When valuing a mixed-use property with both retail and residential components, which approach would be most appropriate according to Australian valuation practice?
Correct Answer
D) Apply suitable approaches to each component and sum the results
For mixed-use properties, best practice is to value each component separately using the most appropriate method for that use (e.g., capitalisation for retail, comparison for residential) and then sum the individual valuations. This approach recognises that different property types have different market characteristics and valuation requirements.
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