The idea that valuation is an art, not a science, is hardly mentioned these days

The idea that valuation is an art, not a science, is hardly mentioned these days

The idea that valuation is an art, not a science, is hardly mentioned these days.

As an art form, valuation had adopted the status of a mystical skill. Closely guarded secrets were passed down from one generation of valuers to another, with the reason for adopting certain practices being explained by years of accumulated wisdom. This approach was probably explainable in a world that had little real information, was inactive and relied on the belief that property had some special value that set it apart from other forms of investment. The need to justify a valuation or an investment decision was not something that could be realistically applied to property.

Over the last decade, however, property valuation has begun to embrace the ideas that have dominated finance for the last four decades. We now live in a brave new world that is ruled by the need for information and statistics. Valuers have to justify their decisions in quantitative terms and can no longer rely on the art versus science argument. Property is part of the capital markets.

What we are witnessing is the evolution of a discipline and what you are reading is the next step in its development. The merging of the Journal of Property Valuation & Investment with the Journal of Property Finance has become necessary because the fields covered by both journals have become so close that it seemed the logical thing to do. During 1998 the title of both journals will appear on the cover but in 1999 it will change to the Journal of Property Investment & Finance. The proposed title reflects the view that the theory and practice of property valuation is just one part of the field of investment. Major developments in property valuation and investment management will only come about as a result of extending the ideas and theories developed in finance.

During 1998 the merged journals will undergo a number of changes prior to the launch of the Journal of Property Investment & Finance. The intention is to retain the best of both journals and introduce some new features. Our intention is, however, to publish good academic papers that are an important source of reference for those who are interested in property valuation and investment.

Gerald R. BrownProfessor of Property Development & Asset Management, University of Salford