There is an urgent need to adopt and follow a consistent property valuation approach and developing trained property valuator.
This was emphasised by the stakeholders in the one-day workshop on ‘Valuation Practice in International Standard’ jointly organised by Nepal Land and Housing Developers’ Association (NLHDA) and Brihat Investments here today.
“The housing and realty sector needs professional and educated property valuers so that the valuation becomes reliable and consistent,” said Om Rajbhandary, president of Brihat Investment and vice president of NLHDA.
He also stressed on the need of valuers being ethical so that they will not value the property based on the interest of their clients’ interest and commission.
“Moreover, the genuine valuation of property will also encourage entry of more competitive entrepreneurs in this field,” he said, adding that the workshop will help stakeholders in determining the kind of valuation approach that will be suitable for the unorganised market like Nepal.
At present, the property valuation is undertaken in Nepal only to access loans provided by the banks.
“A Valuer does not invent value, but interprets the market forces that determine the value, a professional valuer determines the value of property based upon market conditions at a given time and situation,” said Dr Sopon Pornchokchai, a real estate expert from Thai Real Estate Business School (TREBS).
“In Nepal, only cost approach of property valuation is used. There are four major approaches that are used in property valuation globally - cost approach, sales comparison approach, income approach and market approach,” informed Ramachar Srinivas, expert on real estate valuation.
“to assess the right value of the property the stakeholders -banks and valuers need to have extensive database of prices of inputs that can be referred to when valuing a property based on cost approach,” he added.
source: The Himalayan Times
