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Presentation
The valuation of self-funded retirement villages in Australia: Analysis, reliability and investment valuation methodology
Paper presented at the 8th annual Pacific Rim Real Estate Society (PRRES) conference (2002)
  • Peter Elliott
  • George Earl
  • Richard Reed
Abstract

Changing demographics will see an increasing demand for self-funded sector retirement villages in Australia. As such, valuers can expect to be more involved in providing valuation advice in this sector, although the central issue remains that retirement villages are complex businesses. They have been described as management intensive operating businesses with a substantial real estate element. As a result the valuation process in this sector requires a different type of analysis, in comparison to the traditional real estate based investment.

This paper provides an analysis of recent trends in the demand for retirement villages and examines current practise with respect to valuation thereof. It emphasises the need for a greater awareness of the ‘business enterprise value’ component and provides a framework within which the components of value can be better understood. The purpose of the paper is to provide a foundation for a greater reliability with respect to valuation advice.

© Copyright Peter Elliott, George Earl & Richard Reed, 2002

Keywords
  • retirement village,
  • valuation,
  • self-funded
Disciplines
Publication Date
January 23, 2002
Citation Information
Peter Elliott, George Earl and Richard Reed. "The valuation of self-funded retirement villages in Australia: Analysis, reliability and investment valuation methodology" Paper presented at the 8th annual Pacific Rim Real Estate Society (PRRES) conference (2002)
Available at: http://works.bepress.com/george_earl/4/