Upon receiving instructions to proceed with the valuation of a property in Kuala Lumpur (or any other locality), property valuers will undertake the necessary checks, searches, data compilation, site inspection, valuation computation, and report drafting through to the completion of the final valuation report.
Understanding the Purpose of Valuation
There are many purposes for a valuation, and the purpose must be clearly specified at the point of instruction, or even prior to that. This enables property valuers to determine the appropriate valuation format, scope, intensity, compliance requirements, and other preliminary matters.
Studying the Information and Documents
The preliminary works include reviewing information and documents furnished by the client, such as:
Title deed
Approved building plans
Planning approval letter
Certificate of Completion and Compliance (CCC)
Quit rent and assessment statements
Building construction contract sum
Tenancy agreements (if any)
At this stage, property valuers will also compile property transaction and rental data, as well as conduct planning checks under the relevant local plans.
Determination of Basis of Valuation
Property valuers will determine the appropriate basis of valuation according to the purpose of valuation, in accordance with the Malaysian Valuation Standards (MVS) issued by the Board of Valuers, Appraisers, Estate Agents and Property Managers Malaysia (BOVAEP).
Inspection of the Property
A physical site inspection of the land and building is a mandatory scope of work in the preparation of a valuation report. The inspection helps to confirm the condition of the land and building within the ambit of valuation.
It also assists in identifying both positive and negative factors affecting the subject property, such as:
Proximity to oxidation ponds
Location at a T-junction
Electrical transmission lines nearby
Proximity to playgrounds
Building maintenance and condition
Renovations and extensions
Compliance with building by-laws
Surrounding amenities (hospitals, schools, retail malls)
Exposure and visibility (particularly for commercial properties)
Measurement of the building will be carried out to determine the gross floor area, which contributes to the assessment of the depreciated building value.
Title Particulars
It is the duty of property valuers to study the title conditions, as the title is one of the key factors influencing market value. A title search will be conducted to confirm the title particulars.
For further reference, please refer to our earlier insight:
“Valuation & Title: How To Read Malaysian Land and Strata Titles.” (https://www.agilitymy.com/insight-en/valuation-and-title-how-to-read-malaysian-land-and-strata-titles/).
Market Research & Comparable Transactions
Property valuers are required to compile recent transactions of comparable properties as evidence to support and justify the recommended market value.
These data are typically obtained from:
JPPH (NAPIC) transaction records
Bursa Malaysia announcements
Asking prices in the market
Sale and Purchase Agreements
Valuation Workings
With the complete set of information and documents of the subject property, together with research findings and transacted property data, property valuers will perform valuation calculations to determine the market value.
At this stage, property valuers will decide on the most appropriate primary method of valuation, as well as any supporting or cross-check methods. These may include:
Comparison Method
Investment Method
Residual Method
Profit Method
Cost Method
Discounted Cash Flow (DCF) Method
Under the Comparison Method, transacted properties are tabulated and relevant adjustments are made to account for differences between the subject property and each comparable transaction. An average adjusted rate is analysed, and the most reliable comparable transaction(s) is selected and adopted. The adjusted rate of this selected comparable is then applied to the subject property to determine the market value.
Preparation of Appendices, Schedules and Exhibits
These may include:
Copy of title furnished by the client
Title search
Tenancy agreement
Approved building plans
Planning approval letter
Location plan
Site plan
Building plan
Photographs
Aerial photographs
Aerial view videos
Preparation of the Valuation Report
The valuation report will typically contain:
Executive Summary
Terms of Engagement
Description of the Subject Property
Purpose of Valuation
Date of Inspection
Date of Valuation
Definition of Market Value / Forced Sale Value / Fire Insurance Value (if applicable)
Title Particulars
Location
Description of Improvements
Occupancy
Services
Assessment
Planning Control
Method of Valuation
Evidence of Value
Opinion of Value
Limiting Conditions
Frequently Asked Questions
What is “Market Value” in property valuation?
Market Value refers to the estimated amount for which a property should exchange between a willing buyer and a willing seller in an open market, after proper marketing, where both parties act knowledgeably and without compulsion.
Why is it important to state the purpose of valuation?
The purpose determines:
The basis of valuation (e.g., Market Value, Forced Sale Value, Fire Insurance Value)
The format and scope of the report
The level of investigation and compliance required
The applicable standards under Malaysian Valuation Standards (MVS)
Without a clear purpose, the valuation approach may not be appropriate.
Do property valuers need to inspect the property physically?
Yes. A physical inspection is a mandatory requirement. It allows the valuer to:
Confirm the condition of the property
Identify positive and negative factors
Verify building size and improvements
Assess surrounding influences
Site inspection ensures accuracy and professional compliance.
How do valuers determine the market value?
Valuers analyse recent comparable transactions and apply suitable valuation. Adjustments are made to reflect differences between the subject property and comparable properties before arriving at the final opinion of value.
What documents are typically required for a valuation?
Common documents include:
Title deed
Approved building plans
Planning approval
Certificate of Completion and Compliance (CCC)
Quit rent and assessment statements
Tenancy agreements (if applicable)
Providing complete documents helps ensure a more accurate and efficient valuation process.
————————————————————————————————————————————————————————————————————————————
This blog / insight is based on Agility Valuers & Property Consultants / Agility Research (AVPC)’s current understanding and insights about the related topic in the current property / real estate market context. Agility Valuers & Property Consultants / Agility Research (AVPC) makes no guarantees, representation or warranties of any kind, expressed or implied, regarding the information including but not limited to, warranties of content, accuracy and reliability. Interested parties should undertake their own inquiries as to the accuracy of the information. Agility Valuers & Property Consultants Sdn. Bhd. / Agility Research (AVPC) excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss or damages arising therefrom.
Neither the whole nor any part of our blog or insights may be included in any published document, circular, prospectus or statement, nor published in any way without the prior written approval of Agility Valuers & Property Consultants Sdn. Bhd. / Agility Research (AVPC). We shall not be obligated to update this blog / insight in response to changes in market conditions or the regulatory environment subsequently.
For more information, please contact:
Sr Yap Kian Ann
Tel: 603-9544 2694 Email: yap@agilitymy.com
HP : 6012-378 5811 Website: www.agilitymy.com
All Rights Reserved
Copyright © 2025 Agility Research
