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VGP Express SingaporeInstituteofSurveyorsandValuers

I S S U E 4 - A P R I L 2 0 1 6

27th VGP Council 2015/2017

President DrLimLanYuan

1stVicePresident TanChoiHeng

2ndVicePresident JohnTeo

HonSecretary GohHengHoon

HonTreasurer IanLoh

AsstHonSecretary RichardTay

CouncilMembers

IvyTan GeorgeLow

PngPohSoon EricChan

TanKengChiam JosephYee

ValenieChwee SohChorYin

OngShujuan

TheVGPwillbehosting itsAnnualGeneralMeetingandVGPAGMConferenceon30April2016atYorkHotel,MountElizabeth.TheannualVGPconferencehopes to address topics that are prevalent in the industry but often lackingmarketpractitioners’viewpoints.For this conference, speakers will share their knowledge on propertymanagement,estateagencyandvaluationissues.Our speaker on Valuation will discuss on the challenges in reining theunprofessionalconductinvaluationpractice.OnMarketing&Agencypractice,ourspeakerwillsharewithyouthematterson ASEAN Economic Community : challenges and opportunities for estateagents.For Property Management, the speaker will discuss matters regardingCommonPropertyinstrata-titleddevelopments-LeeLayTingvMCSTPlanNo.3414 and the session considers the understanding and interpretation of theterm“commonproperty”instratadevelopmentinrecentcaselaw.

AnnualGeneralMeeting&VGPAGMConference30April2016SISV(VGP):2+2CPDCreditHours

Joint SISV-PVAI Valuation Conference 12 & 13 May 2016

SISV AGM & Annual VGP Conference 30 April 2016

Singapore Realtors Conference 3 August 2016

SISV Real Estate Masterclass 11 to 13 July 2016

ASEAN Valuation Association Congress 4 to 7 May 2016

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ValuationPracticeInChallengeIn this section, two aspects of valuation practice are discussed. The first deals with valuationsgeneratedusingcomputertechnology,andthesecondonvaluationstandards.TechnologyWith the advancement in technology, computers have been applied in various industries that cangenerate efficient and quick ways of doing business and transactions. In real estate, computerapplications have been used in a number of ways to facilitate real estate marketing, propertymanagementand real estateanalysis. Oneof the recentapplicationsclaims tobeable toprovidecomputer-generated valuations reducing the element of human judgement. These computercapabilityandtechnologywerehailedasthelatestinnovationthatcanfacilitatetheconductof100inspectionsbyafewvaluers.Thesemarketing“gimmicks”areknowntoattractattentionanddrawunsuspectingcrowds.TheInstitutewould like to remindmembersthatcomputer isonlya tool that canhelpto increaseproductivityintheworkdone.Itcannotreplacetheworkofavaluer,whoisrequiredtoverifythedata and evidence that have been collected, to analyse the data and finallymake the appropriateadjustmentsindeterminingthevalueoftheproperty.Inthisrespect,theInstitutewouldbeissuingapress statement to inform thegeneralpublicof using computer-generatedvaluationsat theirownriskfordecision-makingandpropertytransactions.Membervaluersareremindednottobedictatedby such technology but rather they have tomake their own independent judgment based on theverifiedevidenceavailable.ValuationStandardsValuation standards are essential to reduce inconsistency in valuation work and to enhanceprofessionalism. InOctober2015, theVGPCouncilhas introducedanupdatedversionof theSISVValuation Standards and Practice Guidelines (2015 edition)which is noted to cover not only realestate valuation but also that of Business Valuation aswell as Plant andMachinery Valuation. Asuccessfulworkshopon theSISVValuationStandardsandPracticeGuidelineswasconductedon9March2016to informmembersoftherequirements. Forpracticingvaluerswhowerenotable toattendtherecentworkshop,theVGPwouldbeplanningmoreofsuchworkshopsinthefuture.AllmembersofSISVarerequiredtocomplywiththeseGuidelinesundertheInstitute’sby-laws.ThelaunchoftheseGuidelinesistimelytoremindvaluersoftheneedtoensurethattheirvaluationworkisincompliancewiththeGuidelines,andthattheyconductthemselvesinthecourseofthevaluationwork inamannerconsistentwiththerequirementsof theGuidelines. It isessential thatmembervaluerscontinuetoupholdtheirprofessionalstandardsandqualityintheperformanceoftheirwork.RecentlytheInstitutehasissuedafewcircularsongoodpractices.Infuture,moresuchcircularswillbeissuedtoremindourmembersoftheneedforproperconductandcompetence.

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ReviewtoVGPMembershipEntryRoadmapForRealEstateUniversityDegree(Non-Accredited)HoldersThe current Final Examination for Professional Membership (FEPM) scheme has been in place forseveral years. It was designed to allow Real Estate graduates who had read their first degree inuniversitieswhich arenot accredited by our Institute to becomeour SISVmembers. In the existingstructure, candidates are tested on 3 Core Practice Papers: Valuation, Property Management, andMarketing&Agency.It isnoted thatmanysuchapplicantsarenotedtowork inoneof the3 identifiedareas. Therefore,whiletheyarecompetentintheircorediscipline,theyarenotabletodowellintheothertwopapersinwhichtheyarenotfamiliarwith.

The Council has approved a new roadmap to focus on each of the 3 discipline areas. While beingtestedontheirpracticeknowledgeintheircorediscipline,theapplicantswouldalsobetestedontwootherpapersrelating to their corediscipline,namely,RealEstateLawandPractice&Ethics. ThesepapersaredesignedtoensurethattheseforeigngraduatesarefamiliarwithSingapore’slocallawsandpracticeculture.ThenewschemeshallbeimplementedforthenextintakeinthiscomingJune2016.

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JointSISV-PVAIValuationConference2016Conference:CROSS-BORDERVALUATIONS–CHALLENGESANDTRENDSInConjunctionwithCertificateCourseinSingaporeRealEstateTrusts12&13May2016,FortCanningLodgeSISV(VGP)CPDCreditHoursConference,Course&TechnicalTour 10hoursConference&TechnicalTour 9hoursCourse&TechnicalTour 6hoursThe realm of valuation practice today is no longer confined within the local market. With fastglobalizations and 3D touch sensor technology connectivity, the business of valuation can easilytransient on a global platform andwhere cross-border valuation is todaywithout trans-boundarylimitation.ThePractisingValuersAssociationIndia(PVAI)andVGPwillbehostingajointValuationConferenceon12May2016.Theseconddayoftheconferencewillbededicatedtoahalf-dayREITsCertificateCoursefollowedbyaspecialtechnicaltourtoone-north–Biopolis,Fusionopolis&Mediapolis,whichshowcasesSingapore’slatestprogressintoaknowledgeandinnovation-intensiveeconomy.SpeakersfortheConferencewillbesharingtheirexpertiseontopicsnamelythatoftheChallengesofconductingREITvaluationinIndiaandSingapore,ValuationofIntangibleAssets,ValuationofPlant&MachineryandPropertyMarketOverviewinSingaporeandIndia.Please do not miss this opportunity for an interactive and interesting networking session withvaluersandother realestateprofessionals fromIndiaparticularly thosewhoareentering into theIndiaMarketandwouldneedtofindoutwhataretheopportunitiesinIndiafromtheseexperts.

SingaporeRealtorsConference20163 August 2016 SISV(VGP):6CPDCreditHours The VGP is organising its 3rd successive annualSingapore Realtors Conference. For the past years, weare honoured to have the DED of Council for EstateAgencies as our Guest-of-Honour to grace the events.Thisyear,theinstituteisplanningtoholdtheeventasafull-dayconference.Themed “What’s Next For Estate Agents andSalespersons inSingapore”, the conferencewill coverawide perspective of the real estate issues, from localMarket Updates, practice challenges, such as “Handlingof Exclusive Agreements”, to regional development –“ASEANEconomicCommunity”.

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FIABCI (International Real Estate Federation) SISV(VGP):10CPDCreditHours

The Panama Chapter will host the 67th FIABCI World Real EstateCongressfrom21to26May2016.TheCongressattractsgloballeaderswho network, build business, share experience and advance theprofession.TheProgramHighlightsforthisyearinclude:

• InternationalNetworkingandMarketingSessions• FIABCIGeneralAssembly,WorldCouncilandCommitteeMeetings• FIABCIWorldPrixd’ExcellenceAwardsandGalaDinner• RecreationandStudyTours

Following the World Congress, FIABCI will also organise a TradeMissiontoCubafrom27to30May2016.Memberswho are interested to attend the congress can contact oursecretariat,MsJanetHanatjanet@sisv.org.sg.

HIGHLIGHTSOFKEYEVENTSANDACTIVITIES

ASEAN Valuers Association (AVA) SISV(VGP):10CPDCreditHoursThe19thAVACongresswillbeheld from4to7May2016 inPhnomPenh, Cambodia. The theme of the Congress is “ONE ASEAN ONEVALUATIONSTANDARD”.DevelopmentinAsiahasalotofgrowthpotentialandtheAVAwillbethe front-runner to guide this in awin-win situation for all partiesinvolved.For thisCongress, apart from theCountryReportsbyeachMemberCountry, invited distinguished speakers will share on variousvaluationtopics,includingHotelValuation,BusinessValuation,Plant&MachineryValuationandRealEstateInvestmentTrust.The congresswill also include a technical tour to theTop 5 CondoProjectsandtheTop5HousingDevelopmentProjectsinCambodia.

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WORLD ASSOCIATION OF VALUATION ORGANISATIONS The Australian Property Institute is planning to host the next WAVOmeeting in Sydney in June 2016. WAVO expects a strong participatinginterestfromfellowWAVOmembersfromtheregion.

The Korea Appraisal Board will be hosting the 8th WAVO Congress in November 2016. Fellowpracticingvaluersandrealestateprofessionals,whoarekeentoattendthisCongresslaterthisyear,pleasedonothesitatetowritetolikim@sisv.org.sgorjanet@sisv.org.sg.

The 28th Pan Pacific Congress for Real Estate Appraisers, Valuers and Counselors SISV(VGP):10CPDCreditHoursTheJapanAssociationofRealEstateAppraisers(JAREA)ishostingthe28thPPCinKyotofrom26to29September2016andvenueoftheeventisattheKyotoInternationalConferenceCenter.Thisyearthe theme of the Congress is “Toward Expanding the Role and Expertise of the ValuationProfessioninanEver-ChangingGlobalEconomy”.Weanticipatetheeventtobewellattendedbymanyrealestateprofessionalsfromtheregionanditwouldnotonlybeaknowledgeenergizingeventbutalsoaninteractive,powersocialandbusinessnetworkingeventthatisnottobemissed.VGP members who are interested to attend, please register your interest with secretariats atlikim@sisv.org.sgorjanet@sisv.org.sg.

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LOCALNEWS/VGPINITIATIVESRealEstateValuationCourseforStatutoryBoardsDay1on19May2016(Thur),Day2on2June2016(Thur)&Day3on9June2016(Thur)SISV(VGP):10CPDCreditHoursObjectiveandcontentThis3-dayRealEstateValuationCourseistailoredtotheneedsofstaffofstatutoryboards&governmentorganizationswho areworking in the valuation division and/or in relation to valuationwork to updatethemontheindustrypracticesandthecommonmethodologiesusedinrealestatevaluation.Thecourseistoprovideanoverviewofthefundamentalsinvaluationandmarketvalueconcept (Topic1),thefactorsthat affect values and the valuation process (Topic 2), valuation methodology (Topic 3) and variousvaluationapproaches(Topic4),valuationpractice&reportingstandards(Topic5)andCasestudies(Topic6)willbediscussed.Attendeeswillhaveopportunitiestoengageinaninteractivediscussionwiththelectureronthemethodofvaluationused inpractice.Thecoursewill alsofocuson thevariousvaluationmethodologiesappliedfordifferentpurposesinrelationtovaluationworkundertakenbypracticingvaluersinstatutoryboards.CasestudiesandexampleswillbeusedinthisCoursetoillustratethemethodologies.Thevaluationstandardsrequiredandindustrypracticeswillbehighlighted.Opportunitieswillbegiventoparticipantstoundertakeafewvaluationassignments.

SISVRealEstateMasterclass201611to13July2016SISV(VGP):10CPDCreditHoursTheworldisgettingsmaller,aseconomicbordersshrinkintandemwiththegrowthof informationtechnology and instantaneous communication. In the ambit of the real estate arena, new marketsbring forth the heady and dramatic prospects of newopportunities to participate in forging a realestatelandscapethatisin-syncwiththeburgeoninggrowthofexistinganddevelopingbusinessandhumanactivities,regardlessoftraditionalgeographies.

Navigating the new frontiers of real estate development can bechallenging in both mature markets such as the highly urbanisedSingapore,aswellasdevelopingcitiesintheregion.TheInstituteisprivilegedtobringsomeofthemostincisivemindsandexperienced practitioners, includingMsPaulineGoh(CEO,CBRESEA)andMsOngChoonFah (CEO,DTZSEA), together in oneMasterClass.Wehopethatthepresentationsofvariousmulti-facetedaspectsofrealestate both in Singapore and in the newly emerging markets, seenthroughthe lensofourexpertspeakers,willprovidetheparticipantswith deeper insight into the industry’s ever changing and evolvingcharateristics.ThisexclusivelimitedSISVRealEstateMasterclasscoversnotjustrealestatepractices,butalsodecodesthecomplexitiesofpropertytaxandlaw, associated with doing business in the fast moving real estateindustry.

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WorkshoponTreesMaintenancebyNParks–AnSISVinitiativeincollaborationwithNationalParksBoard13&14April2016SISV (VGP) : 10 CPD Credit Hours TheVGPisintalkswiththeNationalParksBoardtobringtoyouaseriesoffull-dayworkshoponTreesMaintenanceandallthatapropertymanagerhastoknowaboutBasicLandscapeMaintenance;BasicTreesandShrubsMaintenance.Theworkshop is expected to includea technicalorientationwhere theexperts fromNParkswill sharewithyou thefinergreenthumbsintreesandshrubspruning.

VGPCPDCOURSESCertificateinMarketingofIndustrialProperties(CEASN:C2L3S0495)EndorsedbyCouncilforEstateAgencies–Registrationtocommencesoon6CEACoreCPDcreditsawardedunderCoreCategory2/Level3approvedbyCEAforthemandatoryCPDSchemeSISV (VGP) : 8 CPD Credit Hours ThisCertificateCourseistoequipestateagents/salespersonsonthefundamentalsinmarketingindustrialpropertiesinSingapore. As JTC andHDB are the two largest developers andmanagers of industrial properties in Singapore, it isnecessarythatestateagents/salespersonsbeinformedofthepoliciesandregulationsofJTCandHDBwithregardtotheuse and occupation of industrial properties. In addition, estate agents/salespersons should be acquainted with therelevant portions of the guides and regulations introduced by CEA and other relevant authorities that relate to themarketingofindustrialproperties.

Topics CEACoreCPDCreditsHours

SISV(VGP)CPDCreditsHours

DateDutiesofLandlord’sAgentwithCaseStudiesonPrivateResidentialandCommercialProperties(C1L2S0365)

2 3 6April2016(PM)18May2016(AM)

UnderstandingSuccession,Trusts,Ownership,TenuresInRealEstateTransactions(CEASN:C2L1S0180)

2 3 11April2016(AM)

CEA’sPracticeGuidelinesOnOptionToPurchaseAndSales&PurchaseAgreements(CEASN:C3L2S0364)

2 3 20April2016(PM)25May2016(AM)

ProfessionalResearchTechniquesToEnhanceMarketing(CEASN:C2L2S0502)

2 3 26April2016(PM)

LearnToDraftAProperLetterOfOfferAndLetterOfIntentForLease(CEASN:C2L1S0363)

2 3 27April2016(PM)

IntroductionToREITsAndtheRelevantRegulationsGoverningTheminSingapore

3 29April2016(Evening)

MasterPlan2014(CEASN:C2L2S0127)

2 3 4May2016(PM)

CEA’sPracticeGuidesOnConductBetweenSalespersons(CEASN:C3L1S0312)

2 3 11May2016(AM)

StatisticalInterpretationOfPrivateResidentialMarketForBusinessImprovement(CEASN:C2L2S0501)

2 3 17May2016(PM)

BuildingDefects 3 25May2016(PM)

IncreaseYourHDBTransactionsthroughHousingTrendAnalysis(CEASN:C2L2S0503)

2 3 31May2016(PM)

RectificationOfBuildingDefects

3 22June2016(PM)

ChoiceOfBuildingMaterials 3 20July2016(PM)

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KEYCIRCULARS/NEWSISSUEDBYAUTHORITIESBuildingandConstructionAuthority

1February2016 Permittocarryoutstructuralworks–newconditiontoensurethestructuralstabilityofexistingpartywalland

boundarywall

18February2016 Reminder:Morevigilancerequiredinliftmaintenanceandinspection

CouncilForEstateAgencies

15January2016 PracticeCircularonCollectiveSaleOfProperty

20January2016 Bankrupt’sApplicationtoPurchaseHDBFlat–IntroductionofPriceCriterioninadditiontoFlatType

15February2016 ForeignworkersrentingHDBflatsmustberegisteredassubtenantsbeforetheiraddressescanbeupdatedinthe

onlineforeignworkeraddressservice

HotelLicensingBoard

17March2016 LaunchofLicensinge-ServicesPortal–LicenceOne(Beta)

JTCCorporation

10March2016 JTCUnveilsFurnitureHubAtSungeiKadut

MinistryOfNationalDevelopment

15February2016 FutureCitySub-CommitteeExploresPlansforSingapore’sUrbanTransformation

29February2016 RevisionofDevelopmentChargeRates

19March2016 SingaporeandChinaJointlyLaunchInauguralPublicationOnUrbanGovernance

MonetaryAuthorityofSingapore

4March2016 RecentEconomicDevelopmentsinSingaporeMarch2016

NationalEnvironmentAgency

22March2016 MSSReleasesInauguralAnnualClimateAssessmentReportForSingaporeAndLaunchesMobileWeatherApp

“Weather@SG”

23March2016 $1.3MillionCommittedTo41ProjectsToEncourageWiderAdoptionOfQuieterConstructionSolutions

SingaporeCivilDefenceForce

3March2016 ManagingFireSafetyInTheUseOfHoardingsAndSafetyNetsInExistingBuildingsUndergoingAddition&

AlterationWork

UrbanRedevelopmentAuthority

01March2016 RevisedCriteriaforIssueofHousingDeveloper’sSaleLicence

11March2016 CentralAreaUndergroundPedestrianNetwork–RevisionstotheCashGrantIncentiveScheme

24March2016 RevisionstoPlanning(UseClasses)Rules

24March2016 UrbanDesignGuidelinesforDevelopmentswithinMuseumPlanningArea

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Secretariat: TeoLiKim JanetHan NeoPingPing

SingaporeInstituteofSurveyorsandValuers

110MiddleRoad#09-00ChiatHongBuildingSingapore188968Tel:+6562223030Fax:+6562252453Website:www.sisv.org.sg

The VGP Express is a quarterly publication of the Singapore Institute of Surveyors and Valuers. Distribution is restricted tomembersandthoseorganizationsandinstitutionsofhigherlearningassociatedwiththeInstitute.

HDB&CEADialogueSessionsAs part of the continuing effort to constantly engagewith relevant authorities in relationwithrealestatematters,theVGPCouncilwillbeengagingwiththeseniorofficialsfromHDB(11April2016)andCEA(18April2016) inseparateclosed-doordialoguesessions.ThesesessionsaretobeattendedbyCouncilMembersonly.Members with concerns on Valuation, Property Management and Marketing & AgencyPractice issues relating to these two statutory boards, please send your feedback tolikim@sisv.org.sg before the above respective dates. The Council would value anyconstructive suggestions and comments to improve our practice and engagement withfellowmembers.