VGP Express. Save the Date! The. The Fast Changing Professional Landscape of the Real Estate Industry. Singapore Institute of Surveyors and Valuers

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1 I S S U E 6 - O C T O B E R The VGP Express Singapore Institute of Surveyors and Valuers 27th VGP Council 2015/2017 President Dr Lim Lan Yuan 1 st Vice President Tan Choi Heng 2 nd Vice President John Teo Hon Secretary Goh Heng Hoon Hon Treasurer Ian Loh Asst Hon Secretary Richard Tay Council Members Ivy Tan George Low Png Poh Soon Eric Chan Tan Keng Chiam Joseph Yee Valenie Chwee Soh Chor Yin Ong Shujuan The Fast Changing Professional Landscape of the Real Estate Industry In this new age market, it is important for professionals in the real estate industry to be quick to adapt to a multitude of new business competition. With enhanced new skills and knowledge, estate agencies and real estate companies would be in a better position to compete in this ever evolving business and economic landscape. Even with the challenging market conditions, there are always areas of new opportunities and potential. Save the Date! Inaugural Property, Strata & Facility Management Conference 17 November 2016 The 8th WAVO Congress Daegu, Korea 1-3 November 2016 FIABCI Business Meeting Nice, France 30 November - 2nd December 2016

2 The VGP has been organizing various conferences and seminars to provide members and real estate practitioners with a quick update and information on the market. In each of these sharing and learning sessions, the VGP hopes that in some ways this would help members to continue to thrive amidst a diversity of new market challenges. Salespersons and Estate Agents learned the finer points of handling tough sales markets and challenging environment which would form the business platform where many will face in the coming years. For our Valuation Members With the advent and increasing disruption caused by technology, valuation today is no longer predominantly that attributing to real estate. In our recent Valuation Conference, members heard from the welcome speech of the President that the valuation industry has quietly been undergoing some form of évolution with the growing dominance by banks, financial institutions, insurance companies, special purpose vehicles, REITs and other asset managers, trusts funds, etc which are known to hold many types of assets other than real estate. This has led to the increasing importance in the valuation of the financial markets entailing the valuation of Intellectual Properties, Business Valuation and Valuation of Financial Reporting. Valuation practitioners and trainers in the region and global markets have been gradually acquiring the skill and knowledge to conduct these varied valuation models. Our local valuers who are familiar with the valuation of Real Estate would be seen to be inadequate without updating themselves with these new skills and appreciating the inevitable influence by the International Valuation Standards, and that of The Financial Reporting Standards. Whether the local market is ready to embrace this inflow of new valuation methodologies, the stage has set for this interface of change in the world of valuation practice. The VGP would also be hosting the inaugural Property, Strata and Facility Management Conference on 17 November While the Property, Strata and Facility Management may form the smallest cluster among the three Valuation, Estate Agency and Property and Facility, it is by no means the least importance. As with the aid of technology and machines, we are constructing bigger, faster and better buildings to live and work in. Like agency and valuation works, technology has also encroached into our home and workplace. Today we often heard of smart buildings and intelligent office buildings and of late even that of smart and sustainable living environment. This is of course good. However to ensure that we are able to continuously reside in these smart buildings, the importance of maintenance to ensure a safe and properly maintained home environment is the role that entails the expertise of practitioners of property and facility managers. With the development of increasing sophisticated and modern homes, their expertise and knowledge would also need to be updated and keep in line with these new age facilities where buildings are no longer your brick and mortar. This Conference is timely and the VGP would like to encourage property and facility managers to attend as well as other real estate practitioners who are interested in the world of property and facility management of the buildings that we construct. 2

3 Singapore Realtors Conference August 2016 The VGP successfully hosted its 3 rd annual Singapore Realtors Conference The Conference was well attended by property agents as well as staff from the Council for Estate Agencies including their DED Mr Chan Mun Kit. It was a very illuminating Conference where speakers shared very current and relevant topics such as on how the ASEAN Economic Community, Trans Pacific Partnership and One Belt One Road policies may shape the real estate industry in Singapore and the region as well as that on Standard Operating Procedures for Estate Agencies, among other interesting topics. The VGP also took the opportunity during the opening session of the Conference to launch the SISV Private Residential Price Index for the Mass Market (SISV Index). The SISV Index is an information tool that is based on the volume of transactions. It tracks price movement in the four core suburban regions giving users a direct sense of the average transacted prices in each quarter. Thus the Index provides potential homebuyers and sellers with an easy-to-understand measure of immediate price movements. The SISV Index is compiled on a quarterly basis and will be published in quarterly Private Residential Market Research Report produced by the Institute. The report is posted on the SISV Services website as an added feature for subscribers. 3

4 SISV Valuation Conference th October 2016 The SISV Valuation Conference 2016 was well attended by some 180 participants including many valuers, industry practitioners and other real estate professionals from developers, banks, REITs, assets managers, investors as well as authorities like HDB, URA, IRAS and LTA. The Theme for this year s Conference is, Challenges and Opportunities in Valuation. The Valuation and real estate industry has seen many changes recently. This can be attributed to the increasing diversity of the business services sectors led by the trend towards internationalization and the sometimes disruptive effects of technology which Valuers will need to harness and ride upon. This Conference serves as a platform for Valuers to keep in touch with the latest happenings in the industry as well as a gathering where Real Estate professionals can dialogue and exchange views. 4

5 Among the key areas of concern which Dr. Lim Lan Yuan, President, VGP, SISV have identified are, The SISV Valuation Standards and Practice Guidelines essentially set the rules whereby our valuers have to conform when issuing valuation reports. The International Valuation Standards (IVS) and the International Financial Reporting Standards (IFRS), which have often been overshadowed by the local Valuation Standards due to the localized nature of the property market in Singapore, are increasingly necessary for our valuers to appreciate. Thus the likes of Business Valuation, Valuation of Financial Reporting and Valuation of Intellectual Properties are today as crucial as Valuation of Real Estate and that for Plant and Machinery. To provide not just a local perspective and recognizing the trend towards internationalization, we have also invited 3 speakers from Hong Kong to share with us their in-depth knowledge and expertise on the Business of Financial Instruments, New Financial Reporting Standards and Challenges and Business Valuation from Corporate Perspectives. The Valuation and General Practice is also pleased to take this opportunity to announce the SISV Practice Guide on Financial Reporting Standards 113 (FRS 113). This will be a new section added onto the existing SISV Valuation Standards and Practice Guidelines. This new Guideline (1 October 2016) will provide all members with a better understanding of the local requirements under the International Financial Reporting Standards (IFRS) 13. All SISV members have to be conversant and compliant with this set of Standards and Practice Guidelines when conducting Valuation for Financial Reporting. 5

6 FIABCI (International Real Estate Federation) FIABCI PRIX D EXCELLENCE AWARDS 2016 & SINGAPORE PROPERTY AWARDS 2016 DINNER Prix d'excellence Award is one of FIABCI s highlights. The FIABCI Prix d'excellence recognises projects that display distinction in various aspects of the development. Entrants are evaluated on the following criteria: overall concept; architecture and design; development and construction; community benefit and environmental impact; and financial and marketing. To ensure that top quality projects are submitted to participate in the FIABCI Prix d Excellence to promote Singapore s excellence in design and architecture, FIABCI Singapore has launched its Inaugural Singapore Property Awards in June This year, the FIABCI Singapore Chapter will be hosting the Singapore Property Awards Dinner on 21 st October 2016 at the Regent Singapore. Twelve property projects have won awards in various categories, namely Master Plan, Sustainable Development, Industrial and Residential (High Rise/Mid Rise/Low Rise). Winners will qualify to submit their projects for the FIABCI Prix D Excellence Awards to be held in FIABCI World Congress in May FIABCI DECEMBER BUSINESS MEETING NICE, FRANCE SISV (VGP) : 10 CPD Credit Hours Sustainability, 4th industrial revolution, local and international management, satisfaction closer to our customers worldwide. These are the issues and challenges that our professions are facing on the 21st century. Our December Business Meetings will seek to reflect with you the practices and adequate tools for the benefit of our business and the renowned FIABCI International. 6

7 The 28 th Pan Pacific Congress (PPC) of Real Estate Appraisers, Valuers and Counselors was successfully held in Kyoto, Japan from September Hosted by the Japan Association of Real Estate Appraisers and with the theme Toward Expanding the Role and Expertise of the Valuation Profession in Ever-Changing Global Economy, the Congress was well attended by close to 700 participants including some 200 participants from overseas countries such as the United States, Australia, New Zealand, Vietnam, Republic of China (Taiwan), Indonesia, Korea, Mexico, Philippines, Mongolia, Honolulu, Malaysia, India, China and Singapore. The Congress was opened with the Chief Delegates of each of the member countries giving a keynote speech and the Chief Delegate from Singapore is Dr Lim Lan Yuan, President (VGP) SISV. At the Congress, various veteran speakers were heard sharing their views on the Role of Appraisers in rapidly changing global financial market and Valuation related to International Financial Reporting Standards (IFRS) and International Valuation Standards (IVS) while speakers for the technical papers provided interesting insights on topics like Land Appraisal without Market Data, Valuation of Floor Area Ratio by Reflecting Nonlinear & Spatial Effect and Healthcare Assets in Japan. For the closing ceremony, the flag of the PPC was handed over to the representative of Mexico and they would be hosting the 29 th PPC in Tijuana from 8 to 13 October Following Mexico, Malaysia is expected to be the next member country to host the 30 th PPC. Participants also witnessed and welcomed the Country of Philippines who is rejoining PPC after a lapse of many years. SISV (VGP) : 10 CPD Credit Hours The Korea Appraisal Board will be hosting the 8 th Congress of World Association of Valuation Organizations (WAVO). Quality and Efficiency in valuation have become vital elements for stable taxation and real estate market. Thus more professional, legitimate and accurate valuation is required for continuous development in the field. The theme for the Congress is Enhancing the Quality and Efficiency in Valuation. Topics to be covered include Establishing Precise Valuation Standard, Building Valuation Monitoring System and Artificial Intelligence & Valuation. WAVO look forward to your participation and hope you ll have an excellent time in Korea. 7

8 Inaugural Property, Strata And Facility Management Conference November 2016 (Thursday) York Hotel, 21 Mount Elizabeth Singapore Theme Critical Issues in Maintenance and Management SISV (VGP) : 6 CPD Credit Hours Supported By This inaugural SISV conference focuses on successful property and facility management. It deals with emerging issues relating to both the management and administrative aspect as well as the technical and operational problems in buildings and facilities. The morning sessions will discuss matters relating to human resource management, implementation of work, health, safety regulations and guidelines, performance-based cleaning contracts and conflict management. The afternoon sessions will discuss matters relating to the technical and operational aspects such as landscape and pest management, building maintenance, and maintenance of the building services. The purpose is to provide a better understanding of the maintenance problems and help to improve the operational performance in property management. VGP CPD COURSES Certificate Course in Marketing of Industrial Properties (CEA SN:C2L3S0495) (Total 5 days 3 hours each day + Assessment) Dates : 14, 16, 21, 24, 28 November & 2 December 2016 Endorsed by Council for Estate Agencies 2 nd Batch Commencing Registration 6 CEA Core CPD credits awarded under Core Category 2/ Level 3 approved by CEA for the mandatory CPD Scheme Approved for SkillsFuture Credit and also WDA Funding under the Broad-based Scheme SISV (VGP) : 10 CPD Credit Hours This Certificate Course is to equip estate agents/salespersons on the fundamentals in marketing industrial properties in Singapore. As JTC and HDB are the two largest developers and managers of industrial properties in Singapore, it is necessary that estate agents/salespersons be informed of the policies and regulations of JTC and HDB with regard to the use and occupation of industrial properties. In addition, estate agents/salespersons should be acquainted with the relevant portions of the guides and regulations introduced by CEA and other relevant authorities that relate to the marketing of industrial properties. Please look out in our website for the new launch date of this course. 8

9 KEY CIRCULARS / NEWS ISSUED BY AUTHORITIES Valuation and General Practice Circulars 10 August 2016 Good Valuation Practice Signing Off Valuation Report / Site Inspection To Be Carried Out For All Revaluation 11 August 2016 Good Valuation Practice Professional Competence and Practice Building and Construction Authority 8 July 2016 BCA announces details of tightened lift maintenance regime and new escalator safety regulations 27 July 2016 BCA to expand Accessibility Mandatory Requirements for Existing Buildings 10 August 2016 Safety requirements when adding Greenery, Solar Panels and other Features to Building Rooftops under the Building Control Act 12 August 2016 BCA, JTC and NCCS jointly launch Singapore s first climate-focused hackathon for green solutions 7 September 2016 BCA s revised Green Mark for residential buildings aimed at enabling residents to adopt more sustainable lifestyle 20 September 2016 BCA sets up a national repository of green technology for buildings Council For Estate Agencies 2 September 2016 Prevention of Money Laundering and Countering the Financing of Terrorism Guidance on submission of suspicious transaction reports (STRs) related to the Panama Papers Housing & Development Board 1 July 2016 Flash Estimate of 2 nd Quarter 2016 Resale Price Index 22 July 2016 Release of 2 nd Quarter 2016 Public Housing Data 3 August 2016 New Site identified for Selective En Bloc Redevelopment Scheme in West Coast 17 August 2016 HDB launches 4,841 flats in August 2016 BTO Exercise 29 August 2016 More than 1,300 shops to benefit from HDB s enhanced Revitalisation of Shops (ROS) Scheme 8 September 2016 Unveiling the Masterplan for Tengah : At Home With Nature 19 September 2016 Lift Enhancement Programme (LEP) to support costs of modernization of lifts in HDB estates Monetary Authority of Singapore 1 Septemebr 2016 TDSR Rules on Refinancing Fine-tuned Singapore Land Authority 31 August 2016 SLA launches new online service, MyProperty, to offer free access to title information for property owners 4 September 2016 SLA launches OneEmap to further GeoSpatial education Singapore Civil Defence Force 1 July 2016 URA releases flash estimate of 2 nd Quarter 2016 private residential property price index Urban Redevelopment Authority 1 July 2016 URA releases flash estimate of 2 nd Quarter 2016 private residential property price index 22 July 2016 Releases of 2 nd Quarter 2016 real estate statistics 12 Aug 2016 Extension of Validity Period for Circular on New Development Applications for Hotel, Boarding House and Backpacker s Hostel Uses 31 August 2016 Revision of Development Charge Rate 9

10 ISSUE 6 OCTOBER 2016 SISV Annual Dinner and Dance 2016 Many Beats One Rhythm The SISV Annual Dinner 2016 which was held on 29 July, was a night filled with fun, songs and laughter. This year the Institute also had the pleasure of inviting Mr Desmond Lee (Senior Minister of State for Home Affairs and National Development). It was a fantastic night for members, guests and staff at SISV to mingle with one another in a cool and relaxing surrounding. 10

11 On 17 September 2015, CEA issued a Practice Circular (PC) on the Prevention of Money Laundering and Countering the Financing of Terrorism. Under the PC, Estate Agents (EAs) and salespersons shall verify your clients identities and ask them to complete the Customer s Particulars Form provided in Annex D of PC for all transactions. The customer particulars obtained will help you in assessing whether there is suspicion of money laundering (ML) or terrorist financing (TF) activity. Further on 30 Sep 2016, CEA had issued General Circular GC on the Prevention of Money Laundering and Countering of Financing Terrorism, which provided estate agents and salespersons with an updated Alert List. All members are advised to lodge a Suspicious Transaction Report if you know or have reasonable grounds to suspect any transactions linking to such criminal conduct. Secretariat : Teo Li Kim Janet Han Neo Ping Ping Singapore Institute of Surveyors and Valuers 110 Middle Road #09-00 Chiat Hong Building Singapore Tel : Fax : Website : The VGP Express is a quarterly publication of the Singapore Institute of Surveyors and Valuers. Distribution is restricted to members and those organizations and institutions of higher learning associated with the Institute.