• Pre-sale values increased for market movements when calculating gross realisations

    A gross realisation value is sometimes needed as a starting point for property valuations. Pre-sales, for example, commit the owner to a sale at an agreed price, with ownership passing at a later date, generally when the development is completed. In determining a gross realisation value, where pre-sales exist as at the valuation date, valuers should use the pre-sale prices, rather than a value which takes into account market fluctuations.

    ATO position

    Pre-sales and off-the-plan sales will define the property value and deny any market appreciation, or devaluation, and impacts on the value of property between the contract date and the valuation date.

      Last modified: 27 May 2014QC 25319