Sovereign Valuations

Expert witness valuations require thorough research and detailed reporting to ensure the valuer’s rationale is properly explained and to ensure all the opinions and assumptions of the valuer are clearly laid out. Obtaining accurate expert evidence can reduce the risk of ongoing disputes and associated costs.

The cost of inaccurate expert evidence can be significant and by way of example, we were engaged as a Shadow Expert to assess the value of a commercial leasehold asset with our evidence contributing to the Single Expert reducing their valuation by greater than 50%. If the parties had settled on the appointed Single Expert’s initial advice it would have had a significant financial impact on the parties.

With ‘in the box’ experience our valuers have provided expert evidence to several courts and tribunals including VCAT, County Court, Land & Environment Court and the Supreme Court in both VIC & NSW. To find out more about our valuations for litigation purposes click the link below.

Litigation Property Valuations — Sovereign Valuations Litigation Property Valuations Sovereign Valuations is experienced in undertaking property valuations for litigation purposes, being regularly engaged to provide expert evidence to courts for an array of commercial litigation matters. Valuation reports have been completed for most courts and tribuna...

Sovereign Valuations is experienced in undertaking property valuations for compulsory acquisition purposes, representing dispossessed parties, acquiring authorities and the Valuer General. The compulsory acquisition of land occurs when an authority requires an interest in land for a public purpose, which can include road widening, transmission lines, gas pipelines, drainage and many other forms of infrastructure.
Engaging a property valuation firm that is experienced in compulsory acquisition matters is a critical step to ensuring an adequate sum of compensation is achieved. Further to assessing the relevant heads of compensation, the property valuer must be able to articulate and defend their position within intensive conference and court settings.
We have provided compulsory acquisition advice for complex partial acquisitions of englobo industrial and residential development sites, institutional grade CBD properties, along with conventional commercial and residential holdings. Our recent engagements have included compensation assessments in excess of $100 million and have been across the following projects:
- Suburban Rail Loop
- HumeLink
- North East Link
- Level Crossing Removal Project
- New Shellharbour Hospital Project and Integrated Services Project
- Warrawong District Community Centre and Library
- Sydney Metro West
- Wagga Wagga Special Activation Precinct
- Partial acquisition of Goulburn Court House
- Various authority and private easements

Contact us today to find out how we can assist.

Compulsory Acquisition Property Valuations — Sovereign Valuations Compulsory Acquisition Property Valuations Sovereign Valuations is experienced in undertaking property valuations for compulsory acquisition purposes, representing dispossessed parties, acquiring authorities and the Valuer General. The compulsory acquisition of land occurs when an authority requires...

When it comes to valuing commercial property in Australia, there’s no one-size-fits-all approach.

Each valuation method has its own advantages and disadvantages, so the right method to use depends on the specific property and its unique characteristics.

For instance, direct comparison involves looking at recent sales of similar properties in the area to determine a property's value often based on $/sqm or $/Ha. But while it’s relatively straightforward, there are not always truly comparable recent sales in an area.

Capitalisation of income is particularly useful for commercial properties that are saleable primarily to investors, as it provides an estimate of the property's value based on its income-generating potential, considering the quality of the tenant, length of the lease, whether the lease is at market levels and any potential development or value-add potential upon lease expiry.

Discounted cash flow method allows the valuer to undertake a more forensic assessment of the expected income over future years and expected movements in yields and is often the primary valuation method for assessing the value of larger institutional grade assets with multiple income streams.



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Want to know the market value of your commercial property? Sovereign Valuations can help. Get in touch by calling 1300 710 000 or emailing [email protected]

Did you know that zoning can significantly impact residential property values in Australia?

Zoning laws govern how land can be used in specific areas, such as residential, commercial, or industrial. These regulations can affect a property's desirability, accessibility, and potential uses, which in turn can affect its value.

For example, a property in a residential zone with strict building height restrictions may have limited development potential and therefore be less valuable than a similar location with more lenient zoning laws.

Similarly, a property located in a mixed-use zone, where commercial and residential uses are allowed, may have a higher value due to its potential for a higher density development outcome.

Understanding how zoning affects residential property values is crucial for homeowners, investors, and developers alike. That’s why it's a good idea to work with an experienced property valuation firm who has a deep understanding of the local market.



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Want to know the market value of your commercial or residential property? Sovereign Valuations can help. Get in touch by calling 1300 710 000 or emailing [email protected]

Sovereign Valuations would like to wish everyone a Merry Christmas and Happy New Year.

We would also like to thank our customers for supporting us in our second year of business and we also thank our small but talented team for the accomplishments achieved this year.

We are remaining open over the festive season with the exception of public holidays.

Construction costs are increasing throughout Australia, due to the global supply chain crisis, labour and material shortages, and the increasing price of timber, metals and fuel.

As a result, CoreLogic’s Cordell Construction Cost Index jumped 10% in the year to June, being the highest annual growth rate on record (apart from the introduction of the GST) and nearly double the rate of inflation.

The significant increase in construction costs will mean that many properties are now underinsured, and it is recommended that anyone holding property reviews their replacement insurance valuations to ensure they are adequately covered should a disaster strike.



Want to insure your property for its true replacement cost? Sovereign Valuations can give you an up-to-date insurance replacement valuation. Get in touch by calling 1300 710 000 or emailing [email protected]

Sovereign Valuations combines years of experience to provide accurate property valuation advice across commercial and prestige residential properties.

Sovereign Valuations Sovereign Valuations provides a boutique property valuation service, specialising in complex commercial and residential valuations for litigation purposes. Property valuations are undertaken across Melbourne, Sydney and regional areas.

A beautiful industrial residential conversion. High ceilings, exposed bricks, steel windows and exposed timber rafters 😍

Sovereign Valuations would like to thank our clients and referrers for supporting us in our first year of business.

We hope you get a chance to refresh and we look forward to working with you in the New Year!

Considerations when valuing advertising signage include:

- Volume of passing traffic and any potential changes to traffic flows.

- Type of signage - a static advertising sign is inferior to a modern electronic advertising sign. A sign with a single side may capture less audience than a sign with two or three sides. The size of the signage is also to be considered.

- Demographic of the area - an advertiser will typically pay more to have an advertisement shown to higher income earners.

- Planning permit conditions - a planning permit may impose restrictions on the size and type of sign permitted. A planning permit may also impose an expiration date, and although it is common for permits to be renewed there is still a risk that a permit will not be renewed upon expiration of the current certain term.

- Terms of the lease - as per any commercial lease it is important to assess lease terms such as rental reviews, duration of term, options, ownership of signage, who is liable for outgoings, and any potential incentives. It is also important to consider whether the lease term falls within any potential expiration date of the planning permit.

- If undertaking a freehold valuation of a building with advertising signage, the permitted duration of the advertising signage use as per the planning permit is a key consideration when deciding whether to capitalise the income in perpetuity or add the net present value of future cash flows. We have experienced situations where enquiries with Council revealed they would not be renewing the planning permit beyond the current term of the permit.

At Sovereign Valuations we are experienced in valuing advertising signage and we hold key data on several $300,000+ per annum billboard leases.

www.sovereignvaluations.com.au/blog/advertising-signage-valuations

Sovereign Valuations is experienced in undertaking property valuations for insurance replacement purposes. An accurate insurance replacement valuation is imperative to ensuring your investment is adequately insured should a disaster strike. It is important to note that construction costs within many markets have increased significantly throughout the Covid-19 pandemic due to many reasons including:

- Impacted global supply chains leading to increased cost of building materials
- Labour shortages
- Increase in the number of infrastructure projects

An insurance replacement valuation estimates the replacement cost of the property. The replacement cost is the estimated total cost, at the date of valuation, to reconstruct the property to a condition equal to, but not better or more extensive than its condition when new. The property is assumed to be reconstructed to a modern equivalent ‘as new’ including any allowances for removal of any remains and debris, professional fees, upgrading with modern equivalent materials, equipment and services to meet current building regulations in accordance with the building code of Australia and to the local council regulations. It is an estimate of probable cost to replace the built structures and external improvements made to land, wholly contained within the boundaries.

The replacement cost estimate considers the following costs:

- Demolition and removal of debris
- Building cost
- Landscaping and site works
- Professional fees
- GST
- Escalation of building costs during demolition, design and tender process
- Escalation over insurance period for 12 months
- Contingency

Sovereign Valuations uses the most up to date price indicators published by Rawlinson’s Australian Construction Handbook. Further to this, Sovereign Valuations has extensive experience vetting building contracts for various residential and commercial development projects, providing further valuable insight into market construction costs.

https://www.sovereignvaluations.com.au/insurance-replacement-valuations

We have valued clifftop properties along 'Millionaire's walk' between Sorrento and Portsea for a variety of purposes. Private jetties are not on property title but are subject to a 'seabed' lease from the Crown. The seabed rents are reviewed regularly and one of the factors to be considered is whether the jetties are also accessible to the public as this increases insurance outgoings.

Sovereign Valuations is experienced in undertaking property valuations for litigation purposes, being regularly engaged to provide expert evidence to courts for an array of commercial litigation matters. Valuation reports have been completed for most courts and tribunals including the Family Court, Federal Circuit Court, County Court and the Supreme Court.

We are cognisant of the high stakes involved in commercial litigation and are aware that an expert evidence property valuation is often the basis of a settlement figure. We do not take our role lightly, with all litigation valuation reports going through the rigour of forensic data analysis and thorough, detailed reporting, reducing the risk of ongoing disputes and associated legal costs. As part of our engagement, our experts are available for conferences, mediation and court attendance, being familiar with the court hearing process.

Property valuations provided for court are conducted in accordance with the Expert Witness Code of Conduct, noting that the Valuer’s duty is to provide independent expert evidence to the court and not to act as an advocate to either party. We take pride in upholding the professional standards and codes of ethics established by the Australian Property Institute (API) and the Royal Institute of Chartered Surveyors (RICS).



www.sovereignvaluations.com.au/litigation-property-valuations

Sovereign Valuations is experienced in undertaking property valuations for compulsory acquisition purposes, representing both dispossessed parties and acquiring authorities. The compulsory acquisition of land occurs when an authority requires an interest in land for a public purpose, which can include road widening, transmission lines, gas pipelines, drainage and many other forms of infrastructure.

Compulsory acquisition valuations are a specialised valuation field with our firm cognisant of the relevant legislative requirements set out in the Planning and Environment Act 1987 (VIC), Land Acquisition & Compensation Act 1986 (VIC) and the Land Acquisition (Just Terms Compensation) Act 1991 (NSW). Further to statute law requirements we are regularly updated with regards to case law outcomes, providing notable precedence for complex valuation matters.

Both the landlord and tenant can have a claim for compensation in a compulsory acquisition matter, noting the landlord has a freehold interest in the property and the tenant has a leasehold interest. Sovereign Valuations has experience in assessing both freehold and leasehold interests.

Sovereign Valuations provides a boutique residential property valuation service, specialising in the prestige residential market. Residential property valuations have been undertaken to values in excess of $20 million, representing premier holdings across Melbourne and Sydney. We have experience across most premier markets including but not limited to:

- Domain precinct South Yarra properties;
- Toorak including premier St Georges Rd properties;
- Middle Park and Albert Park properties;
- ‘Golden Mile’ Brighton including premier beachfront properties;
- ‘Sackville Ward’ and ‘Studley Park Estate’ Kew properties;
- ‘Scotch Hill’ Hawthorn properties;
- Clifftop Sorrento and Portsea properties (including private jetty rental assessments);
- Lifestyle properties through Flinders and Red Hill;
- Lower North Shore Sydney properties including Mossman and waterfront Cremorne properties;
- Sydney’s eastern suburbs including properties within Vaucluse, Rose Bay, Bondi and Coogee.

The prestige residential market requires valuers to have a keen eye for detail and an understanding of the differing estates and streets within suburbs. In addition to prestige residential property valuations, Sovereign Valuations is also engaged for more typical suburban residential property valuations across Melbourne and Sydney.

Residential property valuations factor in all aspects of a property, including but no limited to:

- Location
- Orientation
- Architectural style
- Quality of fixtures
- Land size
- Building size
- Views
- Ancillary improvements
- Privacy / overlooking issues
- Restrictive encumbrances on title
- Zoning

Sovereign Valuations takes pride in providing highly accurate, forensically researched and analysed valuation reports, ensuring stakeholders are provided with the most accurate advice possible.

Residential Property Valuations — Sovereign Valuations Residential Property Valuations Sovereign Valuations provides a boutique residential property valuation service, specialising in the prestige residential market. Residential property valuations have been undertaken to values in excess of $20 million, representing premier holdings across Melbourne an...

Traditional valuation methods undertaken for commercial property holdings include:

- Direct Comparison
- Capitalisation of Income
- Discounted Cash Flow (DCF)

Complimenting the above methods of valuation, Sovereign Valuations has expertise in quantitative data analysis, with additional statistical models able to be applied to provide support to primary valuation methods.

Commercial properties valued by Sovereign Valuations include the majority of major and specialised asset classes, including but not limited to:

- Commercial office buildings
- Industrial holdings
- Retail premises
- Service stations
- Childcare centres
- Medical centres
- Development sites (including ‘on completion’ feasibility modelling)
- Cold store facilities
- Alpine resort holdings
- Advertising signage
- Going concern assessments

Sovereign Valuations takes pride in providing highly accurate, forensically researched and analysed valuation reports, ensuring stakeholders receive the most accurate advice possible.

The Covid-19 pandemic has significantly impacted commercial property markets and we have observed a high number of disputes between landlords and tenants when it comes to assessing market rent.

When undertaking a market rent valuation, it is important to have an understanding of both the terms of the lease including incentives, outgoings, rent review formulas and permitted use along with any relevant legislation governing the lease, which in many instances includes the provisions of the Retail Leases Act 2003 in Victoria and the Retail Leases Act 1994 in New South Wales.

Read more about market rent valuations via the link below.

www.sovereignvaluations.com.au/market-rent-valuations

Market Rent Valuations — Sovereign Valuations Market Rent Valuations Sovereign Valuations is experienced in undertaking market rent valuations and determinations with experience across all major property classes. When undertaking a market rent valuation, it is important to have an understanding of both the terms of the lease and any relevant le...

Mt Buller consists of permanently reserved Crown Land, therefore all ownership of property is via Leasehold interest. The Alpine Resorts (Management) Act 1997 states the ARMB has the power to grant leases on any land within the resort.

In this instance the developer (Company) leases the site from the Crown and the purchaser of a Unit purchases Shares in the Company (via Company Title) which stipulates exclusive rights of their unit.

An important aspect to consider is the duration of the head lease, whilst 99 year leases are preferred for purchasers, developers do not have to pay GST on 'short term' leasehold sales (

Kew Spotlight

The prestige residential market requires Valuers to have a keen eye for detail and an understanding of the differing estates and streets within suburbs.

The two premier estates of Kew are the 'Sackville Ward' and the 'Studley Park Estate'.

Sackville Ward is bound to the east by Burke Road, to the north by Cotham Road and to the south by Barkers Road, its western boundary is technically Glenferrie Road but by local 'purists' is deemed to be Edgevale Road. Demand for this pocket is largely driven by the proximity to well-regarded private schools along with the attractive streetscapes which host several large Victorian era mansions. Sackville Street has obtained the most $10 million+ sales in Kew.

The Studley Park Estate whilst having a slightly lesser regard than the Sackville Ward is a preferred location for many. It is a more rustic and undulating precinct which is situated towards the western fringe of Kew and is bound by the Yarra River to the west. Depending on the street many premier properties can feature city views. A premier Studley Park Estate street is Molesworth Street being a beautiful, wide, tree-lined street comprising some substantial holdings and being within walking distance of the Yarra River and associated parkland.

To find out more about our services visit www.sovereignvaluations.com.au

View over the Royal Botanic Gardens towards the city skyline from the Domain Park Towers in South Yarra. Our favourite view in Melbourne - what is yours?

Sovereign Valuations is experienced in providing valuation advice for family law proceedings.

https://www.sovereignvaluations.com.au/family-law-property-valuations

Family Law Property Valuations — Sovereign Valuations Family Law Property Valuations Sovereign Valuations is experienced in undertaking property valuations for Family Law purposes. Family Law property valuations require a high level of due diligence and accuracy, noting that an error as little as 1% can render a significant loss to either party. Sovere...