NEWS
Advancing standards in land, property and construction RICS: 2nd Annual Valuation Conference and Prelaunch of Guidance Notes, 3–4 September 2012 By Jennifer Harrison
R
ICS, the Royal Institute of Chartered Surveyors, is the world’s leading professional body for qualifications and standards in land, property, construction and associated environment issues. At a recent conference held at the Marina Bay Financial Centre in Singapore, RICS officially launched its new ‘Red Book’ as a part of its ongoing commitment to promote and support high standards in valuation. The Red Book has been re-issued to fully incorporate the new International Valuation Standards. ‘Without internationally standardized practices, there can be no “global” market. RICS delivers products to international standards,’ says David Faulkner, Member, Professional Board of the International Valuation Standards Council, and Executive Director, Valuation and Advisory Services, Asia, for Colliers International. Chartered surveyors and asset valuers, including real estate agents, who are also RICS-qualified members are required to
follow these standards while providing any Red Book valuation services, as these standards offer the best practice guidelines and related commentary. The Red Book serves as a list of rules, best practice guidelines and related commentary for all RICS members undertaking asset valuations, and is a useful reference for valuation users and stakeholders. More than that, explains Mr. Faulkner, accurate asset valuation is extremely important to banks, lending institutions and insurance providers to the point where the valuation itself becomes an asset. Accuracy in valuation, therefore, becomes even more necessary, especially ‘in terms of proportion to lending and lending ratios’. ‘In Singapore, quality standards are relatively easy to compare based on current market values and price per square foot. Not so in the UK, for example, where the process is much more convoluted.’ The whole process of valuation is, in fact, to provide information to the mar-
ketplace and to help improve efficiency. Mr. Faulker continues: ‘Without valuation, liquidity is very stationary. Valuation helps lubricate that fixed status into a more liquid form. With more accuracy and valuations that are appropriate to the market, resources can be released into marketplace.’ At the end of the day, what any property investor wants to know is the condition and value of the property – residential or commercial – for the current market. This is where a reliable and qualified estate agent or chartered surveyor makes a difference. Ben Elder, Global Director of Valuation for RICS, says, ‘Being a good asset valuer is like being Sherlock Holmes. Valuation is a process of discovery – first you collect the evidence and then you formulate your conclusions using a unified system of checks and balances.’ There are 397 chartered surveyors in Singapore, of which approximately 30% specialise in quantity surveying and 70% in building surveying, valuation and other areas. Royal Institute of Chartered Surveyors London
12 Great George Street Parliament Square London SW1P 3AD, UK t +44 (0)870 333 1600 f +44 (0)20 7 334 3811 e zholder@rics.org Asia
THE RED BOOK Launch of the new edition of the RICS ‘Red Book’. From left: Ben Elder, RICS’ Global Director of Valuation; James Harrison, Property Life’s Commercial & Finance Officer; David Faulkner, Member, Professional Board of the International Valuation Standards Council, and Executive Director, Valuation and Advisory Services Asia, Colliers International; and Bill Jones, Director, RICS ASEAN.
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www.propertylife.asia
Room 2203, 22/F Hopewell Centre Wanchai,Hong Kong t +852 2537 7117 f +852 2537 2756 e ricsasia@rics.org, www.ricsasia.org For more information RICS, visit www.rics.org