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VGP Express Singapore Institute of Surveyors and Valuers
Joint PVAI-SISV Valuation Conference New Delhi - 16th to 18th August 2015
27th VGP Council 2015/2017 President
Dr Lim Lan Yuan
1st Vice President
Tan Choi Heng
2nd Vice President
Goh Heng Hoon
Asst Hon Secretary
Council Members Ivy Tan
Png Poh Soon
Tan Keng Chiam
Soh Chor Yin
To continuously promote mutual co-operation and exchanges with fellow crossborder practicing valuation organizations, the VGP has recently renewed its Memorandum Of Cooperation with the Institution of Valuers (India) (IOV) during its recent trip to India where its representatives comprising Dr Lim Lan Yuan (President, VGP), Mr Tan Choi Heng (1st Vice President) and Ms Teo Li Kim (Director, Project) attended the first joint Practising Valuers Association India (PVAI) – SISV Valuation Conference 2015 in New Delh from 16th-18th August 2015. The next joint PVAI-SISV Valuation Conference 2016 will be hosted by the VGP in Singapore. This is likely to be a date in early May 2016 and talks in Business Valuation and Valuation of Plant are some of the interesting sessions for the Conference. If you are keen to participate or deliver a talk for this joint Cross-Border Valuation Conference, please contact Li Kim at 6424 0288 or email her at [email protected]
Save the Date! Inaugural SISV Valuation Conference 2015
33rd SISV Annual Dinner
7th WAVO Congress (Beijing, China)
SISV Workshop on Green Buildings & Sustainability
16th Oct 2015
29th Oct 2015
12th Nov 2015
17th Nov 2015
Inaugural SISV Valuation Conference 2015 Friday 16th October 2015, York Hotel SISV (VGP) : 4 CPD Credit Hours
The VGP will be hosting the inaugural SISV Valuation Conference on 16th October 2015 at York Hotel, Mount Elizabeth. The theme for the Conference is “Real Estate and Business Valuations – Trends and Challenges Ahead” with the purpose of discussing issues facing professionals in the valuation practice. For this whole day Conference, the speakers will share their expertise and knowledge on methods of valuation for various types of properties including valuation of plant & machinery, specialized properties, valuation of JTC industrial property, business valuation and property tax matters. You will also get insights on future trends affecting the property market and understand policies governing Compulsory Land Acquisition & Land Compensation from the Singapore Land Authority. You will be able to clock SISV CPD points for this Conference and for which you are allowed to carry the points over to the new calendar year 2016. The latest updated SISV VALUATION STANDARDS AND PRACTICE GUIDELINES (2015) will be officially launched at this inaugural Valuation Conference. Every participant of the Conference will receive a FREE copy of the above book with terms and conditions applied.
Singapore Realtors Conference 2015 Organised by SISV supported by APFM and FIABCI Singapore The SISV successfully hosted the Singapore Realtors Conference 2015 on Thursday 27th August 2015. The half day Conference was attended by some 100 participants comprising many KEOs and salespersons from various estate agents, property consultancy firms as well as other attendees from relevant authorities mainly BCA and MND. The theme of the Conference “The Practice of Estate Agency – How to Stay Relevant in a Volatile Market” is most apt as the real estate industry in a tight Singapore market is seen to be in a state of inflexion. The participants learned at the Conference that the agency business is no longer facing increasing competition locally but also other external competition from markets in the region because of technology and connectivity. Despite these external threats, there are also opportunities awaiting them in new and growing markets like China, India, Myanmar, etc, which are still largely untapped. The VGP would like to thank all speakers, panelists and members who have supported and attended the Conference this year. We look forward to seeing you next year. 2
VGP IN ACTION The VGP was recently invited by the HDB to attend its annual Professional Engagement and Knowledge-sharing (PEAK) Forum on 10th September 2015. This invitation is part of the continuous engagement between the VGP and statutory boards like the HDB. The forum was attended by Mr Tan Choi Heng (1st Vice President, VGP), Mr Richard Tay (Assistant Hon Sec, VGP) and Ms Teo Li Kim (Director, Project). After the Forum, the representatives from VGP attended the tour to Rumah Tinggi Mount ECHO Park and Sky Terrace @ Dawson. The 1.3ha Mount Echo Park, located in Alexandra Road, sits on former railway land of which the stretch of track has since been reconverted into a park serving residents in the locality while the development SkyTerrace @ Dawson was designed with three key concepts mainly “housing in a park, connectivity to surroundings and multi-generational living”.
The Valuation Committee will continue to work on developing the professional practice in valuation by engaging members in dialogue sessions, presentations and workshops with fellow veteran members in the Institute as well as with special invitees from local private property-related organizations and/or various relevant Government Ministries or Statutory Boards and international practicing institutes. These initiatives will form part of the effort by VGP to raise the profile and reputation of members in the Institute. The Estate Agency Committee conducted a dialogue with our Certified Real Estate Agent (CREA) members on 13th July 2015. The dialogue discussed on how the CREA scheme can be revamped to bring more relevance and benefits to our members. Areas discussed include offering discounted rate for CPD courses, subscriptions to SISVRealink and Nationproperty portal and to hold more regular dialogues for industry updates. 3
The Property and Facility Management Committee is planning a series of lectures about building maintenance and strata management. These lectures will also be CPD activities for property management members. Proposed topics for these lectures include: (a) a series of lectures on building maintenance and strata management (b) a series of lectures on building defects (c) a talk on risk management & insurance (d) a talk on Trees in Private Property (e) a talk on Green Buildings Members who are practicing property management who are interested to deliver any of the above lectures, please contact Janet at DID 64240282 or email [email protected]
We are also keen to hear from you on your suggestion of other topics which you may be interested to attend for CPD.
HIGHLIGHTS OF KEY EVENTS AND ACTIVITIES FIABCI (International Real Estate Federation) FIABCI hosted the Asia Pacific Real Estate Congress (APREC) in Honolulu, Hawaii from 10th to 12th September 2015. The organizing committee had lined up an impressive number of speakers and sponsors for the participants to experience a genuine “Aloha” spirit. The Belgium Chapter will host FIABCI December Business Meetings in Brussels from 2nd to 5th December 2015. The Meetings provide the opportunity for all FIABCI World Councils and FIABCI Committees to hold their formal meetings to advance their work on a global basis. In addition, there will be working sessions as well as an abundance of marketing and networking opportunities. Please email [email protected]
to register your interest to attend the Business Meetings.
WORLD ASSOCIATION OF VALUATION ORGANISATIONS The World Association of Valuation Organisations (WAVO) will be having its 7th WAVO Valuation Congress on 12th November 2015 in Beijing, China. For members who are keen to participate as delegates in this upcoming Congress in China, please register your interest with [email protected]
by mid October 2015. Secretariats would be advising you on the logistics flight charges, hotel, etc when you have registered your interest. At this Congress you will meet other international speakers thus giving you a plethora of opportunities for business and knowledge networking. This is an event which you should not missed as conducting business in the real estate market today goes beyond the realm in Singapore. This WAVO Valuation Congress is a dynamic platform for local valuers to share and interact with other regional valuers/practicing professionals from the US, Australia, China, Hong Kong, and many others in the Asia Pacific region. 4
LOCAL NEWS / VGP INITIATIVES Young Members Committee Organizing talks by real estate veterans or fellow members of the Institute is an important agenda for the Young Members Committee of the VGP so as to constantly engage its young and student members. Recently the VGP invited Ms Ng Hsueh Ling, the Chief Executive Officer and Executive Director of Keppel REIT Management Limited to the Institute which saw her delivering an inspiring talk for these young professionals. There was a large and enthusiastic young crowd who greeted Ms Ng at SISV on 24th July 2015 where she shared valuable insights on the topic “REITS Market” or Real Estate Investments Trust Market. These participants were engrossed and captivated as she discussed about the Singapore’s REIT Industry including Keppel REIT and also dwelt on the advantages and disadvantages of REITS. Ms Ng encouraged these young members to look towards joining the REITS industry. There was an engaging Q&A session following the talk and it ended with Dr Lim Lan Yuan, President (VGP) presenting Ms Ng with a token of appreciation.
SISV Annual Dinner SISV will be celebrating its 33rd Annual Dinner 2015 on Thursday, 29th October 2015 @ Grand Copthorne Waterfront Hotel. This annual get-together event will be attended by members from the real estate and construction fraternity. For this year, it is our nation’s SG50 Golden Jubilee Year and to celebrate this very special occasion, the Annual Dinner Organising Committee has lined up a series of exciting, fun and interactive events to keep members entertained throughout the night. With its theme, Denim & Glitters, it will be a fantastic night filled with fun, laughter & joy. The registration form is available via SISV website. Please register early and we are looking forward to seeing you at the forthcoming Annual Dinner.
VGP Members Login VGP members are reminded to log-in to the SISV website (www.sisv.org.sg) to update their personal contacts. This is to ensure that you are being kept posted on any upcoming events, seminars, activities that have been planned by the VGP or the Institute by email or other electronic means. VGP will also be using the same portal to register and keep record of the individual member’s CPD hours.
Automated Valuation Models : Risks & Threats The Institute had responded to an article “Online price checks by homeowners” published in the Straits Times on 8th July 2015 on SRX’s launch of their new online service. In the article, it was mentioned that “… It is a more consistent process than if the valuation process was done by humans… not all valuers would be aware of location characteristics …”. The Institute wishes to respond to two issues raised in the statement as reported. Firstly, the issue of consistent process. The computers using statistical logarithms are good tools to process and organise data and information efficiently to assist the valuers in their analysis and determination of the market value of a property. The process of interpreting and rationalizing the market trends and value is something that the computer will not be able to take the place of humans. Secondly, on the note of valuers not being aware of location characteristics, the institute wishes to enlighten everyone that our members are trained in the field of real estate laws, construction technologies, urban planning, economics, real estate finance, etc at the tertiary institutions. Our members are regulated by the Inland Revenue Authority of Singapore under the Appraiser Act with the Singapore Institute of Surveyors and Valuers, a professional body, overseeing the professional standards of practice. The Practice Standard requires valuers to carry out proper investigations on all matters physically and legally pertaining to the property, which cannot be carried out by the computer, before the value of the property can be determined. Inspection of the property is necessary not only to appreciate the physical attributes and locational attributes but also intrinsic attributes. Furthermore, there are other issues such as non-compliant use and structures that compromise safety and regulations, defects in the property and all other material issues which affect the value of the property that will not be “detected” by the computer and reflected in the values and prices. The computer/computer program can only help to streamline information analysis in a mechanical way depending on how the variables/adjustments are set therein. The final value estimate will still require the professional judgment of the valuer to determine which factors are important and the amount that should be adjusted. It is therefore incorrect to say that the computer process is a more consistent and presumably a more accurate process than that of a human being or to state that valuers are not aware of location characteristics as compared to computers. An important training of a professional valuer is to understand the intricacies of the characteristics of the location that affect value. This is a fundamental skill of a valuer. The Institute would therefore advise the general public and home owners of the risks of relying on price or value generated by computer programmes to make their property purchase or investment decisions. Our valuers members are also advised not to endorse such automated valuation models as valuations.
VGP CPD COURSES Certificate in Marketing of Industrial Properties – Commencing January 2016
(Endorsed by CEA – CPD credits to be confirmed) This Certificate Course is to equip estate agents/salespersons on the fundamentals in marketing industrial properties in Singapore. As JTC and HDB are the two largest developers and managers of industrial properties in Singapore, it is necessary that estate agents/salespersons be informed of the policies and regulations of JTC and HDB with regard to the use and occupation of industrial properties. In addition, estate agents/salespersons should be acquainted with the relevant portions of the guides and regulations introduced by CEA and other relevant authorities that relate to the marketing of industrial properties. The process, techniques and the various types of marketing activities will be taught in this course to equip estate agents/salespersons with the essential tools to successfully market industrial properties. These skills include both selling and leasing industrial properties.
SISV - Workshop on Green Buildings and Sustainability
In Strategic Partnership with :
17th November 2015 (9.00am – 12.30pm) SISV (VGP) : 2 CPD Credit Hours Since the Earth Summit held in Rio De Janerio in 1992, initiatives on green buildings and sustainability have taken great leaps. A number of countries and cities have undertaken business studies to justify the expenditures of green initiatives and introduced measures to certify green buildings. The initial efforts focus on costs of green buildings. Recent research has shown that values of green buildings outweigh the expenditures incurred in making buildings green. This Workshop will explore in greater details the policies and initiatives of green buildings and the importance of understanding the value elements of green buildings including the cost benefits of retrofitting existing buildings into green
Green Buildings Policies and Policies (by BCA); SISV Valuation Standards buildings. Four sub-themes will be discussed in this Workshop namely:
and Reports on Green Buildings, Valuation of Green Buildings and Case Studies on Retrofitting Existing Buildings into Green Buildings. So join us for this planetary green session. Will keep you informed of venue/registration fees in due course.
Guidelines For Continuing Professional Development (CPD) Requirements The SISV Bylaws on CPD provide that every VGP Fellow and Member must complete 60 hours CPD in every consecutive period of 3 calendar years (January to December). To qualify as CPD, the activities must be related to: Some parts of the theory and practice of valuation and related disciplines such as estate management, estate agency and general consultancy, or other technical topics related to a member’s current or potential occupation, and/or personal or business skills designed to increase a member’s management or business efficiency. For details, please read : http://www.sisv.org.sg/membership-cpd. Recording and operational requirements The VGP secretariat will provide the number of credit hours for every conference, workshop or seminar and course either organised or endorsed by the VGP Council and Institute including the provision of a certificate of attendance indicating the hours attended. The record of individual members’ CPD hours will also be kept by the secretariat. For details on the list of CPD activities and further enquiries, please check SISV website at http://www.sisv.org.sg 7
KEY CIRCULARS / NEWS ISSUED BY AUTHORITIES Building and Construction Authority 22 July 2015
Design of structural steel in buildings (including pre-fabricated & prefinished volumetric construction) – Guidelines on provision for corrosion protection and periodic structural inspection
17 August 2015
Launch of BCA Universal Design (UD) Mark Version 2.0 (2015)
Council For Estate Agencies 20 July 2015
Update on HDB Industrial Properties Policies – Revised Assignment Policy Revised Subletting Policy
4 August 2015
Advertising Standard Authority of Singapore’s Enhanced Guidelines to Singapore Code of Advertising Practice
17 September 2015
Practice Circular On The Prevention of Money Laundering and Countering The Financing Of Terrorism
28 September 2015
Unauthorised Use Of Residential Properties For Housing Of Foreign Workers
Housing Development Board 24 July 2015
Release of 2nd Quarter 2015 Public Housing Data
Ministry Of National Development 19 August 2015
2-Room Flexi Scheme – Meeting Diverse Housing Needs
24 August 2015
Affordable Homes, Closer Families, Stronger Ties
Monetary Authority of Singapore 4 September 2015
Recent Economic Developments in Singapore September 2015
National Environment Agency 7 September 2015
Singapore’s Sustainable Waste Management Strategy Mapped Out In A First-Of-Its-Kind Publication On Global Waste Management By United Nations Environment Programme
Singapore Civil Defence Force 31 July 2015
Public consultation of review of Quantitative Risk Assessment (QRA) Guidelines
21 September 2015
Technical Requirements for Storey Shelters 2015
Singapore Land Authority 29 July 2015
SLA partners Institutes of Higher Learning to advance GeoSpatial education
Urban Redevelopment Authority 24 July 2015
Release of 2nd Quarter 2015 real estate statistics
31 August 2015
Revision of Development Charge Rates
Revision of Development Charge Rates The Ministry of National Development (and in consultation with the Chief Valuer) has revised the development charge (DC) rates for the period 1st Sep 2015 to 29th February 2016. The DC rates remain unchanged for Use Group A (Commercial), Use Group B1 (Residential, landed), Use Group B2 [Residential (nonlanded)], Use Group C (Hotel / Hospital), Use Group E (Place of Worship / Civic and Community Institution), and Use Groups F, G and H. The DC rates for Use Group D (Industry) have been lowered on the average by 3%. The changes in the rates, largely ranging from 3% to 4%, are noted for 87 out of the 118 sectors. There is no change to the DC rates for the remaining 31 sectors. The largest correction, with a 4% decline, are noted for the following sectors : -
Sector 98 (Kaki Bukit / Bedok / Xili Avenue / Simei / Changi South area) Sector 100 (Tampines Road / Hougang / Punggol / Sengkang area) Sector 106 (Sengkang West / Seletar area) Sector 114 (Boon Lay / Jurong West / Pioneer / Tuas / Sungei Kadut / Choa Chu Kang / Lim Chu Kang area) And other 70 sectors namely : Sectors 1 to 18, 22 to 47, 50 to 53, 55, 57, 58, 60 to 69, 89 to 97.
Considering the present tepid market condition, it is expected the DC Rates to remain largely unchanged for majority of the sectors.
Updates on Public Housing Policies Following the National Day Rally Speech on 23 August 2015, there were several public housing measures announced by Prime Minister Lee Hsien Loong. These measures are tabled as below.
The income ceiling for couples buying new flats will go up from $10,000 to $12,000, while that for executive condominiums (ECs) will increase from $12,000 to $14,000.
The Special CPF Housing Grant (SHG) will be extended to more households and the grant amount will also be raised. Households with incomes of $8,500 (previously $6,500) and below will now be entitled to a maximum grant of $40,000 and this is up from $20,000.
A household with a median income will now receive $30,000 in grant instead of $10,000 when buying a flat.
The new Two-Room Flexi scheme merges and replaces the current studio apartment and two-room flat schemes, and the new scheme allows applicants aged 55 and above more choices in lease length and flat type when buying a retirement home.
The Government will also launch a new scheme called the Fresh Start Housing Scheme. This is aimed at helping secondtimer rental households to own a two-room flat.
As these families have benefitted from previous HDB subsidies, the Government would not offer them another grant. However, they will be offered two-room flats with shorter leases and stricter resale conditions, which are more affordable. The family will also be supported with counsellors to guide them to solve their problems "holistically".
Parents and married children who want to live near each other will get more help under the new Proximity Housing Grant. Children who buy a resale flat with or the flat is located near to the home of their parents, or those who buy one flat which is situated close to their married children, will get the grant. This Proximity Housing Grant applies to every Singaporean household, whether they are first-time homebuyers or not.
We see the higher income ceiling, Special CPF Housing Grant as measures to take care of our maturing population including the increased re-employment age. The new HDB policy measures are expected to attract more new flats applicants and this is seen as a stimulus for the public housing market which has also softened in tandem with the overall broader residential market. In the longer run and the potential upside for the housing sector is that this could lead to a new pool of HDB upgraders into the private market and thus an important source of new housing demand in the market. With the first-timer backlog of demand for new flats cleared, it is thus critical to build up this pool of new HDB flat owners, particularly those who have potential to upgrade into the private housing market.
FEEDBACK CHANNEL FOR ALL VGP MEMBERS If you have any issues with regards to your relevant practice standards and guidelines, the Institute would like to hear from you. Whenever necessary, the Institute can set up a meeting to discuss how we can help you with the matters. Your valuable feedback is important to us. For FEEDBACK, please contact [email protected]
or [email protected]
Call for Trainers and Lecturers The VGP is calling for trainers and lecturers for its CPD programmes. Members who are interested to know more about the CPD programmes and want to join as course trainers/lecturers, please do not hesitate to contact Li Kim at [email protected]
or Janet at [email protected]
Members who wish to write in must have the following qualifications and experience.
At least five years of working experience in the same field as the course or module; Qualifications in the same area of expertise or at least equivalent to the level of the course;
BSc in Real Estate or equivalent;
MSc in Real Estate if your basic degree is not in real estate
Candidates who do not possess any real estate or equivalent degree qualifications but have been in the real estate field for more than 5 years, you may also write in to us. However you may be assessed by a Board for competency in the Course training programmes.
SISV REALink POWERdesQ The SISV REALink Services portal is undergoing a major overhaul to give you a brand new look and features. Please look out for our much awaited transformation in 2016. We
ARE WORKING VERY HARD TO SERVE YOU
BETTER, BOLDER AND FASTER.
Teo Li Kim
Singapore Institute of Surveyors and Valuers 110 Middle Road #09-00 Chiat Hong Building Singapore 188968 Tel : +65 6222 3030 Fax : +65 62252453 Website : http//www.sisv.org The VGP Express is a quarterly publication of the Singapore Institute of Surveyors and Valuers. Distribution is restricted to members and those organizations and institutions of higher learning associated with the Institute.