Ringo33
13-04-14, 17:16
MR PATRICK Tan Choon Hong alleged that property prices have risen in recent years due largely to banks matching their valuations for new launches to the developers' asking prices ("Review bank valuation process for new launches"; last Thursday). This is far from the truth.
Professional valuers do not dictate the property market but take into consideration the prevailing supply and demand conditions in the market.
Mr Tan also suggested that banks should base their valuations for new launches on past transactions and the new developments' attributes.
These are indeed the professional requirements of valuers.
A valuer considers not only the new development but also neighbouring developments in arriving at a fair and reasonable market value.
Each property is valued after taking into account its specific location and characteristics as well as the prevailing prices of comparable properties.
The new development may be specially designed with unique features that can command a higher price than neighbouring developments.
If there are actual transactions in the new development, they cannot be ignored, but valuers do not take the new development's prices without due consideration to the prevailing prices of similar developments in the neighbourhood.
Janet Han (Ms)
Secretariat
Singapore Institute of Surveyors and Value
Professional valuers do not dictate the property market but take into consideration the prevailing supply and demand conditions in the market.
Mr Tan also suggested that banks should base their valuations for new launches on past transactions and the new developments' attributes.
These are indeed the professional requirements of valuers.
A valuer considers not only the new development but also neighbouring developments in arriving at a fair and reasonable market value.
Each property is valued after taking into account its specific location and characteristics as well as the prevailing prices of comparable properties.
The new development may be specially designed with unique features that can command a higher price than neighbouring developments.
If there are actual transactions in the new development, they cannot be ignored, but valuers do not take the new development's prices without due consideration to the prevailing prices of similar developments in the neighbourhood.
Janet Han (Ms)
Secretariat
Singapore Institute of Surveyors and Value