Property valuation plays a pivotal role in the real estate sector in Singapore. Whether it is for buying, selling, financing or taxation, an accurate valuation helps all parties involved make informed decisions. The process is far more than just assigning a number to a property—it involves a structured sequence of procedures known as valuation reporting. Understanding these steps offers greater transparency and builds trust in the figures presented.

Understanding The Purpose Of The Valuation

Every valuation begins with a clearly defined objective. Before any assessments can be carried out, the valuer must establish the reason for the valuation. Common purposes include sale transactions, mortgage lending, insurance, rental assessments, or government acquisition. In the context of property valuation in Singapore, clear intentions ensure compliance with local regulations and the selection of suitable methodologies. Once the purpose is established, the valuation report is tailored accordingly.

Collecting Key Property Information

The second step in valuation reporting is the gathering of relevant property data. This typically involves a site inspection to observe the physical condition, location, layout, floor area, and other essential features. Alongside this, documentary evidence such as title deeds, land size, building permits, tenancy agreements and property tax bills are reviewed.

In Singapore, this stage is crucial due to the island’s varied zoning laws and development guidelines. A valuer must ensure that the property adheres to Urban Redevelopment Authority (URA) regulations and understand the implications of the property’s leasehold or freehold status.

Analysing The Market And Comparable Sales

Next, the valuer conducts a detailed market analysis. This includes studying recent transactions involving similar properties in the area, rental income trends, and market demand. By comparing sales of comparable units within the vicinity, the valuer can benchmark the subject property’s market value against prevailing conditions.

For example, when conducting valuation reporting on a condominium in Queenstown, the valuer would look at similar-sized units in the same or nearby developments sold within the last six months. Adjustments may be made based on differences in floor level, facing, condition, and amenities.

Choosing The Appropriate Valuation Method

There are several standard valuation methods used in Singapore, each suited to different types of properties and objectives. The three primary methods are:

  • The Comparable Sales Method: Often used for residential properties, this method assesses value based on recent sales of similar properties.
  • The Income Approach: More relevant to investment or rental properties, this calculates value based on potential rental income.
  • The Cost Method: Commonly used for special-purpose properties, this method determines value by calculating the cost to replace the property minus depreciation.

The choice of method depends on the valuation’s purpose, the property type, and the availability of market data.

Preparing The Draft Report

Once the data and analysis are complete, the valuer compiles a draft report. This document includes all essential details such as the property’s location, legal descriptions, photographs, valuation methodology, and final valuation figure. The assumptions and limitations of the valuation are also stated to ensure clarity.

At this stage of valuation reporting, accuracy is critical. Any inconsistencies or unverified data can lead to disputes or mistrust in the report’s validity. Professional standards such as those set by the Singapore Institute of Surveyors and Valuers (SISV) guide the structure and format of the report.

Reviewing And Finalising The Report

Before submission, the draft report undergoes an internal review. This ensures that the valuation complies with industry standards and has been executed with due diligence. In cases where the report is to be used for financial or legal purposes, peer review and compliance checks are especially rigorous.

After making any necessary revisions, the valuer finalises the document. For valuation reporting used in mortgage applications, the report may be forwarded to banks or financial institutions as part of their property loan assessment.

Issuing And Using The Valuation Report

Once complete, the report is issued to the client. This document becomes an official reference and may be used in negotiations, tax submissions, court proceedings, or bank evaluations. In Singapore, where property investments carry high stakes, a professionally prepared valuation report supports sound decision-making.

For example, a buyer might use the report to justify a lower purchase offer, while a seller could rely on it to back a premium asking price. For banks, it provides confidence in the property’s worth as collateral.

In the process of property valuation in Singapore, this final step ensures that all stakeholders are working with a shared and credible understanding of the property’s value.

Conclusion

Valuation reporting is a comprehensive and methodical process that ensures objectivity, accuracy, and transparency. From setting the valuation objective to issuing the final report, each step plays a crucial role in determining the true market value of a property. For property owners, investors, and institutions in Singapore, engaging a qualified valuer and understanding these steps can lead to more confident and data-driven decisions.

Get to know more about CKS Property to find out how valuation reporting can benefit your property goals.