Response to "Review bank valuation process for new launches" - The Straits Times, 3 April 2014
9 April 2014
Mr Patrick Tan Choon Hong attributed the rise in property prices largely to the practice of banks matching their valuations for new property launches with the asking prices of developers (“Review bank valuation process for new launches”; 3 April 2014).
Banks generally engage professional valuers to conduct valuations of properties. The valuers are required to abide by industry standards and guidelines for property valuation prescribed by the Singapore Institute of Surveyors and Valuers.
MAS agrees that it is important for banks to use valuations that are reflective of actual property values. We expect banks to adopt sound valuation processes. These include engaging independent valuers from companies that are not involved in the property transaction as sales agents or consultants, allocating valuation assignments randomly or on a rotational basis, obtaining multiple valuations for each property, and checking that the valuations are reasonable.
Executive Director (Strategic Planning & Communications)
Monetary Authority of Singapore