Valuation plays a vital & independent role in Hong Kong property market
Hong Kong, June 15 /PRNewswire-Asia/ -- Advice on valuing property in a rapidly changing market was published recently by RICS (The Royal Institution of Chartered Surveyors). It recognises that in the current economic climate there may be a need for valuers to provide advice on the outlook of a properties value, as well as establishing the current market value.
The valuation information alert sets out clear guidance on how to carry out such valuations. It is aimed at the commercial property market and will supplement and clarify the existing standards set out in the Red Book.
It provides guidance to both valuers and lenders on the advice that can be provided when conducting loan security valuation reviews in circumstances when values are changing rapidly. In such situations a valuation can become out of date very rapidly and as a result a client, particularly a lender conducting a loan security review, may seek additional advice from the valuer. This is likely to focus not only upon the current market value, but also what it might be in the near future.
Mr. Albert So, Chairman of RICS Hong Kong, commented, "RICS valuation set out clear guidance on how to carry out a valuation in a professional manner. In view of the increasingly complex world of international economy, it is important to educate the public of the value of a standardized valuation method that plays an essential role to ensure a consistent benchmark of practice standards across the market. RICS being the world's leading mark of valuation expertise is taking on this important role in providing a set of valuation guidelines for the industry. In addition, we have organized a valuation conference last Friday on 'the financial crisis: how valuers can assist the recovery', aiming to uplift the professional standards through the promotion of adopting the internationally recognised valuation methods. in all property markets."
"This information alert is a timely reminder of the need to provide open and transparent valuations in the current market. The valuer is not only required to provide a figure, but also clearly set out his reasoning and assumptions. This reflects most lenders requirements and should be something that all valuers can provide," said Mr. David Faulkner, Chair of the RICS HK's Valuation Facility Committee.
"Valuers are well placed to have a unique insight into the future prospects for any property asset," commented David Rusholme, RICS Valuation Director. "The new guidance provides a framework for an active dialogue between valuer and lender client."
"The banking world will welcome clarification on the forward looking issues valuers need to address when reviewing loan valuations. The proactive valuer should have no difficulty in providing this form of advice," said Andrew Renshaw, Chair of the RICS' Secured Lending Valuation Group.
Notes for editors:
Valuation Information Alerts are issued periodically by the RICS Valuation Group Board. They are designed to address important areas of valuation practice and respond to issues where clarification or expansion of best practice is required. They do not form part of the RICS Valuation Standards. After publication of a Valuation Information Alert, any changes to guidance which are necessary will be published in the subsequent annual Red Book edition.
A copy of the full valuation information alert Guidance to Lenders and Valuers when conducting Loan Security Reviews can be found at
http://www.rics.org/RICSWEB/getpage.aspx?p=u0S6GqvejUe3Vtz2TozFfQ .
About RICS & RICS Asia
RICS (Royal Institution of Chartered Surveyors) is an independent professional body originally established in the UK by Royal Charter. Since 1868, RICS has been committed to setting and upholding the highest standards of excellence and integrity -- providing impartial, authoritative advice on key issues affecting businesses and society.
RICS is the worlds' leading qualification when it comes to professional standards in land, property and construction. With over 140,000 members globally, RICS represents, regulates and promotes the work of property professionals throughout 146 countries.
The RICS Asia supports a network of over 9,000 individual professionals across the Asia region with an objective to help develop the property and construction markets in these countries, by introducing professional standards, best practice and international experience. It promotes RICS and its members as the natural advisors on all property matters. It also ensures that services and career development opportunities are provided to members.
The RICS Asia region covers national associations and local groups locating in Brunei, Malaysia, Singapore, Thailand, The People's Republic of China and the SAR Hong Kong. It also has members working across the region such as Bangladesh, Bhutan, Burma/Myanmar, Cambodia, Indonesia, Japan, Kiribati, Laos PDR, Macao, Mongolia, Nepal, North Korea, South Korea, Taiwan, The Maldives, The Philippines, Timor East and Vietnam. For further details, please visit our new website: http://www.ricsasia.org
Media enquiry, please contact:
RICS Asia Pacific Public Relations Representative
Ms Katherine Chow / Ms Kate Kwan
Tel: +852-2372-0090
Fax: +852-2372-0490
Mobile: +852-9256-3223 / +852-9077-1337
Email: kat@creativegp.com / kate@creativegp.com
