24-01-2011, 10:11 AM
This is the definition given by from Evelyn Chang Executive Director Singapore Institute of Surveyors and Valuers:
Valuation reflects the state of the market and the demand and supply situation. The final selling price of a property is dependent on the demand and supply of a property and the negotiation between the buyer and seller.
Essentially this is what valuation is... the rest below is just some spinning to give it justification.
The improved sentiment in the economy as seen in the recent months is reflected in the valuation of HDB properties. The market value of a property is determined on the basis of a willing buyer and a willing seller, with both parties acting with knowledge, prudence and without compulsion in an arm's-length transaction.
For homogeneous properties such as HDB flats, the common valuation method adopted is the direct comparison approach. This approach is similar to that used by a potential buyer when considering the purchase of a flat. He would look at the location, consider the age, size, design, height and other important characteristics of the flat and compare the prices paid for comparable flats in the locality.
The final selling price of a property is dependent on the demand and supply of a property and the negotiation between the buyer and seller. Some buyers may pay a premium for a flat for personal reasons. It is the willing buyer and seller that determines the final price and this final price as considered by the market forces can be above or below the valuation.
Valuation reflects the state of the market and the demand and supply situation. The final selling price of a property is dependent on the demand and supply of a property and the negotiation between the buyer and seller.
Essentially this is what valuation is... the rest below is just some spinning to give it justification.
The improved sentiment in the economy as seen in the recent months is reflected in the valuation of HDB properties. The market value of a property is determined on the basis of a willing buyer and a willing seller, with both parties acting with knowledge, prudence and without compulsion in an arm's-length transaction.
For homogeneous properties such as HDB flats, the common valuation method adopted is the direct comparison approach. This approach is similar to that used by a potential buyer when considering the purchase of a flat. He would look at the location, consider the age, size, design, height and other important characteristics of the flat and compare the prices paid for comparable flats in the locality.
The final selling price of a property is dependent on the demand and supply of a property and the negotiation between the buyer and seller. Some buyers may pay a premium for a flat for personal reasons. It is the willing buyer and seller that determines the final price and this final price as considered by the market forces can be above or below the valuation.