Problem analysis and values definition
The main aim of the report is to evaluate the value of the subject property 134-136 Melville Road, Brunswick West. The report is made by the buyer who has a personality of a developer. The alternatives are also discussed in the report to make proper use of a subject property. The client wants to buy the subject property to develop residential apartments in the future. They want to invest for future profit. A non-government organization of UN the International Valuation Standards Committee (IVSC) works as a third party to value the property and promote the agreement and provides an understanding of the standard. The estimated amount of valuation between the willing buyer and willing seller that an asset should exchange after property marketing at arm’s length transaction where both parties had acted as prudently, without compulsion and knowledge ability (French, et al., 2021). The subject property can be valued by proper developments. The address is perfect due to less distance from train stations, bus stations, and tram stops.
Property analysis and specification of alternative use
In property analysis, subject site development advantages, disadvantages are evaluated. In this analysis, we will evaluate the advantages and disadvantages of 134-136 Melville Road, Brunswick West property of Australia. In this analysis, we examined property characteristics like its environmental, legal, and locational characteristics, etc.
In physical characteristics, we inspect the site on the spot by visual analysis. The site is empty land situated at 134-136 Melville Road. This place is situated in the heart of Brunswick West. The property can be used for commercial and also residential purposes. This private property is a rectangular shape and the frontage related to the road is about 22.8m. The total area of the property is about 823 sq.m and there is space for the 15 apartments with four-floor retail space. On one side there is Melville Road and on the other side, there is the street. The site is empty so anything can be made for residential and commercial purposes. On both sides left and right there are buildings and at the front, there is an electricity and gas supply line. This is the middle site and there is a large site for neighboring from both sides (Kara, et al., 2020).
There is no restriction on the title of the property. There is not any planning restriction that can affect the value. Lease for the property is not available for that can cause the perfect cash flow. The site is under the commercial 1 zone. That’s why there is not required permission for shop /retail rent. There is a large space for three ground-floor retails over the four levels. The site is flat and empty therefore there is the chance to make it with own wishes. The site is near the train stops and bus stops that why the proper flow of traffic is made by the government. It will be easier to go to other places via train or bus.
In the site location, there lived families and also young individuals. The outskirts behavior is well and has developed thinking. The Melville Road is best to go local and commercial works either by car or bus. The schools and health services are also near the site. There is 1.5 km to Anstey railway station and 1.6 km to Citylink entrance. Melbourne Airport is also connecting to the Citylink entrance (Morano, et al., 2021).
On the backside of the site, there is a street full of greenery. There was not any environmental danger on the site. The site is close to the tram, train, and bus stations that can impact but otherwise, there is not any physical or social impact on the site. The rate of pollution is very less due to residential areas. There is not conducted survey or report for this site to determine other characteristics (Tajani, et al., 2018).
134-136 Melville Road, Brunswick west is a space where other buildings are already built for residential and commercial purposes. The noise of the terrific from the Melville Road is high due to high traffic. The property has huge significance due to less distance from the tramp, train, and bus station. The Anstey train station is 1.4 km away, the 37-Albion St/Melville Rd is 126 m away and Melville Rd/Murray St (Brunswick West) is at 73 meters distance. The space is available for 15 apartments with each will have a balcony. Due to the already presence of the commercial and residential buildings this place will high demand. In the surrounding, there are mostly houses. The space is available for four levels. There is also a proven sales record in neighbor buildings due to the perfect location. The property is highly unique due to very well environmental, legal and physical characteristics. There is a low risk regarding investment on the Melville Road site property. The Melville valuation in 2018 was $302556 that is higher than Western Australia
Alternatives uses and selection of the probable use
This site can be more developed and beneficial as property for the buyer in the future and the market value of the area might increase. There are already two alternatives to use the 134-136 Melville property such as commercial and residential. These two options are helpful for minimal capital investment. The developments of the property into mix forms like commercial such as shops and residential stories for families and a young good amount of the rent can be collected. There is a market of low-risk investment so investing to create a shopping mall is also a good opportunity for the buyer. If the buyer has invested in this property, then the valuation of the property will increase in the future (Tian, et al., 2018).
This is the segment of analyzing and suggesting the possible utilization of the site by the buyer and explains what options are available for the redevelopment and which one is more likely to be adopted. In the present property, there are three possible usages like commercial, residential, or mix-up of the both. By renting the residential, commercial, or mix up of both huge profits can be obtained. Because the property is connected to tramp, train, and bus stations that’s why creating a shopping mall or departmental store will be greatly beneficial. According to the detailed analysis made regarding the locality and environmental values of the selected site, many options are existing for the development of the present site. The area can be remodeled as a finer boutique, a café, restaurant, or an eatery, as a well-maintained salon or a service center.
This part of the plan gives a detailed account of the buyers’ inclination towards the site for property ownership, the pricing framework, and estimation of the site for sale, and the detailed analysis of the market. The market competitive conditions related to the site and recommendations regarding the market value and pricing structure have also been explained in the section. The cost per purchase is estimated at $1,234,567 that is higher than other properties of Western Australia. The buyers are those who have large businesses and this is also private property. This property will be obtained historic cost due to its flexibility for zoning, boutique, and commercial use.
Given the area analysis of the site, there is a possibility for the site to be more developed and beneficial as property for the buyer in the future and the market value of the area might increase. Hence there would be an increased tendency of the buyer towards getting the site for redeveloping. The most likely buyer of the property is the one looking for better opportunities for investment and generating income through business development. Another buyer option is the one who partially purchases the property and pays rent or lease after establishing a business at the site (Gabrielli & French, 2020).
Structure of Pricing
In this part of the section, we give the framework of the pricing of the subject which involves estimating the range of the property based on the detailed examining and analysis of the locality of the site, the economic factors-based market survey, and range evaluation considering the competitive market sales analysis. The traditional concept of predicting the price of the property is used for the purpose and the concept includes a comparative analysis of the area, sales, and income of the adjacent property sites.
The estimation and setting of the price value of the subject site have been made keeping into consideration all the possible measures of accuracy (Abidoye, 2017).
Based upon the previous knowledge prediction for the future can be conducted for the Millville property of Western Australia. Due to its locational, psychology, and environmental characteristic the property is suitable for development. The buyer of the property may be the investors that want to use property in the future for the residential or commercial. The property can also be used as a mixture of both. The main aim of the prediction of the price is to estimate the profit and problems. By methodology to predict the price it is suggested that the property has the well economic characteristics. By the cost-income, sales comparison, and value analysis the different probable use of the property examined. The site itself and also its neighbors are inspected completely to predict the price. The information’s collected from each rental and by comparison and verifying valuation report is made. Different results are adjusted and by comparing the cost of per sqm building good estimate range is evaluated (Kokasih & Paramita, 2020).
Method: Regression Models
For identifying the problems of the site location regression model was used. By use of this model on the present site, we evaluate the factors trading area and the elements of the site. There was a huge opportunity for trading. Fewer factors were available that can affect the site value. The model helps to evaluate the various types of revenue factors. The store attributes (S), price (P), market attributes (M), competition (C), and the function of the location (L) are evaluated. The formula like Y= f (L, S, M, P, C) is used for this method (Botchkarev, 2018).
Problem analysis and values definition