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Valuation Variance of Commercial Properties in Malaysia

Author/s: Asmah Mohd. Nasir

Date Published: 1/01/2006

Published in: Volume 12 - 2006 Issue 3 (pages 272 - 282)

Abstract

This paper investigates the variance in terms of mean difference in valuation of commercial properties between Government Valuers and Private Valuers in terms of Insurance cases and between Declared values and Department’s valuations in terms of Stamp Duty cases. The data consists of valuations of commercial properties (shop houses and shop offices). The findings showed that there is no significant difference between the Government Valuers’ valuations and the Private Valuers’s valuations for Insurance purpose, and also between the Department’s valuation and Transaction Price for Stamp Duty purpose. The estimated range of variance for Insurance is between -1.53% and 4.82% and for Stamp Duty is between -3.1% and 2.93%. Seventy five percent of the differences in Insurance valuations is less than 10 per cent. As for stamp duty data, sixty nine percent of the difference is less than 10 per cent. It is also found tha, there is no valuation bias, but normal random differences from the mean value in both cases.

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Keywords

Government and Private Valuers - Insurance - Malaysia - Stamp Duty - Valuation Variance

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