In valuation practice, a house is commonly referred to as a landed property. This category includes terraced houses, semi-detached houses, detached houses of both developer and individual designs, cluster houses, townhouses, villas, and similar developments. In a broader context, the definition may also extend to stratified residential properties, such as low-cost flats or apartments, walk-up flats or apartments, affordable apartments, condominiums, and even serviced apartments which are developed on commercial land.
Valuation is a professional process of ascertaining the Market Value, Forced Sale Value, or Fire Insurance Value of a specific property as at a particular date of valuation. The valuation is carried out by a licensed valuation firm in Malaysia through a detailed analysis of the property’s physical characteristics, legal and planning status, prevailing market conditions, and relevant economic factors. All valuation reports are prepared in accordance with the Malaysian Valuation Standards (MVS) and must be signed by a Registered Valuer who is registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP).
Valuation reports are prepared for various purposes, including intended sale or purchase, Real Property Gains Tax (RPGT), inheritance matters, Grant of Probate and asset distribution, financial reporting and accounting, litigation, land acquisition, internal management, information purposes, and other related applications.
A valuation report prepared by a valuation firm in Malaysia must clearly and transparently communicate the valuer’s professional opinion. It should state the basis of valuation adopted, highlight any assumptions or limiting conditions, and disclose the information relied upon in forming the opinion of value. A typical valuation report will include, but is not limited to, an executive summary, terms of engagement, interest to be valued, purpose of valuation, date of inspection, date of valuation, definition of value (market value, forced sale value, or fire insurance value, where applicable), title particulars, location details, description of the subject property, occupancy, available services, assessment and outgoings, planning control, valuation methodology, market evidence, opinion of value, and relevant appendices, exhibits, or annexures.
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Sample Appendices
Sample Title Search
Frequently Asked Questions
What is a property valuation?
A property valuation is an independent and professional opinion of a property’s value at a specific date of valluation, prepared by a Registered Valuer. In Malaysia, valuations are carried out in accordance with the Malaysian Valuation Standards (MVS) and relevant laws and regulations.
What types of properties can be valued?
Registered valuers in Malaysia can value a wide range of properties, including:
Residential properties (houses, apartments, condominiums)
Commercial properties (shops, offices)
Industrial properties (factories, warehouses)
Development land, agricultural land, farms and plantations
Specialised properties such as hotels, schools, shopping malls and hospitals
What are the common purposes of a valuation?
Valuations are commonly required for:
Intended sale or purchase of property
Bank financing and refinancing
Real Property Gains Tax (RPGT)
Estate administration and distribution, and inheritance
Financial reporting and audit
Fire insurance coverage
Compulsory acquisition
Litigation matters
How is the value of a property determined?
A valuer determines the property value by considering factors such as location, land area, building condition, title condition, tenure, zoning, market evidence, and current market conditions. Common valuation approaches include the Comparison Method, Income Method, and Cost Method, depending on the nature of the property.
How long does it take to complete a valuation?
The timeframe varies depending on the type and complexity of the property. Generally, a standard residential valuation may take 1 to 2 weeks, while more complex properties may require a longer period.
How much are valuation fees in Malaysia?
Valuation fees are typically based on scale fees prescribed by BOVAEP, depending on the value and type of property. For certain purposes, fees may be negotiated subject to professional guidelines.
Is a site inspection necessary for a valuation?
Yes, a physical site inspection is usually required to assess the building condition, layout, surrounding environment, and accessibility. With access limitation, an external inspections may be carried out with proper disclosure in the valuation report.
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