VALUATION OF HOSPITALS IN SINGAPORE

Abstract

Singapore aims to develop into a medical hub in the region. One of the strategies is to increase in the investment of hospitals and clinics. This may indicate that there may be an increase in the supply of hospitals and medical centers in the near future arising from increase in investment. Valuation of hospitals will have an increased emphasis as property values will be published in financial reports for investment purposes. Therefore this has called for a greater understanding in the valuation of hospitals. This study aims to provide an in-depth study for valuations of hospitals in Singapore. Valuation of special properties poses challenges to the valuer. Hospital in one category of special properties, and the problems that come with the unique characteristics together with the limitations with the valuation approach are being discussed so that one can provide a better market valuation of a hospital after such factors are accounted for. Professional views from local valuation firms on valuation of hospital highlighted that it is likely to be an increase in the supply of hospitals in Singapore as more investments are pooled into this sector. It is generally by valuers that hospital often lacks of market comparable data and therefore causing the valuation to be a difficult task. Other valuation approaches have obvious limitations when it comes to valuation of a hospital. Therefore the valuer is often left with no choice but to adopt that approach which exhibits the lowest level of uncertainty as its primary approach to such a valuation depending on the type and reliability of data that he has.