EXAMINATION OF COMPUTER ASSISTED MASS APPRAISAL IN SINGAPORE

Abstract

Computer Assisted Mass Appraisal (C.A.M.A.) can assists tax authorities in keeping assessments of properties up-to-date. Annual reassessment is now technically possible through the computer as it can handle complex mathematical equations and millions of pieces of information with speed. The effect of C.A.M.A. on tax authorities is potentially beneficial if the system is intelligently conceived and carefully developed. While C.A.M.A. tries to replace as much of the extent of subjectivity as possible, it is generally acknowledged that valuers' input is required in property valuations. There are various types of C.A.M.A. systems adopted around the world and the selection of an appropriate one for a tax authority depends mainly on the advantages of the system and its suitability for the valuation of properties in the country. In Singapore, the C.A.M.A. system adopted is the Relativity Factor (RF) model. This dissertation will examine the existing mass appraisal system in Singapore. The focus will be on the mass appraisal of offices, looking mainly at the opportunities for improving the present C.A.M.A. system to increase the effectiveness and efficiency of property tax valuation in Singapore. Using an office building which has been demarcated as a submarket group by the Property Valuation and Assessment Division as a case study, this dissertation will illustrate how the suggested improvements can be incorporated in the suggested Modified Relativity Factor model.