The Development of Quality Valuation Reports Framework in Malaysia

THE DEVELOPMENT OF QUALITY VALUATION REPORTS FRAMEWORK IN MALAYSIA

Associate Professor Dr. David Martin Juanil

Universiti Tun Hussein Onn Malaysia

ABSTRACT

The issue of professional valuation practice standards has recently been the focus of attention in many parts of the world. In particular, the issue of the quality of valuation reports has also been the focus of considerable international attention in recent years; particularly in Australia and the United Kingdom. This research seeks to assess whether external valuation client needs and expectations are being met concerning the quality of commercial property valuation reports in Malaysia. A property industry survey of major external users of commercial property valuation reports in Malaysia was conducted from September 2008 to May 2009 to assess client perceptions of the quality of commercial property valuation reports in Malaysia; this being the first such survey in a developing property market. This survey highlighted the stature and integrity of the valuation reports in Malaysia and the high levels of client satisfaction in valuations for all commercial property types. Concerns were raised in a number of key areas, with proposed solutions to these weaknesses identified. Ongoing issues for ISM and BOVEA regarding the continued enhanced stature of the valuation process, valuation practice standards, valuation reports and public confidence in valuers in Malaysia are identified. Given the importance of commercial property valuation reports as a key ingredient in the property investment decision-making process, this research takes on more significance in the context of the global financial crisis and the need to continue to improve all aspects of valuation standards and valuation reports as part of the integrity of and public confidence in the valuation profession in Malaysia. A framework has also been designed for improving the quality of valuation reports for commercial properties in Malaysia based upon each component of the questions in the survey.

Keywords: Commercial property, valuation reports, client satisfaction, valuation standards, Malaysia