THE VALUATION OF CAR PARKS IN SINGAPORE

Abstract

Car parks are special purpose properties whereby the main function is the accommodation of motor vehicles. The business of operating car parks in Singapore is highly competitive. As such, car park owners and operators are unwilling to release financial information for fear of the stiff competition. There is also limited local literature on the valuation of car parks. As such, there are many difficulties which valuers face in carrying out valuations of car park properties. This dissertation aims to understand the nature of car park operations and the various methods available for valuing such properties in Singapore. At present, the Replacement Cost Approach is widely used in the valuation of special purpose properties . However, findings from this study show that the Investment Approach is more appropriate in the valuation of car parks. Two case studies were done to show the application of this approach on the valuation of car park properties in Singapore.