jq75
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Property valuers follow guidelines, not prices
Published on Mar 14, 2014
WE REFER to the comment made by Mr Mohamed Ismail Gafoor of PropNex Realty that "HDB-appointed valuers could follow the practice in the private market, and largely match their valuations to the reported price" in an article ("Rise and fall of COV - the property mover"; Wednesday).
The Singapore Institute of Surveyors and Valuers (SISV), the national body representing the valuation profession, regrets Mr Ismail's comment, which casts aspersions on the professionalism and integrity of valuers.
In the valuation of all properties, be it HDB flats or private properties, valuers have to adopt the principles of valuation as prescribed in SISV's valuation standards and guidelines.
The market value of a property is the estimated amount for which the property should exchange on the valuation date between a willing buyer and a willing seller, in an arm's length transaction after proper marketing and where the parties have each acted knowledgeably, prudently and without compulsion.
The price of a property is the amount asked, offered, or paid for the property. Due to the financial capabilities, motivations or special interests of any given buyer and seller, the price paid for the property may or may not have any relation to the value that might be ascribed to the property.
While transacted prices can be a good indication of the market value of a property, it does not follow that a valuer will largely match the value of a property to its reported price.
Janet Han (Ms)
Secretariat
Singapore Institute of Surveyors and Valuers
Published on Mar 14, 2014
WE REFER to the comment made by Mr Mohamed Ismail Gafoor of PropNex Realty that "HDB-appointed valuers could follow the practice in the private market, and largely match their valuations to the reported price" in an article ("Rise and fall of COV - the property mover"; Wednesday).
The Singapore Institute of Surveyors and Valuers (SISV), the national body representing the valuation profession, regrets Mr Ismail's comment, which casts aspersions on the professionalism and integrity of valuers.
In the valuation of all properties, be it HDB flats or private properties, valuers have to adopt the principles of valuation as prescribed in SISV's valuation standards and guidelines.
The market value of a property is the estimated amount for which the property should exchange on the valuation date between a willing buyer and a willing seller, in an arm's length transaction after proper marketing and where the parties have each acted knowledgeably, prudently and without compulsion.
The price of a property is the amount asked, offered, or paid for the property. Due to the financial capabilities, motivations or special interests of any given buyer and seller, the price paid for the property may or may not have any relation to the value that might be ascribed to the property.
While transacted prices can be a good indication of the market value of a property, it does not follow that a valuer will largely match the value of a property to its reported price.
Janet Han (Ms)
Secretariat
Singapore Institute of Surveyors and Valuers