Save the Date!

The

VGP Express Singapore Institute of Surveyors and Valuers

Inaugural

SISV Valuation

Conference 2015

16th Oct 2015

I S S U E 2 - O C T O B E R 2 0 1 5

27th VGP Council 2015/2017

President Dr Lim Lan Yuan

1st Vice President Tan Choi Heng

2nd Vice President John Teo

Hon Secretary Goh Heng Hoon

Hon Treasurer Ian Loh

Asst Hon Secretary Richard Tay

Council Members

Ivy Tan George Low

Png Poh Soon Eric Chan

Tan Keng Chiam Joseph Yee

Valenie Chwee Soh Chor Yin

Ong Shujuan

SISV Workshop on

Green Buildings &

Sustainability

17th Nov 2015

33rd SISV

Annual

Dinner

29th Oct 2015

7th WAVO

Congress

(Beijing, China)

12th Nov 2015

Joint PVAI-SISV

Valuation Conference New Delhi - 16th to 18th August 2015

To continuously promote

mutual co-operation and

exchanges with fellow cross-

border practicing valuation

organizations, the VGP has

recently renewed its

Memorandum Of Co-

operation with the

Institution of Valuers (India) (IOV) during its recent trip to India

where its representatives comprising Dr Lim Lan Yuan (President,

VGP), Mr Tan Choi Heng (1st Vice President) and Ms Teo Li Kim

(Director, Project) attended the first joint Practising Valuers

Association India (PVAI) – SISV Valuation Conference 2015 in

New Delh from 16th-18th August 2015. The next joint PVAI-SISV

Valuation Conference 2016 will be hosted by the VGP in

Singapore. This is likely to be a date in early May 2016 and talks in

Business Valuation and Valuation of

Plant are some of the interesting sessions

for the Conference. If you are keen to

participate or deliver a talk for this joint

Cross-Border Valuation Conference,

please contact Li Kim at 6424 0288 or

email her at likim@sisv.org.sg.

2

ISSUE 2 OCTOBER 2015

Singapore Realtors Conference 2015 Organised by SISV supported by APFM and FIABCI Singapore

The SISV successfully hosted the Singapore Realtors Conference

2015 on Thursday 27th August 2015. The half day Conference was

attended by some 100 participants comprising many KEOs and

salespersons from various estate agents, property consultancy firms

as well as other attendees from relevant authorities mainly BCA and

MND. The theme of the Conference “The Practice of Estate Agency

– How to Stay Relevant in a Volatile Market” is most apt as the

real estate industry in a tight Singapore market is seen to be in a state of inflexion. The participants

learned at the Conference that the agency business is no longer facing increasing competition locally

but also other external competition from markets in the region because of technology and

connectivity. Despite these external threats, there are also opportunities awaiting them in new and

growing markets like China, India, Myanmar, etc, which are still largely untapped. The VGP would like to thank all speakers, panelists and members who have supported and attended the

Conference this year. We look forward to seeing you next year.

Inaugural SISV Valuation Conference 2015 Friday 16

th October 2015, York Hotel

SISV (VGP) : 4 CPD Credit Hours

The VGP will be hosting the inaugural SISV Valuation Conference on

16th October 2015 at York Hotel, Mount Elizabeth. The theme for the

Conference is “Real Estate and Business Valuations – Trends and

Challenges Ahead” with the purpose of discussing issues facing

professionals in the valuation practice.

For this whole day Conference, the speakers will share their expertise

and knowledge on methods of valuation for various types of properties including valuation of

plant & machinery, specialized properties, valuation of JTC industrial property, business valuation

and property tax matters. You will also get insights on future trends affecting the property market

and understand policies governing Compulsory Land Acquisition & Land Compensation from the

Singapore Land Authority. You will be able to clock SISV CPD points for this Conference and for

which you are allowed to carry the points over to the new calendar year 2016.

The latest updated SISV VALUATION

STANDARDS AND PRACTICE

GUIDELINES (2015) will be officially

launched at this inaugural Valuation

Conference. Every participant of the

Conference will receive a FREE copy of the

above book with terms and conditions applied.

3

ISSUE 2 OCTOBER 2015

VGP IN ACTION

The VGP was recently invited by the HDB to attend

its annual Professional Engagement and

Knowledge-sharing (PEAK) Forum on 10th

September 2015. This invitation is part of the

continuous engagement between the VGP and

statutory boards like the HDB. The forum was

attended by Mr Tan Choi Heng (1st Vice President,

VGP), Mr Richard Tay (Assistant Hon Sec, VGP) and

Ms Teo Li Kim (Director, Project). After the Forum,

the representatives from VGP attended the tour to

Rumah Tinggi Mount ECHO Park and Sky Terrace @

Dawson. The 1.3ha Mount Echo Park, located in

Alexandra Road, sits on former railway land of which

the stretch of track has since been reconverted into a

park serving residents in the locality while the

development SkyTerrace @ Dawson was designed

with three key concepts mainly “housing in a park,

connectivity to surroundings and multi-generational

living”.

The Valuation Committee will continue to work on

developing the professional practice in valuation by

engaging members in dialogue sessions,

presentations and workshops with fellow veteran

members in the Institute as well as with special

invitees from local private property-related

organizations and/or various relevant Government

Ministries or Statutory Boards and international

practicing institutes. These initiatives will form part

of the effort by VGP to raise the profile and

reputation of members in the Institute.

The Estate Agency Committee conducted a dialogue with our

Certified Real Estate Agent (CREA) members on 13th July 2015.

The dialogue discussed on how the CREA scheme can be revamped

to bring more relevance and benefits to our members. Areas

discussed include offering discounted rate for CPD courses,

subscriptions to SISVRealink and Nationproperty portal and to

hold more regular dialogues for industry updates.

4

ISSUE 2 OCTOBER 2015

FIABCI (International Real Estate Federation) FIABCI hosted the Asia Pacific Real Estate Congress (APREC) in

Honolulu, Hawaii from 10th to 12th September 2015. The organizing

committee had lined up an impressive number of speakers and

sponsors for the participants to experience a genuine “Aloha” spirit.

The Belgium Chapter will host FIABCI December Business Meetings in

Brussels from 2nd to 5th December 2015. The Meetings provide the

opportunity for all FIABCI World Councils and FIABCI Committees to

hold their formal meetings to advance their work on a global basis. In

addition, there will be working sessions as well as an abundance of

marketing and networking opportunities. Please email

janet@sisv.org.sg to register your interest to attend the Business Meetings.

WORLD ASSOCIATION OF VALUATION ORGANISATIONS The World Association of Valuation Organisations (WAVO) will be having

its 7th WAVO Valuation Congress on 12th November 2015 in Beijing, China.

For members who are keen to participate as delegates in this upcoming

Congress in China, please register your interest with janet@sisv.org.sg by

mid October 2015. Secretariats would be advising you on the logistics

flight charges, hotel, etc when you have registered your interest. At this Congress you will meet

other international speakers thus giving you a plethora of opportunities for business and

knowledge networking. This is an event which you should not missed as conducting business in the

real estate market today goes beyond the realm in Singapore. This WAVO Valuation Congress is a

dynamic platform for local valuers to share and interact with other regional valuers/practicing

professionals from the US, Australia, China, Hong Kong, and many others in the Asia Pacific region.

The Property and Facility Management Committee is planning a series of lectures about building

maintenance and strata management. These lectures will also be CPD activities for property

management members.

Proposed topics for these lectures include:

(a) a series of lectures on building maintenance and strata management

(b) a series of lectures on building defects

(c) a talk on risk management & insurance

(d) a talk on Trees in Private Property

(e) a talk on Green Buildings

Members who are practicing property management who are interested to deliver any of the above

lectures, please contact Janet at DID 64240282 or email janet@sisv.org.sg. We are also keen to hear

from you on your suggestion of other topics which you may be interested to attend for CPD.

HIGHLIGHTS OF KEY EVENTS AND ACTIVITIES

5

ISSUE 2 OCTOBER 2015

Young Members Committee

Organizing talks by real estate veterans or fellow

members of the Institute is an important agenda for the

Young Members Committee of the VGP so as to constantly

engage its young and student members. Recently the VGP

invited Ms Ng Hsueh Ling, the Chief Executive Officer and

Executive Director of Keppel REIT Management Limited

to the Institute which saw her delivering an inspiring talk

for these young professionals. There was a large and

enthusiastic young crowd who greeted Ms Ng at SISV on

24th July 2015 where she shared valuable insights on the topic “REITS Market” or Real Estate

Investments Trust Market. These participants were engrossed and captivated as she discussed

about the Singapore’s REIT Industry including Keppel REIT and also dwelt on the advantages and

disadvantages of REITS. Ms Ng encouraged these young members to look towards joining the

REITS industry. There was an engaging Q&A session following the talk and it ended with Dr Lim

Lan Yuan, President (VGP) presenting Ms Ng with a token of appreciation.

LOCAL NEWS / VGP INITIATIVES

SISV Annual Dinner

SISV will be celebrating its 33rd Annual Dinner 2015 on Thursday, 29th

October 2015 @ Grand Copthorne Waterfront Hotel. This annual get-together

event will be attended by members from the real estate and construction

fraternity. For this year, it is our nation’s SG50 Golden Jubilee Year and to

celebrate this very special occasion, the Annual Dinner Organising Committee

has lined up a series of exciting, fun and interactive events to keep members

entertained throughout the night. With its theme, Denim & Glitters, it will be a fantastic night filled

with fun, laughter & joy. The registration form is available via SISV website. Please register early and

we are looking forward to seeing you at the forthcoming Annual Dinner.

VGP Members Login

VGP members are reminded to log-in to the SISV website (www.sisv.org.sg) to update their personal

contacts. This is to ensure that you are being kept posted on any upcoming events, seminars,

activities that have been planned by the VGP or the Institute by email or other electronic means.

VGP will also be using the same portal to register and keep record of the individual

member’s CPD hours.

6

ISSUE 2 OCTOBER 2015

Automated Valuation Models :

Risks & Threats

The Institute had responded to an article “Online price checks by

homeowners” published in the Straits Times on 8th July 2015 on SRX’s

launch of their new online service.

In the article, it was mentioned that “… It is a more consistent process than

if the valuation process was done by humans… not all valuers would be

aware of location characteristics …”.

The Institute wishes to respond to two issues raised in the statement as reported.

Firstly, the issue of consistent process. The computers using statistical logarithms are good tools to process and

organise data and information efficiently to assist the valuers in their analysis and determination of the market

value of a property. The process of interpreting and rationalizing the market trends and value is something that

the computer will not be able to take the place of humans.

Secondly, on the note of valuers not being aware of location characteristics, the institute wishes to enlighten

everyone that our members are trained in the field of real estate laws, construction technologies, urban

planning, economics, real estate finance, etc at the tertiary institutions. Our members are regulated by the

Inland Revenue Authority of Singapore under the Appraiser Act with the Singapore Institute of Surveyors and

Valuers, a professional body, overseeing the professional standards of practice.

The Practice Standard requires valuers to carry out proper investigations on all matters physically and legally

pertaining to the property, which cannot be carried out by the computer, before the value of the property can

be determined.

Inspection of the property is necessary not only to appreciate the physical attributes and locational attributes

but also intrinsic attributes. Furthermore, there are other issues such as non-compliant use and structures that

compromise safety and regulations, defects in the property and all other material issues which affect the value

of the property that will not be “detected” by the computer and reflected in the values and prices. The

computer/computer program can only help to streamline information analysis in a mechanical way depending

on how the variables/adjustments are set therein. The final value estimate will still require the professional

judgment of the valuer to determine which factors are important and the amount that should be adjusted. It is

therefore incorrect to say that the computer process is a more consistent and presumably a more accurate

process than that of a human being or to state that valuers are not aware of location characteristics as

compared to computers. An important training of a professional valuer is to understand the intricacies of the

characteristics of the location that affect value. This is a fundamental skill of a valuer.

The Institute would therefore advise the general public and home owners of the risks of relying on price or

value generated by computer programmes to make their property purchase or investment decisions. Our

valuers members are also advised not to endorse such automated valuation models as valuations.

7

ISSUE 2 OCTOBER 2015

VGP CPD COURSES

Certificate in Marketing of Industrial Properties – Commencing January 2016 (Endorsed by CEA – CPD credits to be confirmed) This Certificate Course is to equip estate agents/salespersons on the fundamentals in marketing industrial properties in

Singapore. As JTC and HDB are the two largest developers and managers of industrial properties in Singapore, it is

necessary that estate agents/salespersons be informed of the policies and regulations of JTC and HDB with regard to the

use and occupation of industrial properties. In addition, estate agents/salespersons should be acquainted with the

relevant portions of the guides and regulations introduced by CEA and other relevant authorities that relate to the

marketing of industrial properties.

The process, techniques and the various types of marketing activities will be taught in this course to equip estate

agents/salespersons with the essential tools to successfully market industrial properties. These skills include both

selling and leasing industrial properties.

SISV - Workshop on Green Buildings and Sustainability 17th November 2015 (9.00am – 12.30pm) SISV (VGP) : 2 CPD Credit Hours

Since the Earth Summit held in Rio De Janerio in 1992, initiatives on green buildings and sustainability have taken great

leaps. A number of countries and cities have undertaken business studies to justify the expenditures of green initiatives

and introduced measures to certify green buildings. The initial efforts focus on costs of green buildings. Recent

research has shown that values of green buildings outweigh the expenditures incurred in

making buildings green. This Workshop will explore in greater details the policies and

initiatives of green buildings and the importance of understanding the value elements of

green buildings including the cost benefits of retrofitting existing buildings into green

buildings. Four sub-themes will be discussed in this Workshop namely: Green

Buildings Policies and Policies (by BCA); SISV Valuation Standards

and Reports on Green Buildings, Valuation of Green Buildings and

Case Studies on Retrofitting Existing Buildings into Green Buildings. So

join us for this planetary green session. Will keep you informed of venue/registration

fees in due course.

In Strategic Partnership with :

Guidelines For Continuing Professional Development (CPD)

Requirements

The SISV Bylaws on CPD provide that every VGP Fellow and Member must complete 60 hours CPD in every consecutive

period of 3 calendar years (January to December).

To qualify as CPD, the activities must be related to:

Some parts of the theory and practice of valuation and related disciplines such as estate management, estate agency and

general consultancy, or other technical topics related to a member’s current or potential occupation, and/or personal or

business skills designed to increase a member’s management or business efficiency. For details, please read :

http://www.sisv.org.sg/membership-cpd.

Recording and operational requirements

The VGP secretariat will provide the number of credit hours for every conference, workshop or seminar and course

either organised or endorsed by the VGP Council and Institute including the provision of a certificate of attendance

indicating the hours attended. The record of individual members’ CPD hours will also be kept by the secretariat.

For details on the list of CPD activities and further enquiries, please check SISV website at http://www.sisv.org.sg

8

ISSUE 2 OCTOBER 2015

KEY CIRCULARS / NEWS ISSUED BY AUTHORITIES

Building and Construction Authority

22 July 2015 Design of structural steel in buildings (including pre-fabricated & prefinished volumetric construction) – Guidelines

on provision for corrosion protection and periodic structural inspection

17 August 2015 Launch of BCA Universal Design (UD) Mark Version 2.0 (2015)

Council For Estate Agencies

20 July 2015 Update on HDB Industrial Properties Policies –

Revised Assignment Policy

Revised Subletting Policy

4 August 2015 Advertising Standard Authority of Singapore’s Enhanced Guidelines to Singapore Code of Advertising Practice

17 September 2015 Practice Circular On The Prevention of Money Laundering and Countering The Financing Of Terrorism

28 September 2015 Unauthorised Use Of Residential Properties For Housing Of Foreign Workers

Housing Development Board

24 July 2015 Release of 2nd Quarter 2015 Public Housing Data

Ministry Of National Development

19 August 2015 2-Room Flexi Scheme – Meeting Diverse Housing Needs

24 August 2015 Affordable Homes, Closer Families, Stronger Ties

Monetary Authority of Singapore

4 September 2015 Recent Economic Developments in Singapore September 2015

National Environment Agency

7 September 2015 Singapore’s Sustainable Waste Management Strategy Mapped Out In A First-Of-Its-Kind Publication On Global Waste

Management By United Nations Environment Programme

Singapore Civil Defence Force

31 July 2015 Public consultation of review of Quantitative Risk Assessment (QRA) Guidelines

21 September 2015 Technical Requirements for Storey Shelters 2015

Singapore Land Authority

29 July 2015 SLA partners Institutes of Higher Learning to advance GeoSpatial education

Urban Redevelopment Authority

24 July 2015 Release of 2nd Quarter 2015 real estate statistics

31 August 2015 Revision of Development Charge Rates

Revision of Development Charge Rates

The Ministry of National Development (and in consultation with the Chief Valuer) has revised the development charge (DC) rates for the

period 1st Sep 2015 to 29th February 2016.

The DC rates remain unchanged for Use Group A (Commercial), Use Group B1 (Residential, landed), Use Group B2 [Residential (non-

landed)], Use Group C (Hotel / Hospital), Use Group E (Place of Worship / Civic and Community Institution), and Use Groups F, G and H.

The DC rates for Use Group D (Industry) have been lowered on the average by 3%. The changes in the rates, largely ranging from 3% to

4%, are noted for 87 out of the 118 sectors. There is no change to the DC rates for the remaining 31 sectors. The largest correction, with

a 4% decline, are noted for the following sectors :

- Sector 98 (Kaki Bukit / Bedok / Xili Avenue / Simei / Changi South area)

- Sector 100 (Tampines Road / Hougang / Punggol / Sengkang area)

- Sector 106 (Sengkang West / Seletar area)

- Sector 114 (Boon Lay / Jurong West / Pioneer / Tuas / Sungei Kadut / Choa Chu Kang / Lim Chu Kang area)

- And other 70 sectors namely : Sectors 1 to 18, 22 to 47, 50 to 53, 55, 57, 58, 60 to 69, 89 to 97.

Considering the present tepid market condition, it is expected the DC Rates to remain largely unchanged for majority of the sectors.

9

ISSUE 2 OCTOBER 2015

Updates on Public Housing Policies

Following the National Day Rally Speech on 23 August 2015, there were several public housing measures announced by Prime

Minister Lee Hsien Loong. These measures are tabled as below.

The income ceiling for couples buying new flats will go up from $10,000 to $12,000, while that for executive

condominiums (ECs) will increase from $12,000 to $14,000.

The Special CPF Housing Grant (SHG) will be extended to more households and the grant amount will also be raised.

Households with incomes of $8,500 (previously $6,500) and below will now be entitled to a maximum grant of $40,000

and this is up from $20,000.

A household with a median income will now receive $30,000 in grant instead of $10,000 when buying a flat.

The new Two-Room Flexi scheme merges and replaces the current studio apartment and two-room flat schemes, and the

new scheme allows applicants aged 55 and above more choices in lease length and flat type when buying a retirement

home.

The Government will also launch a new scheme called the Fresh Start Housing Scheme. This is aimed at helping second-

timer rental households to own a two-room flat.

As these families have benefitted from previous HDB subsidies, the Government would not offer them another grant.

However, they will be offered two-room flats with shorter leases and stricter resale conditions, which are more affordable.

The family will also be supported with counsellors to guide them to solve their problems "holistically".

Parents and married children who want to live near each other will get more help under the new Proximity Housing

Grant. Children who buy a resale flat with or the flat is located near to the home of their parents, or those who buy one flat

which is situated close to their married children, will get the grant. This Proximity Housing Grant applies to every

Singaporean household, whether they are first-time homebuyers or not.

We see the higher income ceiling, Special CPF Housing Grant as measures to take care of our maturing

population including the increased re-employment age. The new HDB policy measures are expected to

attract more new flats applicants and this is seen as a stimulus for the public housing market which has also

softened in tandem with the overall broader residential market.

In the longer run and the potential upside for the housing sector is that this could lead to a new pool of HDB

upgraders into the private market and thus an important source of new housing demand in the market.

With the first-timer backlog of demand for new flats cleared, it is thus critical to build up this pool of new

HDB flat owners, particularly those who have potential to upgrade into the private housing market.

FEEDBACK CHANNEL FOR ALL VGP MEMBERS

If you have any issues with regards to your relevant practice standards and guidelines, the

Institute would like to hear from you. Whenever necessary, the Institute can set up a meeting to

discuss how we can help you with the matters. Your valuable feedback is important to us.

For FEEDBACK, please contact likim@sisv.org.sg or janet@sisv.org.sg

ISSUE 2 OCTOBER 2015

Call for Trainers and Lecturers

The VGP is calling for trainers and lecturers for its CPD programmes. Members who are interested to know more

about the CPD programmes and want to join as course trainers/lecturers, please do not hesitate to contact Li Kim

at likim@sisv.org.sg or Janet at janet@sisv.org.sg. Members who wish to write in must have the following

qualifications and experience.

At least five years of working experience in the same field as the course or module;

Qualifications in the same area of expertise or at least equivalent to the level of the course;

BSc in Real Estate or equivalent;

MSc in Real Estate if your basic degree is not in real estate

Candidates who do not possess any real estate or equivalent degree qualifications but have been in the real estate field for more

than 5 years, you may also write in to us. However you may be assessed by a Board for competency in the Course training

programmes.

The SISV REALink Services portal is undergoing a major overhaul to give you a brand new look and features. Please look out for our much awaited

transformation in 2016. We ARE WORKING VERY HARD TO SERVE YOU

BETTER, BOLDER AND FASTER.

SISV REALink POWERdesQ

Secretariat : Teo Li Kim Janet Han

Singapore Institute of Surveyors and Valuers

110 Middle Road #09-00 Chiat Hong Building Singapore 188968 Tel : +65 6222 3030 Fax : +65 62252453 Website : http//www.sisv.org

The VGP Express is a quarterly publication of the Singapore Institute of Surveyors and Valuers. Distribution is restricted to members and those organizations and institutions of higher learning associated with the Institute.