n Management Dynamics : Journal of the Southern African Institute for Management Scientists - The accuracy of the Johannesburg provisional valuation roll, 2001
|Article Title||The accuracy of the Johannesburg provisional valuation roll, 2001|
|© Publisher:||Southern African Institute for Management Scientists (SAIMS)|
|Journal||Management Dynamics : Journal of the Southern African Institute for Management Scientists|
|Publication Date||Jan 2008|
|Pages||2 - 13|
The accuracy of property valuations is of concern worldwide. The past decade has seen an escalation in studies that seek to verify valuation accuracy. The literature broadly agrees on what the accuracy standard should be, and the International Association of Assessing Officers (IAAO) has set formal standards for accuracy studies.
Across South Africa, municipal valuations are currently under way for the purpose of levying assessment rates under the new Local Government: Municipal Property Rates Act 6 of 2004. This study attempts to assess the accuracy of the Johannesburg provisional valuation for 2001, as an indicator of what to expect in the new valuation roll. The study applies the standard IAAO tests, as well as the t-test and Wilcoxon signed ranks test to assess accuracy and make management recommendations. The Johannesburg provisional valuation roll achieves the required international accuracy standard. However, lower-priced properties are overvalued and higher-priced properties are undervalued.
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