ST Forum : Same bank, same property but...

Jan 18, 2011

Same bank, same property but...

'Valuations differed by $200,000. Shouldn't valuations be based on fundamentals, rather than sentiment?'

MS YVONNE LEE-LEK SIEW LING: 'There is a need to legislate how desktop valuations are produced ('New measures to curb property speculation'; last Friday) as buyers and sellers rely on them to negotiate a price. Recently, I received two valuations from the same bank for the same property which differed by $200,000, or 15 per cent of the asking price. What was more disconcerting was that I kept receiving assurances from agents and bank officers that they could offer valuations to match the asking price. Shouldn't property valuations be based on fundamentals, rather than sentiment?'



Singaporean-friendly

'Restrict properties selling for below $1.2 million to citizens.'

MR ALBERT TYE: 'I applaud the Government's decisive move although there may be a loophole ('New measures to curb property speculation'; last Friday). The current market is flushed with liquidity and there is nothing to stop the money from flowing into the property market if prices fall. Shouldn't some restriction be placed on foreigners who have deep pockets to take advantage of the situation? Perhaps the Government could restrict properties selling for below $1.5 million or even $1.2 million to citizens and perhaps permanent residents. Otherwise, the current antidote of measures may be rendered ineffective as well.'