PROPERTY VALUATION PRACTICE IN SINGAPORE (circulated to members on 1 April 2011)
PROPERTY VALUATION PRACTICE IN SINGAPORE
In our bid to address the Valuers’ concerns in their practice, SISV recently organised a dialogue session with the SISV member firms’ authorised representatives. Among other things, the dialogue revealed the prevailing practice of Valuers undertaking desktop valuations as well as endorsements of indicative values for private residential, commercial, and industrial properties to meet the "needs" of some financial institutions.
Valuers’ endorsement of indicative valuations for properties not inspected beforehand is not a subscribed valuation practice. The prevalence of desktop valuation and/or endorsement practice has been quite widespread among the financial institutions in Singapore and such practice, if allowed to continue, has grave impact on the professionalism, image and the livelihood of the profession.
The Institute takes a serious view of the ongoing desktop valuation practice as well as endorsements of indicative values currently practised in the marketplace. To endorse on a value to an uninspected property is not a subscribed valuation practice. The Institute appeals to all members to rally around to support the Institute’s initiative to halt such a practice. Such practice undermines the professionalism of Valuers. Valuers are advised to observe the Institute’s Code of Ethics so to uphold the high standards of valuation practice as one to be synonymous with integrity and credibility.
We are currently engaging the Monetary Authority of Singapore (MAS) and the Inland Revenue Authority of Singapore (IRAS) to seek the authorities’ assistance in regulating the valuation practice, particularly in the sector involving the financial institutions in Singapore.
Being professionals, we look forward to your subscription to the Institute’s professional valuation standards in your practice. Together we can bring this profession to higher recognition in the market place and we need your support.