Town Planning Review

Valuation in the dark: constructing perceptions of normality in failing markets

Town Planning Review (2019), 90, (4), 383–406.

Abstract

This paper explores the challenging task of assigning value to land in ‘thin’ or ‘fragile’ property markets characterised by economic restructuring and capital flight. Such markets are frequently epitomised by low demand and substantial uncertainty. The paper draws on detailed interview evidence with professional valuers to reveal the difficulties they experience in seeking to apply traditional valuation methods in one such failing market. Reliance on their own experience and professional judgement reinforces the role of valuers as market makers with the desire to uphold perceptions of normality by placing a value on land that theoretically might appear to have none.

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References

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CROSBY, N. and HENNEBERRY, J. (2017), ‘Valuation and evolution of new uses and buildings’, in Henneberry (ed.), 185–98. Google Scholar

CROSBY, N., LIZIERI, C., McALLISTER, P. and MARTIN, S. (2009), Issues in Property Investment Valuation: A Discussion Paper for the Investment Property Forum (IPF Research Programme Short Papers Series, Paper 3), London, Investment Property Forum. Google Scholar

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SCOTTISH GOVERNMENT (2019), Scottish Vacant and Derelict Land Survey 2018, Edinburgh, Scottish Government. Google Scholar

SCOTTISH LAND COMMISSION (2018), Compulsory Sale Orders, Inverness, Scottish Land Commission. Google Scholar

SMITH, S. J., MUNRO, M. and CHRISTIE, H. (2006), ‘Performing (housing) markets’, Urban Studies, 43, 81–98. Google Scholar

SYMS, P. (2010), Land, Development and Design, 2nd edn, Oxford, Wiley-Blackwell. Google Scholar

URBAN TASK FORCE (1999), Towards an Urban Renaissance, London, E. and F. N. Spon. Google Scholar

WEBER, R. (2016), ‘Performing property cycles’, Journal of Cultural Economy, 9, 587–603. Google Scholar

ADAIR, A., HUTCHISON, N., BURGESS, J. and ROULAC, S. (2005), ‘The appraisal of urban regeneration land’, Journal of Property Investment and Finance, 23, 213–33. Google Scholar

ADAMS, D. (2017), ‘Tackling hardcore vacancy through compulsory sale orders’, in J. Henneberry (ed.), Transience and Permanence in Urban Development, Chichester, Wiley-Blackwell, 215–29. Google Scholar

ADAMS, D., BAUM, A. and MACGREGOR, B. (1985), ‘The influence of valuation practices upon the price of vacant inner city land’, Land Development Studies, 2, 157–73. Google Scholar

ADAMS, D. and TIESDELL, S. (2010), ‘Rethinking state–market relations in land and property development’, Planning Theory and Practice, 11, 187–207. Google Scholar

BAUM, A., CROSBY, N., GALLIMORE, P. McALLISTER, P. and GRAY, A. (2000), ‘The influence of valuers and valuations on the workings of the commercial property investment market’ (paper given at the RICS Cutting Edge Conference), London. Google Scholar

CPRE (2014), Removing Obstacles to Brownfield Development, London, Campaign to Protect Rural England. Google Scholar

CROSBY, N. (2000), ‘Valuation accuracy, variation and bias in the context of standards and expectations’, Journal of Property Investment and Finance, 18, 130–61. Google Scholar

CROSBY, N. and HENNEBERRY, J. (2017), ‘Valuation and evolution of new uses and buildings’, in Henneberry (ed.), 185–98. Google Scholar

CROSBY, N., LIZIERI, C., McALLISTER, P. and MARTIN, S. (2009), Issues in Property Investment Valuation: A Discussion Paper for the Investment Property Forum (IPF Research Programme Short Papers Series, Paper 3), London, Investment Property Forum. Google Scholar

CUSHMAN AND WAKEFIELD (2018), UK Marketbeat 2018 Q1, London, Cushman and Wakefield. Google Scholar

ENGLISH PARTNERSHIPS (2006), The Brownfield Guide: A Practitioner’s Guide to Land Reuse in England, London, English Partnerships. Google Scholar

FISHER, J. D., GATZLAFF, D., GELTNER, D. and HAURIN, D. (2003), ‘Controlling for the impact of variable liquidity in commercial real estate price indices’, Real Estate Economics, 31, 269–303. Google Scholar

GLOSTER, M. and SMITH, N. (1989), Inner Cities: A Shortage of Sites, London, RICS. Google Scholar

GRENADIER, S. (1995), ‘The persistence of real estate cycles’, Journal of Real Estate Finance and Economics, 10, 95–119. Google Scholar

HEALEY, P. (1991), ‘Urban regeneration and the development industry’, Regional Studies, 25, 97–110. Google Scholar

HENNEBERRY, J. and ROBERTS, C. (2008), ‘Calculated inequality? Portfolio benchmarking and regional office property investment in the UK’, Urban Studies, 45, 1217–41. Google Scholar

HOWES, C. (1989), ‘Special report land assembly: private sector gets a boost’, Chartered Surveyor Weekly, 19 January, 61–63. Google Scholar

JEPPERSON R. L. (1991), ‘Institutions, institutional effects and institutionalism’, in W. W. Powell and P. J. DiMaggio (eds), The New Institutionalism in Organization Analysis, Chicago, The University of Chicago Press, 143–63. Google Scholar

LAND REFORM REVIEW GROUP (2014), The Land of Scotland and the Common Good, Edinburgh, Scottish Government. Google Scholar

MILLER, P. (1994), ‘Accounting as a social and institutional practice: an introduction’, in A. G. Hopkins and P. Miller (eds), Accounting as Social and Institutional Practice, Cambridge, Cambridge University Press, 1–39. Google Scholar

MILLER, P. (2001), ‘Governing by numbers: why calculative practices matter’, Social Research, 68, 377–96. Google Scholar

OXLEY, M. (2004), Economics, Planning and Housing, Basingstoke, Palgrave. Google Scholar

RICS (2008), Valuation of Development Land (Valuation Information Paper 12), London, Royal Institution of Chartered Surveyors. Google Scholar

RICS (2012), Comparable Evidence in Property Valuation, London, Royal Institution of Chartered Surveyors. Google Scholar

SAYCE, S., SMITH, J., COOPER, R. and VENMORE-ROWLAND, P. (2006), Real Estate Appraisal: From Value to Worth, Oxford, Blackwell Publishing. Google Scholar

SCOTTISH GOVERNMENT (2019), Scottish Vacant and Derelict Land Survey 2018, Edinburgh, Scottish Government. Google Scholar

SCOTTISH LAND COMMISSION (2018), Compulsory Sale Orders, Inverness, Scottish Land Commission. Google Scholar

SMITH, S. J., MUNRO, M. and CHRISTIE, H. (2006), ‘Performing (housing) markets’, Urban Studies, 43, 81–98. Google Scholar

SYMS, P. (2010), Land, Development and Design, 2nd edn, Oxford, Wiley-Blackwell. Google Scholar

URBAN TASK FORCE (1999), Towards an Urban Renaissance, London, E. and F. N. Spon. Google Scholar

WEBER, R. (2016), ‘Performing property cycles’, Journal of Cultural Economy, 9, 587–603. Google Scholar

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