Advanced Diploma: Property Valuation and Management
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Purpose and Rationale
Purpose: The purpose of this qualification is to prepare students for entry into either a Property Valuation and Management career, or Postgraduate studies, by enabling students to:
- Apply integrated knowledge and advanced conceptual thinking skills to innovatively solve complex property valuation and management problems.
- Use a range of valuation methods, processes, and techniques competently to create, present, and argue fully motivated valuation reports.
- Demonstrate knowledge of valuation theory and conduct thorough research into valuation problems.
To achieve this purpose, the qualification is structured around two major themes, namely, Property Valuation and Management and Property Finance. The Property Valuation component contains the relevant valuation theory and is designed to enable students to apply integrated knowledge to innovatively solve complex property valuation problems and to competently use the full range of valuation methods, principles, and techniques to conduct professional property valuations. The Property Finance modules aim to develop an understanding of the South African financial environment applicable to property and property valuation.
Rationale: The draft National Plan for Higher Education from 2001 has reiterated the need for high-level skills training and the production, acquisition, and application of new knowledge to contribute to national growth and competitiveness. The Advanced Diploma: Property Valuation and Management aims to contribute to these national imperatives by providing advanced professional preparation for candidates with relevant National Diplomas, interested in becoming Professional Property Valuers.
The qualification also serves as articulation for students with National Diplomas to progress to the Bachelor of Commerce Honours: Property Valuation and Management, addressing the need for postgraduate qualifications in the field. The Department of Finance and Investment Management collaborated with the Property Valuation industry to ensure suitable articulation for non-related Bachelor's qualifications to an Honour's in Property Valuation and Management. The Advanced Diploma is aligned with the requirements of the South African Council for the Property Valuers Profession (SACPVP) for registration as a Professional Valuer, further enhancing its relevance and value.
Outcomes
- Relate knowledge of basic building construction, building contracts and the construction process to the valuation of property in general and the valuation of a single residential property.
- Conduct mass valuations, valuations on income producing properties and valuations of undeveloped property by applying discounted cash flow and feasibility studies' methodologies.
- Apply important mathematical and statistical skills to solve problems in a finance environment.
- Apply the concept of time value of money in property valuation and management.
- Apply the basic concepts of discounted cash flow models. Critical Cross-Field Outcomes: Identify and solve problems in property valuation and management using critical and creative thinking processes. Work effectively as a member of a team, group, organisation or community to maximise opportunities in a property valuation and management environment. Organise and manage themselves and their activities responsibly and effectively to achieve their goals within property valuation and management. Collect, analyse, organise and critically evaluate information to effectively conduct property valuation and management assignments. Communicate effectively using visual, mathematical and/or language in the modes of oral and/or written format to discuss outcomes of property valuation and management assignments. Use science and technology effectively, showing responsibility to the environment and health of others to keep abreast of the latest developments relating to property valuation and management. Demonstrate an understanding of the world as a set of interrelated systems by recognising that property valuation and management do not exist in isolation and that a variety of factors can affect the property valuation and management environment. Participate as a responsible citizen in the life of local, national and global communities by ensuring that own property valuation and management competencies are constantly improved in order to provide good service to clients.
Assessment Criteria
Exit Level Outcome 1:
- Differentiate between the different building contracts
- Describe the role of the valuer in the property industry
- Recommend solutions to resolve problems associated with swelling clay
- Conduct an inspection to identify problems in an existing building
- Estimate the building cost of a residential property accurately
- Explain the present-day definition of market value as established by the South African Courts
- Apply the concept of market value in the valuation of a specific property
Exit Level Outcome 2:
- Accurately discuss the relationship between value without potential, potential, and highest and best use
- Make market adjustments to reflect market realities
- Clearly define, accurately calculate and adequately interpret the results of a capitalization rate
- Determine the replacement cost of a property for insurance purposes
- Conduct and compile a fully motivated valuation report on an income-producing property
- Conduct a valuation of an undeveloped property by using a discounted cash flow
- Apply feasibility study concepts to a given property and compile a fully motivated valuation report
Exit Level Outcome 3:
- Use basic mathematical knowledge and skills to demonstrate the order of operations in formulae
- Solve and apply simple and quadratic equations
- Prepare correct tabulations of data and draw and interpret histograms
- Calculate statistical measures for both ungrouped and grouped data
- Calculate simple probability and apply probability rules
- Explain and calculate properties of normal distribution
- Calculate correlation coefficient and coefficient of determination
- Determine and apply regression equation between two variables
Exit Level Outcome 4:
- Explain the concept of time value of money
- Perform and interpret simple and compound interest calculations
- Distinguish between discrete and continuous compounding
- Explain effective interest rates and nominal interest rates
- Convert between effective interest rates and nominal interest rates
- Perform amortization and draw up amortization tables
- Apply Net Present Value (NPV) and Internal Rate of Return (IRR) to cash flow streams
Exit Level Outcome 5:
- Discuss basic financial project appraisal methods with the emphasis on discounted cash flow
- Integrate time value of money into DCF
- Eliminate non-cash flow items from information to construct a DCF model
- Construct a basic DCF model
Integrated Assessment:
- Formative assessment opportunities include formal written assessments, assignments, and class assessments.
- Summative assessment opportunities consist of final examination papers with a combination of objective test questions, short questions, and case study questions.
Qualification Details
- Type
- Advanced Diploma
- NQF Level
- 07
- Min. Credits
- 120
- SAQA Source
- More Information
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