VALUATION OF SPECIAL-PURPOSE PROPERTIES IN SINGAPORE

Abstract

The valuation of special-purpose properties has always been regarded as a challenge to the professional skill of a valuer. This is due to the fact that the valuation of such properties often presents numerous, and perhaps latent, difficulties which defy market analysis and value justification. The lack of evidence as market guidance to value estimation often results in the traditional approaches being unreliable. In fact, the inherent limitations of the various approaches are often more daringly exposed when adopted in valuing special-purpose properties. The valuer under such circumstances, therefore, often lacks a concrete basis to support his value judgement. Instead, the ingenuity of the valuer to be able to adopt a "commonsense" approach to the valuation of special-purpose properties is often necessary, and has generally been approved and encouraged by the courts. This study aims at examining the difficulties that confront a valuer in valuing special-purpose properties, particularly in the local context. In this aspect, a personal survey was conducted. Several interesting findings were made. Criticisms, comments and recommendations were presented with regard to the findings from the survey. This study concludes that though the valuation of special-purpose properties has been and will always put to test the professional skills of a valuer, the valuation of such properties here presents problems than in countries such as the United Kingdom and the United States. This is due to the presence of certain factors that are peculiar to the local context.