Understand the fundamentals of valuations of the real estate market and the challenges in assessing market parameters in tandem with the current trend and direction of the real estate market in Malaysia.
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The real estate market in Malaysia experienced its last significant downturn in 1997 as a result of the Asian Financial Crisis whilst a minor set-back was experienced in 2008. The 1997 downturn resulted in property values declining substantially, albeit in varying degree amongst the various real estate sectors and sub-sectors. Properties within some sub-sectors experienced between 30% and 40% decline in property values and the lessons learnt were painful to many stakeholders. Valuation of real estate faced numerous challenges which were compounded by lack of market data to support valuation opinions.
The current Malaysian real estate market is in a period of consolidation. Valuers are beginning to face circumstances which may or may not necessarily be similar to 1997. The difficulty faced by valuers who experienced the 1997 crisis is to provide some support in terms of decision-making in the current situation. However, the real estate market in Malaysia has achieved a significantly higher level of maturity in the current era and therefore past experiences may prove to be purely academic in the context of today’s real estate market structure and dynamics.
One of the main challenges in undertaking valuation in the current market environment primarily entails substantiation of value opinions based on market data as well as pragmatic assessment of factors which affect value and parameters adopted in the valuation. This will be an arduous task for any valuer who is required to provide an opinion of value at a time when a real estate market is facing a shift in trend. Furthermore, stakeholder expectations will be at an all-time high in terms of valuers substantiating lower property values during a downturn.
This CPD seminar will cover consideration in valuations of the current fundamentals of the real estate market in order to arrive at value opinions which will be able to withstand extensive scrutiny especially in light of declining property values. It will also focus on the key aspects of various valuation methodologies which are adopted in arriving at an opinion of value and in this respect the challenges in assessing market parameters in tandem with the current trend and direction of the real estate market in Malaysia.
Prem Kumar has 30 years of extensive experience in providing real estate professional services. He started his career with Jones Lang Wootton in 1987, gaining experience in undertaking valuation of various types of properties including, amongst others, office buildings, hotels, industrial premises, plantations, townships, development land, on-going development projects as well as plant and machinery.
Besides valuations, he also has extensive exposure to the entire spectrum of real estate professional services such as agency, asset/property management and research and consultancy. He became a Proprietary Partner / Executive Director of Jones Lang Wootton in February 1998.
He is a Fellow of the Royal Institution of Chartered Surveyors (RICS) as well as The Royal Institution of Surveyors Malaysia (RISM) besides being a Valuer and Estate Agent registered with the Board of Valuers, Appraisers and Estate Agents, Malaysia.
He is currently the Chairman of the Malaysia Board of the Royal Institution of Chartered Surveyors and was previously a Board Member of the Asia World Regional Board, also of the Royal Institution of Chartered Surveyors.