Need help to price your property? Get 20 years of transaction data. Refer to our property valuation reports at the bottom of this page or reach out to us if you do not find your property below. Our customers get full access to updated information with unit by unit transaction detail. Drop us an email at email@example.com or leave your number and email in our live chat.
What is a Property Valuation?
Property valuation seeks to establish the Market Value of a property. Market Value is typically defined as "the price at which the property can be expected to be transacted between a willing buyer and a willing seller, with both parties having reasonable knowledge of all relevant facts regarding the property and market conditions". This is typically provided in a written report by a Property Valuer.
Who can be a Property Valuer?
In Singapore, property valuations have to be carried out by a Licensed Appraiser. To become licensed, applicants need to hold an approved degree, relevant experience and be a member of the Singapore Institute of Surveyors and Valuers (SISV). Licences are issued by IRAS in accordance with the Appraisers Act 1906.
What is the use of a property valuation and why is it important?
Property valuation is a useful data point to decide what price you would like to sell or buy a property at.
Property valuation also becomes critical when your buyer requires a mortgage from the banks to help fund the purchase (unless your buyer comes with a bag full of cash, in which case you need to be worried about other things...). In Singapore, banks are regulated by MAS, which has placed a cap on Loan-To-Value of 75% for buyers with no outstanding housing loans. The bank's "value" is the lower of the purchase price or the property valuation conducted by the property valuer.
In a scenario where a property is sold at S$2m but only valued at S$1m, the bank can only lend S$750,000 instead of S$1.5m based on MAS regulation. This forces the buyer to fork out the remaining S$1.25m in cash, instead of S$500,000. To avoid such a situation, it is advisable to approach friendly real estate professionals like us =) to get you an indicative property valuation from the various banks that you are considering taking a mortgage loan from.
What does a property valuation consider?
Residential property valuation typically uses the Comparable Method of Valuation. For commercial/industrial or larger properties, valuers may consider other methods like income capitalisation or Discounted Cash Flows (DCF). For residential properties, some of the key factors that would be considered include the location, land area, freehold or leasehold land tenure, built up area, height of the unit and building, number of rooms, age of the property, condition of the external building, condition of the interior, etc. This would then be compared against similar properties that were recently transacted in nearby locations.
How much does a property valuation cost?
Property valuation reports by licensed appraisers can cost around S$~500, with some variation depending on size/quantum/banks. Some banks may absorb this fee as part of their mortgage package. This report is typically commissioned only when a transaction has been signed, and a mortgage has been requested from the banks. However, if you would like to purchase it ahead of the transaction, please check with the property valuer which banks they are on the panel of, which allows for their report to be used when obtaining the mortgage.
Without paying S$500 upfront, how do I decide what price to sell or buy a property at?
There are various options, including approaching banks for indicative property valuation, utilizing automated valuation models from websites like SRX or The Edge, or simply looking at comparable transactions yourself to determine the right price. Note that these are reference data points to help you form a reference price, but the ultimate transaction price may still differ, depending on urgency of the seller, potential profit/loss incurred by the seller, or interest of the buyer, or unique qualities like designer furnishings or a million dollar view which may not be possible for any indicative or automated valuation to consider.
Where do I get comparable transactions?
Auctionjia has access to these transaction data, which helps our customers to get a better sense of the market, and form a view on their selling/buying price. In the reports below, we have provided up to 20 years of transaction data. This allows you to form a comprehensive view of historical price ranges, and understand how prices have moved in earlier years. Do reach out to us if you do not find your property below. Note that our customers get full access to updated information with unit by unit transaction detail. Drop us an email at firstname.lastname@example.org or leave your number and email in our live chat.
Note that these residential transactions are based on caveats lodged. While a vast majority of buyers lodge caveats to protect their legal interests, certain transactions do not (to avoid public scrutiny, SPV transactions, etc).