VALUATION OF RESIDENTIAL PROPERTY IN SINGAPORE: ANALYSIS OF PARTICIPANTS' BEHAVIOUR

Abstract

The sales comparison method of valuation is regarded as a reliable and accurate technique for valuing residential properties in Singapore. The valuation method is widely used and is accepted by the local court. Valuers are needed to estimate property values in markets characterized by high search costs, scarce information and heterogeneous, relatively expensive products. These characteristics are descriptive of most real estate markets. This study aims to find out the factors which the valuers think affect private landed residential properties in Singapore and in using these as a benchmark, test the hypothesis that buyers know what affect the values of their landed properties. Through the parametric and nonparametric techniques of testing the data set, the hypothesis is rejected, evidenced by the differences in ranking of the variables between the valuers and buyers' cohorts.