Bangkok--Jan 12--CB Richard Ellis
Property valuation became the focus of attention in Thailand during the economic crisis of the late 1990’s. Even as the economy and the property market recover and grow, there is limited understanding by the general public about property valuation. “Both the Thai Valuers Association and Valuation Association of Thailand have taken steps to broaden public knowledge about property valuation but misunderstandings still occur, “according to Mr. Annop Sangprasit, executive director of Valuation and Advisory at CB Richard Ellis.
“Valuers report to instructing clients and confusion can arise when only parts of a report are looked at without examining the original instruction that confirms the basis of valuation, in particular information provided, specific assumptions and valuation method. Valuation reports must be looked as a whole rather than only focussing on the reported value.”
Property valuation has become significantly more important for the Thai economy, closely linked to improved accountancy standards and a more sophisticated financial environment. International Asset Valuation standards are being adopted as the Thai economy becomes more integrated with global financial markets. It is important that the general public becomes better informed about basic valuation method and ethics for professional valuers.
Valuation like other professions such as accountancy and engineering has a set of professional ethics which should be followed by all valuers. There are more than 40 valuation firms in Thailand of which 37, including CB Richard Ellis (Thailand) Co., Ltd., are listed with the Securities and Exchange Commission (SEC) which supervises asset valuation for public companies.
To decide whether the value of a property calculated by a property valuer is reliable or not, you should consider carefully the contents of the property valuation report containing principles and method as well as key data specified by the instructing client such as details of formal instruction, general and specific assumptions from clients, purposes of the valuation, information requirements, valuation approach, and definition of value.
Even the definition of value depends on the purpose of the valuation. Open market value can be based on existing use or highest and best use of the property whereas the best method for calculating the value of an asset to be used in a joint venture maybe existing use only.
Annop added, “In some cases, property valuers come up with different results when valuing the same property. This does not mean that the values are incorrect, but it is because they might have received different information about details, methods, assumptions, and purpose of valuation.”
“It is time consuming to create public understanding about property valuation through existing associations. However, if the public require more information, they can contact the property valuation associations directly.”
CB Richard Ellis believes that greater public understanding of valuation methods will provide greater public confidence in professional valuation services from ethical property valuers.
About CB Richard Ellis
Headquarter in Los Angeles, CB Richard Ellis is a leading global real estate services firm. With more than 17,000* employees, the company serves real estate owners, investors and occupiers throughout 300 principal offices worldwide. The company’s core services include property sales, leasing and management; corporate services; facilities and project management; mortgage banking; investment management; capital markets; appraisal and valuation; research and consulting. CB Richard Ellis is a public company, listed on the New York Stock Exchange under the symbol CBG.
CB Richard Ellis established an office in Bangkok in 1988 and in Phuket in 2004. CB Richard Ellis (Thailand) Co., Ltd. has grown to be a leading real estate services provider, offering a full range of services including sales and leasing for all types of property, property and facilities management, valuation and advisory, and research and consulting. For more information, visit the company's website at www.cbre.co.th.
For further information:
Mr. Annop SangprasitExecutive Director 02 654 1111
Ms. Ngamjai Jearrajarat Corporate Communications Manager
02 654 1111 Ext. 522 End.