You have been asked to determine the open market rental value of shop A as shown in the figure below.

You found that an adjacent shop (Shop B) has recently been let in the open market for $1,080,000 per annum. Shop B is rectangular with a net frontage of 8 meters and a net depth of 11 meters and is a single-story structure. Shop A has the same depth but it has return frontage (i.e. two access points from two roads) and its size is 11m × 9m. The two pedestrian roads which Shop A is facing are equally busy with pedestrians

Required:
(a) Explain the meaning of Open Market Value (OMV) of a property and state four underlying assumptions in the determination of this value.
(b) Draw the above two shops and divide them into zones in accordance with the zoning method with necessary labels. (6 marks) Note: You may assume that each zone has a depth of 7 meters.
(c) Determine the open market rental value of shop A.
 

Pedestrian Road Shop A Shop B Pedestrian Road