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The

VGP Express SingaporeInstituteofSurveyorsandValuers

I S S U E 6 - O C T O B E R 2 0 1 6

27th VGP Council 2015/2017

President DrLimLanYuan

1stVicePresident TanChoiHeng

2ndVicePresident JohnTeo

HonSecretary GohHengHoon

HonTreasurer IanLoh

AsstHonSecretary RichardTay

CouncilMembers

IvyTan GeorgeLow

PngPohSoon EricChan

TanKengChiam JosephYee

ValenieChwee SohChorYin

OngShujuan

TheFastChangingProfessionalLandscapeoftheRealEstateIndustryInthisnewagemarket,itisimportantforprofessionalsintherealestateindustrytobequicktoadapttoamultitudeofnewbusinesscompetition. With enhanced new skills and knowledge, estateagenciesandrealestatecompanieswouldbeinabetterpositiontocompete in this ever evolving business and economic landscape.Even with the challenging market conditions, there are alwaysareasofnewopportunitiesandpotential.

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

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The VGP has been organizing various conferences and seminars to provide members and realestatepractitionerswithaquickupdateand informationonthemarket. Ineachof thesesharingand learningsessions, theVGPhopesthat insomewaysthiswouldhelpmemberstocontinuetothrive amidst a diversity of newmarket challenges. Salespersons andEstate Agents learned thefinerpointsofhandlingtoughsalesmarketsandchallengingenvironmentwhichwould formthebusinessplatformwheremanywillfaceinthecomingyears.ForourValuationMembersWiththeadventandincreasingdisruptioncausedbytechnology, valuation today is no longerpredominantly thatattributingto realestate. Inourrecent Valuation Conference, members heard fromthe welcome speech of the President that thevaluationindustryhasquietlybeenundergoingsomeformof “évolution”with thegrowingdominancebybanks, financial institutions, insurance companies,special purpose vehicles, REITs and other assetmanagers,trustsfunds,etcwhichareknowntoholdmanytypesofassetsotherthanrealestate.Thishasled to the increasing importance in thevaluationofthe financial markets entailing the valuation ofIntellectual Properties, Business Valuation and Valuation of Financial Reporting. Valuationpractitionersandtrainersintheregionandglobalmarketshavebeengraduallyacquiringtheskillandknowledgetoconductthesevariedvaluationmodels.Ourlocalvaluerswhoarefamiliarwiththe valuation of Real Estatewould be seen to be inadequatewithout updating themselveswiththesenewskillsandappreciatingtheinevitableinfluencebytheInternationalValuationStandards,andthatofTheFinancialReportingStandards.Whetherthelocalmarketisreadytoembracethisinflowofnewvaluationmethodologies,thestagehassetforthisinterfaceofchangeintheworldofvaluationpractice.TheVGPwouldalsobehostingtheinauguralProperty,StrataandFacilityManagementConferenceon17November2016.WhiletheProperty,StrataandFacilityManagementmayformthesmallestclusteramongthethree–Valuation,EstateAgencyandPropertyandFacility,itisbynomeanstheleast importance.Aswith theaidof technologyandmachines,weare constructingbigger, fasterandbetterbuildingstoliveandworkin.Likeagencyandvaluationworks, technologyhasalsoencroached intoourhomeandworkplace.Todaywe often heardof smart buildingsand intelligent officebuildings andof lateeven that ofsmartandsustainablelivingenvironment.This isofcoursegood.Howevertoensurethatweareable to continuously reside in these smartbuildings, the importanceofmaintenance toensureasafe and properly maintained home environment is the role that entails the expertise ofpractitionersofpropertyandfacilitymanagers.Withthedevelopmentofincreasingsophisticatedandmodernhomes,theirexpertiseandknowledgewouldalsoneedtobeupdatedandkeepinlinewiththesenewagefacilitieswherebuildingsarenolongeryourbrickandmortar.ThisConferenceistimelyandtheVGPwouldliketoencouragepropertyandfacilitymanagerstoattendaswellasotherrealestatepractitionerswhoareinterestedintheworldofpropertyandfacilitymanagementofthebuildingsthatweconstruct.

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SingaporeRealtorsConference20163August2016The VGP successfully hosted its 3rd annual Singapore RealtorsConference2016.TheConferencewaswellattendedbypropertyagents as well as staff from the Council for Estate AgenciesincludingtheirDEDMrChanMunKit.ItwasaveryilluminatingConference where speakers shared very current and relevanttopics suchasonhow theASEANEconomicCommunity,TransPacific Partnership andOneBeltOneRoad policiesmay shapethe real estate industry in Singapore and the region aswell asthat on Standard Operating Procedures for Estate Agencies,amongotherinterestingtopics.

TheVGP also took the opportunityduring theopening sessionof the Conference to launch theSISV Private Residential Price Index for the Mass Market (SISV Index). The SISV Index is aninformationtoolthatisbasedonthevolumeoftransactions.Ittrackspricemovementinthefourcoresuburbanregionsgivingusersadirectsenseoftheaveragetransactedpricesineachquarter.ThustheIndexprovidespotentialhomebuyersandsellerswithaneasy-to-understandmeasureofimmediate price movements. The SISV Index is compiled on a quarterly basis and will bepublishedinquarterlyPrivateResidentialMarketResearchReportproducedbytheInstitute.ThereportispostedontheSISVServiceswebsiteasanaddedfeatureforsubscribers.

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SISVValuationConference20167thOctober2016

The SISV Valuation Conference 2016was well attendedby some 180 participants including many valuers,industrypractitionersandotherrealestateprofessionalsfrom developers, banks, REITs, assets managers,investorsaswell asauthorities likeHDB,URA, IRASandLTA. The Theme for this year’s Conference is,“Challenges and Opportunities in Valuation”. TheValuationandrealestateindustryhasseenmanychangesrecently.ThiscanbeattributedtotheincreasingdiversityofthebusinessservicessectorsledbythetrendtowardsinternationalizationandthesometimesdisruptiveeffectsoftechnologywhichValuerswillneedtoharnessandrideupon.ThisConferenceservesasaplatformforValuerstokeepintouchwiththelatesthappeningsinthe industryaswellasagatheringwhereRealEstateprofessionalscandialogueandexchangeviews.

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AmongthekeyareasofconcernwhichDr.LimLanYuan,President,VGP, SISV have identified are, “The SISV Valuation Standards andPractice Guidelines essentially set the rules whereby our valuershaveto conformwhen issuingvaluationreports.TheInternationalValuationStandards(IVS)andtheInternationalFinancialReportingStandards(IFRS),whichhaveoftenbeenovershadowedbythelocalValuation Standards due to the localized nature of the propertymarket in Singapore, are increasinglynecessary forourvaluers toappreciate. Thus the likes of Business Valuation, Valuation ofFinancial Reporting and Valuation of Intellectual Properties aretodayas crucial as Valuation of RealEstateand that for PlantandMachinery”.To provide not just a local perspective and recognizing the trendtowards internationalization,wehavealsoinvited3speakers fromHongKongtosharewithustheirin-depthknowledgeandexpertiseon theBusinessofFinancial Instruments,NewFinancialReportingStandards and Challenges and Business Valuation from CorporatePerspectives.TheValuationandGeneralPracticeisalsopleasedtotakethisopportunitytoannouncetheSISVPracticeGuideonFinancialReportingStandards113(FRS113).Thiswillbeanewsectionaddedonto the existing SISV Valuation Standards and Practice Guidelines. This new Guideline (1October2016)willprovideallmemberswithabetterunderstandingof the localrequirementsundertheInternationalFinancialReportingStandards(IFRS)13.AllSISVmembershavetobeconversantandcompliantwith this setof StandardsandPracticeGuidelineswhenconductingValuationforFinancialReporting.

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FIABCI DECEMBER BUSINESS MEETING NICE,FRANCESISV(VGP):10CPDCreditHours Sustainability,4thindustrialrevolution,localandinternationalmanagement,satisfactionclosertoourcustomersworldwide.Thesearetheissuesandchallengesthatourprofessionsarefacingonthe21stcentury.OurDecemberBusinessMeetingswillseektoreflectwithyouthepracticesandadequatetoolsforthebenefitofourbusinessandtherenownedFIABCIInternational.

FIABCI (International Real Estate Federation) FIABCI PRIX D’EXCELLENCE AWARDS 2016 & SINGAPORE PROPERTY AWARDS 2016 DINNER Prix d'ExcellenceAward is one of FIABCI’s highlights. The FIABCI Prix d'Excellence recognisesprojectsthatdisplaydistinctioninvariousaspectsofthedevelopment.Entrantsareevaluatedonthe following criteria:overall concept; architectureand design; development andconstruction;communitybenefitandenvironmentalimpact;andfinancialandmarketing.ToensurethattopqualityprojectsaresubmittedtoparticipateintheFIABCIPrixd’Excellencetopromote Singapore’s excellence in design and architecture, FIABCI Singapore has launched itsInauguralSingaporePropertyAwardsinJune2011.Thisyear,theFIABCISingaporeChapterwillbehostingtheSingaporePropertyAwardsDinneron21stOctober2016attheRegentSingapore.Twelvepropertyprojects have won awards in various categories, namely Master Plan,SustainableDevelopment, IndustrialandResidential (HighRise/MidRise/LowRise). Winners will qualify to submit their projects for the FIABCI PrixD’ExcellenceAwardstobeheldinFIABCIWorldCongressinMay2017.

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The 28th Pan Pacific Congress (PPC) of Real Estate Appraisers, Valuers andCounselorswassuccessfullyheldinKyoto,Japanfrom26–29September2016.Hosted by the JapanAssociation ofReal EstateAppraisers andwith the theme“TowardExpanding theRole andExpertiseof theValuationProfession inEver-Changing Global Economy”, theCongresswaswell attended by close to700participants includingsome200participants fromoverseascountriessuch

as the United States, Australia, New Zealand, Vietnam, Republic of China (Taiwan), Indonesia,Korea,Mexico,Philippines,Mongolia,Honolulu,Malaysia,India,ChinaandSingapore.The Congress was opened with the Chief Delegates of each of the member countries giving akeynotespeechandtheChiefDelegatefromSingaporeisDrLimLanYuan,President(VGP)SISV.At theCongress, variousveteran speakerswere heardsharingtheirviewsontheRoleofAppraisersinrapidlychangingglobalfinancialmarketandValuationrelatedto International Financial Reporting Standards (IFRS)and International Valuation Standards (IVS) whilespeakers for the technicalpapersprovided interestinginsights on topics like LandAppraisalwithoutMarketData, Valuation of Floor Area Ratio by ReflectingNonlinear & Spatial Effect and Healthcare Assets inJapan.Fortheclosingceremony,theflagofthePPCwashandedovertotherepresentativeofMexicoandthey would be hosting the 29th PPC in Tijuana from 8 to 13 October 2018. Following Mexico,Malaysia is expected to be the next member country to host the 30th PPC. Participants alsowitnessedandwelcomed theCountry of Philippineswho is rejoiningPPC aftera lapseofmanyyears.

SISV(VGP):10CPDCreditHoursThe Korea Appraisal Board will be hosting the 8th Congress ofWorld Association of ValuationOrganizations(WAVO).QualityandEfficiencyinvaluationhavebecomevitalelementsforstabletaxation and real estate market. Thus more professional, legitimate and accurate valuation isrequired forcontinuousdevelopment in the field.Thethemefor theCongress is“EnhancingtheQualityandEfficiency inValuation.Topics tobecovered include “EstablishingPreciseValuationStandard”,“BuildingValuationMonitoringSystem”and“ArtificialIntelligence&Valuation”.WAVOlookforwardtoyourparticipationandhopeyou’llhaveanexcellenttimeinKorea.

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InauguralProperty,StrataAndFacilityManagementConference201617 November 2016 (Thursday) – York Hotel, 21 Mount Elizabeth Singapore 228516 Theme–CriticalIssuesinMaintenanceandManagementSISV(VGP):6CPDCreditHours

ThisinauguralSISVconferencefocusesonsuccessfulpropertyandfacilitymanagement.Itdealswithemerging issuesrelatingtoboththemanagementandadministrativeaspectaswellas thetechnicalandoperationalproblemsinbuildingsandfacilities.Themorningsessionswilldiscussmatters relating to human resource management, implementation of work, health, safetyregulationsandguidelines,performance-basedcleaningcontractsandconflictmanagement.Theafternoonsessionswilldiscussmattersrelatingto thetechnicalandoperationalaspectssuchaslandscapeandpestmanagement,buildingmaintenance,andmaintenanceofthebuildingservices.The purpose is to provide a better understanding of the maintenance problems and help toimprovetheoperationalperformanceinpropertymanagement.

SupportedBy

VGPCPDCOURSESCertificateCourseinMarketingofIndustrialProperties(CEASN:C2L3S0495)(Total5days–3hourseachday+Assessment)Dates:14,16,21,24,28November&2December2016EndorsedbyCouncilforEstateAgencies–2ndBatchCommencingRegistration6CEACoreCPDcreditsawardedunderCoreCategory2/Level3approvedbyCEAforthemandatoryCPDScheme Approved for SkillsFuture Credit and also WDA Funding under the Broad-based Scheme SISV (VGP) : 10 CPD Credit Hours ThisCertificateCourseistoequipestateagents/salespersonsonthefundamentalsinmarketingindustrialpropertiesinSingapore.AsJTCandHDBarethetwolargestdevelopersandmanagersofindustrialpropertiesinSingapore,itisnecessarythatestateagents/salespersonsbeinformedofthepoliciesandregulationsofJTCandHDBwithregardtotheuseandoccupationofindustrialproperties.Inaddition,estateagents/salespersonsshouldbeacquaintedwiththerelevantportions of theguidesand regulations introducedby CEAandother relevantauthorities that relate to themarketingofindustrialproperties.Pleaselookoutinourwebsiteforthenewlaunchdateofthiscourse.

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KEYCIRCULARS/NEWSISSUEDBYAUTHORITIESValuationandGeneralPracticeCirculars

10August2016 GoodValuationPractice–SigningOffValuationReport/SiteInspectionToBeCarriedOutForAllRevaluation

11August2016 GoodValuationPractice–ProfessionalCompetenceandPractice

BuildingandConstructionAuthority

8July2016 BCAannouncesdetailsoftightenedliftmaintenanceregimeandnewescalatorsafetyregulations

27July2016 BCAtoexpandAccessibilityMandatoryRequirementsforExistingBuildings

10August2016 SafetyrequirementswhenaddingGreenery,SolarPanelsandotherFeaturestoBuildingRooftopsunderthe

BuildingControlAct

12August2016 BCA,JTCandNCCSjointlylaunchSingapore’sfirstclimate-focusedhackathonforgreensolutions

7September2016 BCA’srevisedGreenMarkforresidentialbuildingsaimedatenablingresidentstoadoptmoresustainablelifestyle

20September2016 BCAsetsupanationalrepositoryofgreentechnologyforbuildings

CouncilForEstateAgencies

2September2016 PreventionofMoneyLaunderingandCounteringtheFinancingofTerrorism–Guidanceonsubmissionof

suspicioustransactionreports(STRs)relatedtothePanamaPapers

Housing&DevelopmentBoard

1July2016 FlashEstimateof2ndQuarter2016ResalePriceIndex

22July2016 Releaseof2ndQuarter2016PublicHousingData

3August2016 NewSiteidentifiedforSelectiveEnBlocRedevelopmentSchemeinWestCoast

17August2016 HDBlaunches4,841flatsinAugust2016BTOExercise

29August2016 Morethan1,300shopstobenefitfromHDB’senhancedRevitalisationofShops(ROS)Scheme

8September2016 UnveilingtheMasterplanforTengah:AtHomeWithNature

19September2016 LiftEnhancementProgramme(LEP)tosupportcostsofmodernizationofliftsinHDBestates

MonetaryAuthorityofSingapore

1Septemebr2016 TDSRRulesonRefinancingFine-tuned

SingaporeLandAuthority

31August2016 SLAlaunchesnewonlineservice,MyProperty,toofferfreeaccesstotitleinformationforpropertyowners

4September2016 SLAlaunchesOneEmaptofurtherGeoSpatialeducation

SingaporeCivilDefenceForce

1July2016 URAreleasesflashestimateof2ndQuarter2016privateresidentialpropertypriceindex

UrbanRedevelopmentAuthority

1July2016 URAreleasesflashestimateof2ndQuarter2016privateresidentialpropertypriceindex

22July2016 Releasesof2ndQuarter2016realestatestatistics

12Aug2016 ExtensionofValidityPeriodforCircularonNewDevelopmentApplicationsforHotel,BoardingHouseand

Backpacker’sHostelUses

31August2016 RevisionofDevelopmentChargeRate

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SISVAnnualDinnerandDance2016–ManyBeatsOneRhythmTheSISVAnnualDinner2016whichwasheld on29 July,wasanight filledwith fun, songs andlaughter.ThisyeartheInstitutealsohadthepleasureofinvitingMrDesmondLee(SeniorMinisterofStateforHomeAffairsandNationalDevelopment).Itwasafantasticnightformembers,guestsandstaffatSISVtominglewithoneanotherinacoolandrelaxingsurrounding.

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Secretariat: TeoLiKim JanetHan NeoPingPing

SingaporeInstituteofSurveyorsandValuers

110MiddleRoad#09-00ChiatHongBuildingSingapore188968Tel:+6562223030Fax:+6562252453Website:www.sisv.org.sg

The VGP Express is a quarterly publication of the Singapore Institute of Surveyors and Valuers. Distribution is restricted tomembersandthoseorganizationsandinstitutionsofhigherlearningassociatedwiththeInstitute.

On 17 September 2015, CEA issued a Practice Circular (PC) 04-15 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 04-15 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 06-16 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.