Author : Sr Yap Kian Ann,
registered valuer & property consultant
October 22, 2026
What Is a Valuation Report?
A valuation report is a formal document setting out the findings and conclusions of a valuation exercise. The report must comply with the requirements stipulated in Malaysian Valuation Standard 8 (Valuation Reports).
Why Is the Purpose of Valuation Important?
A valuation is undertaken for a specific purpose, which plays a fundamental role in determining the appropriate basis and premise of valuation. Accordingly, the valuer must clearly understand and establish the purpose of the valuation to ensure that the conclusions are applied appropriately and are not used in circumstances or for purposes beyond their intended scope.
The intended purpose and the adopted basis and premise of valuation must comply with the applicable requirements, unless otherwise specified by the client or required by relevant statutory or regulatory provisions or legal documents, such as agreements or leases. Where a departure from the prescribed basis or premise of valuation is necessary, the valuer must clearly explain the reasons for adopting an alternative approach.
You should consider engaging a professional property valuer in the following situations / for the following purpose of valuation:
Intended Sale or Intended Purchase Purposes
As the property market is not a perfectly competitive market, unlike the stock market, where prices are quoted for each security, valuation can help market players make informed decisions and seek to achieve the best possible price, selling at the highest reasonable price or buying at the lowest reasonable price.
Due to the inherent imperfections of the property market, property transaction decisions are influenced by the circumstances, knowledge and motivations of buyers and sellers. Therefore, the actual transacted price may differ from Market Value. For example, a seller who urgently needs money may accept a lower price, while a buyer who urgently needs a property may be willing to pay more. A buyer or seller may not know the prevailing market price, a property may be sold to a family member or friend at a price that differs from market conditions, or a buyer may pay more for a property that has special value to them, such as adjoining land. These factors explain why similar properties may be transacted at different prices. A registered valuer must therefore examine the circumstances of each transaction before using it as evidence of Market Value. Simply calculating the average of recorded prices is insufficient. Professional judgement is required to select suitable comparable transactions and make appropriate adjustments.
Before purchasing a property, a valuation report can provide relevant information and data to help you assess its Market Value and negotiate with the seller.
A valuation report prepared by a registered valuer can also help you set a realistic asking price when selling your property. It provides an opinion of Market Value to guide you in setting a reasonable and marketable asking price for negotiation.
This is particularly important for non-standard or individually designed properties, such as corner houses with additional land, extended houses, owner-constructed houses with distinctive designs and finishes, car parks, factories and large office spaces.
Fire Insurance Valuation
In accordance with the provisions of the Strata Management Act 2013 (Act 757):
Sub-section 94(1) – Any building shall be insured for at least the reinstatement value of the building indicated by the last valuation obtained for the building; and
Sub-section 94(2) – For the purpose of determining the reinstatement value of the building that is required to be insured under this Part, a reinstatement valuation of the building shall be obtained from a registered valuer at least once every five years.
This valuation report has been prepared to assess the Fire Insurance Value of the subject property, enabling the owner to obtain and maintain adequate insurance coverage against fire and related perils.
This helps ensure that the property is neither underinsured nor overinsured.
You may refer to our earlier insight titled “Fire Insurance Valuation.” (https://www.agilitymy.com/insight-en/fire-insurance-valuation/).
Development Charge
When you propose a development on your land, changes to the land use, permitted density or floor area may result in a Development Charge being imposed by the local planning authority, which is generally the local council. In such circumstances, you may be required to submit a valuation report to the authority to determine the Increase in Land Value arising from the proposed development. This increase forms the basis for calculating the Development Charge payable.
Pursuant to paragraph 22(4)(b) of the Town and Country Planning Act 1976, planning permission shall not be granted by the local planning authority until the applicable Development Charge has been paid or approval has been obtained for payment by instalments.
A competent registered valuer can carefully assess your proposed development and undertake a thorough valuation analysis to ensure that the Increase in Land Value is fairly and accurately determined and properly substantiated, helping to minimise your Development Charge liability where justified.
To learn more about the concept of Development Charge, please visit: https://www.agilitymy.com/insight-en/development-charge-its-concept-and-valuation/
Real Property Gains Tax (RPGT)
If you inherit a property from a deceased person and subsequently dispose of it, a valuation report may be required to establish the Acquisition Price for Real Property Gains Tax (RPGT) purposes.
You may refer to our earlier insight titled “RPGT Valuation Malaysia – Valuation Report Is Required When You Are Disposing of a Property Inherited from a Deceased Person”. Click here to access it: https://www.agilitymy.com/insight-en/valuation-report-is-required-when-you-are-disposing-a-property-inherited-from-deceased-person/.
Litigation & Court Matters
A professional property valuation may be required in legal disputes involving property, such as inheritance claims, divorce proceedings, shareholder disputes or disputes over property ownership. A registered valuer provides an independent and impartial assessment of the property’s value to support legal proceedings, negotiations, or settlement. Services include the preparation of valuation reports, rebuttal reports to address opposing valuation opinions, and attendance at court hearings to provide professional testimony and clarify valuation findings.
This property consultancy service is essential in cases involving disputes over property value. The valuer may also assist in compulsory land acquisition cases at both the Land Administrator and High Court levels.
A competent and experienced litigation valuer is important because the valuation may be scrutinised by lawyers, opposing experts and the court. The valuer must provide an independent, impartial and well-supported opinion of value, using appropriate valuation methods, reliable market evidence and clear reasoning. Competence is also essential when preparing rebuttal reports, responding to challenges from opposing parties and giving professional testimony in court. A credible valuation report helps the court understand the valuation issues and supports a fair and informed resolution of the dispute.
Accounting / Financial Reporting Purposes
Agility Valuers & Property Consultants Sdn. Bhd. provides professional valuation services to determine the Fair Value of properties for accounting and financial reporting purposes. These services include annual valuation reviews, preparation of valuation reports, and discussions with auditors to clarify valuation assumptions, methodologies and findings. We cover various types of properties, including shopping malls, hotels, office buildings and land.
A competent valuer for accounting purposes ensures that property assets are valued accurately and independently at Fair Value. This supports reliable financial reporting, asset revaluation, annual reviews and discussions with auditors, helping businesses meet accounting requirements and maintain transparency.
Internal Management
A valuation report is an important asset management tool, providing property owners and investors with an informed understanding of the current Market Value of their property portfolios. It supports internal portfolio reviews, investment performance measurement, and strategic decision-making, including asset retention, acquisition, divestment and disposal planning. The valuation findings can also assist in identifying underperforming assets, evaluating potential returns, optimising asset allocation, and formulating long-term property management and investment strategies.
Sewerage Capital Contribution / Indah Water Konsortium (IWK) Valuation
As part of the Sewerage Capital Contribution (SCC) assessment, a registered valuer or valuation firm in Malaysia appointed for IWK-related valuation determines the Market Value of unsold development units and properties that are not intended for sale.
The Sewerage Capital Contribution generally applies to buildings intended for sale, regardless of whether the units have been sold or remain unsold, as well as buildings not intended for sale. However, certain categories of buildings, including low-cost residential properties, places of worship, government or government-aided schools, community buildings and charitable buildings, may be subject to specific rates or concessions, as applicable.
A competent registered valuer can assess the relevant components of your property and determine their Market Value fairly and accurately, helping to ensure that the contribution payable is properly assessed and minimised where justified.
Grant of Probate, Inheritance & Estate Distribution
Registered valuers can provide an independent assessment of the property’s Market Value to facilitate the fair and equitable distribution of assets among beneficiaries. The valuation report may support estate administration, probate applications, and the transfer or redistribution of property ownership among family members or beneficiaries. It can also assist executors, administrators and legal representatives in determining the value of the estate, evaluating distribution options, and facilitating negotiations among beneficiaries. By providing an objective and professionally supported valuation, the report helps promote transparency, minimise potential disputes, and support informed decision-making throughout the estate settlement process.
Divorce or Partnership Dissolution
A registered valuer can act as an independent property consultant by providing an objective and impartial opinion of the property’s Market Value to facilitate the fair division of assets between parties. This may arise in divorce proceedings, inheritance disputes, partnership dissolution or other legal matters involving property division. The valuation report provides a professional basis for determining each party’s respective interest and may be used to support court proceedings, settlement negotiations or mutual agreements. By establishing a well-supported and independent assessment of value, the valuer can help parties make informed decisions, facilitate negotiations and minimise potential disputes over the division of property assets.
Retrospective Valuation
A Retrospective Valuation involves determining the Market Value of a property as at a specified date in the past. Unlike a conventional valuation, which assesses the property’s value as at the current valuation date, a retrospective valuation considers relevant market conditions, transaction evidence and other information available or reasonably foreseeable at the historical date.
This type of valuation is commonly required for Real Property Gains Tax (RPGT) purposes, particularly where the property’s acquisition price cannot be readily established or where the applicable legislation requires its Market Value to be determined as at a specific historical date.
Forced Sale Value
Forced Sale Value (FSV) is the estimated amount that may reasonably be obtained from the sale of a property when it must be disposed of under circumstances that do not meet all the conditions of a normal Market Value transaction.
Unlike Market Value, a Forced Sale Value takes into account circumstances where a property must be sold within a limited timeframe, often involving a shortened marketing period, restricted exposure to potential buyers, limited room for negotiation, or a seller facing financial difficulties or other pressures that necessitate a quick disposal.
Bank Financing or Refinancing
Valuation reports are commonly required for financing purposes, as banks and financial institutions generally require an independent assessment of a property’s market value before approving a loan, mortgage or refinancing facility.
Final Note
A professional property valuation provides an independent and reliable assessment of a property’s Market Value to support informed decision-making. Whether for taxation, fire insurance, Development Charge, litigation, accounting or development purposes, engaging a competent registered valuer helps ensure that the valuation is properly assessed, supported by relevant market evidence and prepared in accordance with applicable valuation standards and requirements.
Please contact our property consultants for further clarification or to discuss your property valuation requirements. We are ready to assist you with our professional valuation services.
Contact: A-5-6, Level 6, Block A, Jaya One, No. 72A, Jalan Profesor Diraja Ungku Aziz, Seksyen 13, 46200 Petaling Jaya, Selangor. Tel : +603 – 9544 2694 | WhatsApp : +6012 – 733 5356 Email : agility@agilitymy.com Website : www.agilitymy.com
Frequently Asked Questions (FAQs)
A property valuation report is a formal document prepared by a registered valuer that provides an independent opinion of a property’s value based on relevant market evidence and appropriate valuation methods.
A property valuation may be required when buying or selling a property, applying for bank financing, obtaining fire insurance coverage, calculating Development Charges, handling inheritance matters, or resolving legal disputes.
A registered valuer provides an independent and professionally supported opinion of value to help you make informed decisions, negotiate property transactions and meet relevant legal, financial or regulatory requirements.
Market Value reflects the estimated price a property would reasonably achieve under normal market conditions. Forced Sale Value considers circumstances where a property must be sold within a limited timeframe, potentially affecting the achievable price.
Agility Valuers provides professional valuation services for various purposes, including property transactions, fire insurance, Development Charges, RPGT, litigation, accounting, estate distribution and bank financing. Our registered valuers provide independent assessments to support your property-related decisions.
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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
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