subject property on completion of the
proposed work (being the retained land area and improvements) of $165,000.

10 .3 .2 Be t t e rme nt
Section 62(1)(e) states
The Tribunal shall take into account by way of deduction from that part of the total amount of
compensation that would otherwise be awarded on any claim in respect of a public work that
comprises the market value of the land taken and any injurious affection to land arising out of
the taking, any increase in the value of any land of the claimant that is injuriously affected, or in
the value of any other land in which the claimant has an interest, caused before the specified
date or likely to be caused after that date by the prospect of the work:
And
62(1)(f) The Tribunal shall take into account, by way of deduction from the total amount of
compensation that would otherwise be awarded, any increase in the value of the parcel of land in
respect of which compensation is claimed that has occurred as a result of the exercise by the
New Zealand Transport Agency of any power under Section 91 of the Government Roading
Powers Act 1989.
The amount of Betterment is the increase in value between the ‘After’ value of the subject
property, ignoring the project and the value of the retained property having regard to the
presence of the project.
It must be noted that Betterment also includes any increase in the value caused by the project of
any other land in which the claimant has an interest.
Example - Given the ‘Highest and Best’ use of the property is a residential property requiring market
exposure for its home industry business, the construction of the Southern Expressway along the southern
boundary will have a positive effect on the whole property’s value.
Our analysis of sales comparable evidence of properties that can be used for properties which have
exposure to a high traffic volume roadway suggests that the effect of the proposed works on the retained
property will increase the value due to increased market exposure and improved customer access. This
increase in value is generally known as ‘Betterment’ and from comparable sales indicates a value of the
retained property of between $175,000 and $185,000.

10 .4 No Eff e ct o n Pro pe rt y
Example - The effect of the proposed Works on the subject property is considered to be Nil. The subject
property is already on a busy road with similar levels of visibility, accessibility and road noise. The exiting
road is being widened slightly and it is considered that the reduction in size and the effect of the completed
Works will have cause no further loss in value to the subject property.

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11.0 Valuation Process

The recommended process for assessing compensation for a partial acquisition complies with the
following steps:
1. Market value of owners total interest ignoring the proposed work (the ‘Before’ valuation)
2. Market value of the owners interest after the taking of the land (retained land) but
ignoring the proposed work (the ‘After’ valuation)
3. Compare the ‘Before’ and ‘After’ valuations to assess the market value of the land being
acquired.
4. Assess the impact of the project on the retained land i.e. injurious affection (damage) or
betterment (enhancement) by comparing the market value of the retained land including
the impact of the project to the market value of the retained land ignoring the work (para.
2 above).
The above described process is recommended to provide a clear basis for understanding the
impact of the project on the retained land.

For an acquisition of a whole property, the market value is the fair market value of the land as
described in the Act - S62(1)(b).

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12.0 Valuation (Total Acquisition)

12 .1 Curre nt M arket Val ue ( To t a l P u r c h a s e I g n o r i n g t h e Wo r k )
Example - Residential dwelling on 1000 m² site

Land Value
[land area] 1000 m² $
Value of Improvements
Dwelling – xxx m² @ $xx/ m² $
Carport/ Garage – xxx m² $
Site Development $
Chattels $
Total Value of Improvements $ say $
Market Value (GST incl. if any) $

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13.0 Valuation Conclusion (Partial Acquisition)

Delete this section if valuation is for a total purchase.

If Improvements form part of the area to be acquired, note the reduced value of improvements, which may
be zero, in the ‘After’ valuation.

13 .1 ‘Bef o re ’ Valu at io n
(Refer paragraph 12.1 – Current Market Value for Total Purchase Ignoring the Work)
Market Value $

13 .2 ‘Af t e r ’ Val uat io n ( R e t a i n e d L a n d I g n o r i n g t h e Wo r k )

Example - After - Residential dwelling on 800 m² site

Land Value
[land area] 800 m² $
Value of Improvements
Dwelling – xxx m² @ $xx/ m² $
Carport/ Garage – xxx m² $
Site Development $
Chattels $
Total Value of Improvements $ say $
‘After’ Market Value $

13 .3 Va luat io n o f L and t o be Acq uire d

Market Value of Land to be Acquired (Difference 13.1 &13.2) $

13 .4 Valu at io n of Re t aine d L and (Includ ing Imp act of t he Wo rk )

Example - After - Residential dwelling on 800 m² site

Land Value
[land area] 800 m² $
Value of Improvements
Dwelling – xxx m² @ $xx/ m² $
Carport/ Garage – xxx m² $
Site Development $
Chattels $
Total Value of Improvements $ say $
Market Value of Retained Land
(including impact of work) $

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14.0 Assessment of Injurious Affection (Impact of the Work on the

Retained Land)
Delete this section if valuation is for a total purchase.

With reference to analysis of sales of properties that are comparable to the subject property on
completion of the work, we have assessed the Injurious Affection of the work on the retained
land, (and other land of the claimants that is affected by the acquiring of the described land), as
follows;
Market Value of Retained Land (ignoring the $
work)
(copied from para. 13.2)

Less

Market Value of Retained Land (incl. impact of $

work)
(copied from para. 13.4)

Assessed Injurious Affection $

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Delete this page if there is no Betterment.

15.0 ASSESSMENT OF BETTERMENT

With reference to our analysis of sales of properties that are comparable to the subject property
on completion of the work, we have assessed the Betterment of the work on the retained land
(and other land of the claimants that is affected by the acquiring of the described land), as
follows;

Assessed Betterment of Retained Land $

Plus
Assessed Betterment of Claimants Other Land $

Total Betterment $

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16.0 Compensation Assessment

Delete this section if valuation is for a total purchase.
The total compensation is the value of the land (and any improvements on it) to be acquired plus
the injurious affection to the remaining property attributed to the proposed works less the
betterment to the property on completion of the proposed works.

We assess the compensation for the acquisition of the required land to be $,000 (Dollars).

This is further broken down as follows:

Market Value of Land & Improvements to be Acquired $

Injurious Affection (to retained land) $
(Total) Compensation $
Note to Valuer - Delete following if there is no betterment.
Less
Betterment $
Total Compensation $

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17.0 Concluding Remarks

This report is to be read in conjunction with the attached appendix documentation, including:

 the scope of works

 the terms of engagement
 the client engagement contract

Please do not hesitate to contact me should you require any further assistance or clarification.

Valuer
Company
Contact Details

Appended
 CT/CFR
 Land Requirement Plan
 Longitudinal Plans
 Planning Conditions
 Photo Montage/Profile Plans/Concept Drawings
 Mitigation Reports
 Impact Reports (e.g. Traffic, noise, pollution)
 Designation Planning Condition

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APPENDIX I - HYPOTHETICAL SUBDIVISION Example

This example is only suitable for a small to medium sized hypothetical subdivision that has an assessed sell
down period of 12 months or less. For a hypothetical subdivision where the assessed sell down period is
greater than 12 months we recommend the use of the discounted cash flow method of valuation. An
explanation and analysed evidence of sell down periods should be included in the valuation report. The
valuer may add to or alter this format. To support this method of valuation, we recommend reference to
sales of block land. (Please note that the amounts and allowances used are example only). Please state
clearly your treatment of GST and ensure that the treatment of GST is consistent in all valuation scenarios.

Hypothetical Subdivision
Worksheet
Val Ref: xxxx/xxxx CV $ 500,000
Address: 116 Victoria Ave LV $ 475,000
Land Area (ha) 20 Rates $ 1,473
Min. Size lot (ha) 5 Interest Rate 6.0%
No. Sites (max) 4 Profit & Risk 25.0%
Realisation period (yrs) 1

VALUATION CALCULATIONS
No of Lots - 4 sites
Lot 1 $
380,000
Lot 2 $
320,000
Lot 3 $
320,000
Lot 4 $
500,000

GROSS REALISATION $ $
1,520,000 1,520,000
less GST 15.0% $
198,261
less Agents Commission 5.0% of Gr. Real. $
76,000
less advertising $ 500 per site $
2,000
less Legal Fees $ 2,000 per site $ $
8,000 86,000

NET REALISATION $
1,235,739
less Profit & Risk 25.0% of Outlay. $
247,148

OUTLAY $
988,591
less Development Costs
Development (roading, services $ 25,000 per site $
etc) 100,000
Resource consent $ 10,000 $
10,000
Survey and title $ 5,000 per site $
20,000
Reserve Contribution $ 7,500 3 sites $
22,500

$
152,500
Interest on Outlay
(1/2 sell down period) 6.0% $ $
29,658 182,158

BLOCK VALUE (Excl. GST) $

806,434

Block Value Analysis Per site $

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201,608
Per ha $
40,322
Development Costs Analysis Per site $
38,125
(excl. of Interest) Per ha $
7,625

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