New property valuation method provides stability in fluctuating markets.
The article introduces a new method for valuing cyclical assets called cyclical capitalization. This method aims to provide a stable opinion of value for properties that fluctuate with the market cycle. By analyzing property market rent data in London, the researchers found that cyclical capitalization can offer a more reliable valuation compared to traditional methods. This approach could be useful for determining the value of cyclical assets and making mortgage lending decisions.