SGX RegCo, SISV to enhance standard of valuations for real estate

SISV will advise on property valuation reports and disclosures by listed companies.

Singapore Exchange Regulation (SGX RegCo) has entered into a memorandum of understanding (MOU) with Singapore Institute of Surveyors and Valuers (SISV) to collaborate for the enhancement of the standards of valuations for real estate and land properties.

Under the terms of the MOU, SISV will be able to advise SGX RegCo on property valuation reports and disclosures made by currently listed companies and listing applicants. SISV will also assist in regulating whether property valuation reports are conducted and prepared in compliance with the valuation reporting guide launched in 2018

The partnership is in response to Singapore becoming the leading hub for REITs.

“Robust property valuations are crucial to Singapore’s standing as a leading hub for REITs and property companies. SGX-listed REITs are acquiring more diverse and offshore assets and the standard of valuations should be enhanced so as to mitigate any potential risks,” says Tan Boon Gin, CEO of SGX RegCo.

Prior to the 11 January 2019 MOU between the Singapore Accountancy Commission (SAC) and SGX RegCo, an addendum was also signed for SGX RegCo to give case information to Institute of Valuers and Appraisers, Singapore (IVAS).

Similarly, IVAS will be charged to assess whether the Codes and Standards applied were upheld in the valuation of businesses.