I REFER to the letter, 'How valuations of resale flats are carried out'' (ST, July 29), by Mr Gopal Singh, head of the Housing Board's Valuation and Alienation Unit.
I, too, have been a victim of erratic valuation by an HDB-approved valuer and
I have some questions to raise.
Mr Singh said that 'the valuations of HDB flats are based on valuation principles and market practices, just like private properties. Recent transacted prices of similar resale flats in the vicinity are adopted as market evidence'.
However, this does not seem to be the case. In early June, my property was valued by a licensed valuer from HBA Group at $360,000.
I found this to be suspiciously low as properties in my neighbourhood have been selling for much higher values since last year.
According to the HDB website, the transacted prices for properties in my
neighbourhood from April last year to May this year ranged from $365,000 to $389,000.
My unit is in a block that is a five-minute walk from the MRT station and amenities, and its condition has been graded as good.
It also has a bigger floor area, 152 sq m, as compared to most which are about 145 sq m.
In terms of all quantifiable factors, my unit is superior in almost every aspect. So, how did the valuer come up with a valuation of only $360,000?
On appeal, the valuation was revised to $365,000 and, finally, to $373,000.
In less than a month, with no change in any of the factors, the value of my property has changed two times, resulting in an increase of $13,000.
Had I accepted the original valuation, as most people would, I would have lost a cool $13,000. Is this not erratic?
In preparation for my appeal, I did some research on valuation methodology. According to books and articles on valuation, the sales comparison method used looks at the price or price per unit area of similar properties sold. And as I understand it, private properties are generally valued on a per-sq-m basis.
The average transacted price per sq m in my neighbourhood is $2,521. My unit has a floor area of 152 sq m. Using a per-sq-m valuation, my unit should be valued at $383,192 and not $373,000.
When I requested the valuer to value my property on a per-sq-m basis, she flatly refused, without giving an explanation.
I have 'lost' more than $10,000. Should I not feel flabbergasted with the valuation? Ten thousand dollars is a lot of money to me, an HDB flat dweller.
Patrick Tan Siong Kuan
