Factors influencing the choice of depreciation method for valuation purposes

The current study examined the factors influencing valuers' choice of depreciation method for property valuation purposes. Using a mean consensus analytical framework, we demonstrate that the factor of appropriateness is the main driver influencing valuers' choice of depreciation method with a very high consensus value. This takes precedence over the simplicity of the depreciation method and valuer's familiarity with the method both of which had a consensus score a little above average. The study recommends further research into the factors influencing the choice of depreciation rate when applying the various methods of depreciation.