Property valuations play a vital role in Australia’s real estate and financial landscape. Whether you’re refinancing, investing, resolving a legal matter or preparing to sell, the type of valuation you obtain—and the context in which it’s used—can make a significant difference.
This guide unpacks the different types of property valuations available across Australia, who needs them, what they include, and how to ensure you’re getting the right valuation for your specific situation.
What Are Property Valuations?
A property valuation is a professional, formal assessment of the current market value of a property. Unlike real estate agent appraisals, which are usually free and based on marketing potential, valuations are:
- Prepared by Certified Practising Valuers (CPVs)
- Backed by formal methods, evidence, and comparable sales
- Accepted by lenders, courts, tax authorities, and insurers
- Often legally binding depending on the purpose
The Main Types of Property Valuations in Australia
Different circumstances require different valuation approaches. Here’s a breakdown of the most common types of property valuations used by individuals, businesses, and institutions.
Market Value Valuation
- Purpose: Buying, selling, refinancing, or portfolio review
- Focus: Fair market value based on similar local sales
- Who Needs It: Homeowners, buyers, banks, investors
- Report Includes: Property inspection, comparable data, condition, improvements, final market value
Capital Gains Tax (CGT) Valuation
- Purpose: Calculating capital gains liability when selling an investment property
- Focus: Market value at a specific date (often when property was inherited or changed use)
- Who Needs It: Investors, accountants, property owners
- Requirement: Accepted by the ATO and used in tax submissions
Family Law or Legal Valuation
- Purpose: Divorce settlements, estate planning, or disputes
- Focus: Objective and defensible market value
- Who Needs It: Lawyers, courts, individuals involved in property division
- Format: Structured to meet Family Court or Supreme Court guidelines
Insurance Valuation
- Purpose: Calculating building replacement cost for home or landlord insurance
- Focus: Cost to rebuild the property (not market value)
- Includes: Site clearance, construction, labour, legal and council fees
Rental Assessment Valuation
- Purpose: Estimating fair market rent
- Focus: Rental demand, location, property features, and leasing history
- Who Needs It: Landlords, tenants, commercial property managers
Stamp Duty or Transfer Valuation
- Purpose: Required when transferring property between family members or entities
- Focus: Current market value for legal documentation
- Who Needs It: Solicitors, trustees, government reporting
Commercial vs Residential Valuations
While the principles remain similar, commercial property valuations involve:
- Complex leases and tenancies
- Net rental yields and capitalisation rates
- Zoning for business or industrial use
- Longer and more detailed reports
Cost of Property Valuations in Australia
Pricing varies depending on location, urgency, and type of report:
| Valuation Type | Typical Cost (AUD) |
| Residential Valuation | $350 – $600 |
| Commercial Valuation | $1,000 – $4,000+ |
| Family Law Valuation | $700 – $1,200 |
| Insurance Valuation | $400 – $900 |
| CGT/Stamp Duty Valuation | $450 – $750 |
Turnaround time is usually 2 to 5 business days.
What a Property Valuation Report Includes
- Full property description and land title details
- Zoning and planning information
- Improvements and building quality
- Market conditions and comparable sales
- Valuer’s notes on risks or constraints
- Methodology and final market value figure
For legal or financial uses, ensure the report meets the compliance standards of your bank, accountant, or lawyer.
How to Choose the Right Type of Property Valuation
Ask yourself:
- What is the valuation for? (e.g., refinancing, divorce, selling)
- Who will use the report? (bank, court, tax office, insurer)
- Is there a deadline? (some legal matters require urgent delivery)
- Do you need a valuer familiar with your suburb or region?
Only work with a Certified Practising Valuer (CPV) who is registered with the Australian Property Institute (API) and has relevant experience in your location and property type.
Conclusion
Not all property valuations are created equal. The right valuation gives you confidence in your next step—whether you’re selling a home, planning an investment, resolving a legal matter, or protecting your assets.
With Australia’s market in constant motion, don’t rely on guesswork or free appraisals. Instead, choose a qualified valuer, select the appropriate valuation type, and make informed decisions with clarity and confidence.
