Singapore: new guideline to allow valuers to weigh green buildings’ worth

SINGAPORE: Valuers will get a better sense on the worth of a building’s energy-saving features with a new guideline.

The guideline will be published by the Singapore Institute of Surveyors and Valuers (SISV) in its revised edition of Valuation Standards and Practice Guidelines, expected to be launched this November.

The Building and Construction Authority (BCA) said on Friday that the methods of valuation will remain the same, but valuers will have to consider the income and cost implications of green buildings, which are likely to raise the value of the property.

BCA said a joint study with the National University of Singapore (NUS) last year found that retrofitted commercial properties, which decided to go ‘green’, enjoy higher asset values due to significant savings in operating expenses.

“Green buildings have a tremendous impact on value, image and operational efficiency,” said Professor Lim Lan Yuan, president of SISV’s Valuation & General Practice.

“There is a need to assess the enhancement in the value and benefit of green buildings. The proposed SISV Guideline on Valuation of Green Buildings provides the framework for determining their appropriate market values,” Prof Lim added.

Mr Tan Keng Chiam, regional director and head of Valuation Advisory Services at Jones Lang LaSalle Property Consultants, said the new guideline will keep valuers up to date and ensure a more consistent approach in assessing the value of energy-efficient buildings.

“The challenge ahead is for real estate appraisers to capture the tangible and intangible benefits of green features and translate them into quantifiable economic benefits for building owners, which would compensate them for their efforts,” he said.

The valuation guideline was introduced at the Breakfast Talk for CEOs organised by BCA and SISV on Friday.

 

Source: Channel News Asia

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