Table Of Content

Summary Of Report And Valuation 1

1.0 Introduction 2
1.1 Name of Client 2
1.2 Date of Inspection 2
1.3 Subject Property 2
1.4 Legal Description 2
1.5 Instruction of Value 2
1.6 Interest to be Valued 2
1.7 Date of Valuation 2
2.0 Title Details 3
3.0 Property details 4
3.1 Subject Property 4
3.2 Site Description 4
3.3 Building Description 4
3.4 Descriptions of Location and Neighbourhood 5
3.5 Accessibility 6
3.6 Occupancy Status 7
3.7 Services 7
3.8 Assessment 7
3.9 Planning Control 7
4.0 Basis of Valuation 7
5.0 Valuation Approach Adopted 8
6.0 Sales Evidence 9
6.1 Gross income/Rent 9
6.2 Calculation of Annual Property Expenses/Outgoings 9
6.3 Calculation of the Net Income/Rent 9
6.4 Calculation of the Investment Yield (Net) 9
6.5 Calculation of Years Purchase 9
6.6 Calculation of Capital Value 10
7.0 Appendices 11
7.1 Location Plan 11
7.2 Site Plan 11
7.3 Floor Plan 12
7.4 Internal & External Views Of Subject Property 12
Reference 14
Summary Of Report And Valuation
Financer : TAR Bank

Reference No. : STW/LWO/DWK/2-1212890 (STW/00362/15)

Subject Property : Title No. GRN 122100, Lot No. 41688

(formerly HSD 14689, PT No. 22929),
Mukim of Sitiawan, District of Manjung,
State of Perak.

Postal Address : No. 139, Lorong Seri Koh 3,

Taman Sri Koh 1,
32000 Sitiawan,
Perak Darul Ridzuan.

Type of Property : An extended intermediate single-storey semi-detached house

Tenure : Freehold

Registered Proprietors : Ling Swee Mee & Loh Seong Teck (½ share each)

Land Are : 228 square meters (about 2,454 square feet)

Purpose of Valuation : To determine the market value of landlord’s interest

Date of Valuation : 27th August 2021

Valuation Approach : Investment Method

Market Value : RM 396,000.00

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1.0 Introduction
The objective of this assignment is to estimate the market value/capital value of the residential
property which is located in Taman Sri Koh 1, Sitiawan, Perak for financing. The investment
method has been chosen to get the estimate of the market value of the subject property. This
assignment will also

1.1 Name of Client

Tan Say Keat

1.2 Date of Inspection

27th August 2021.

1.3 Subject Property

The subject property is an extended intermediate single-storey detached house, bearing postal
address, No. 139, Lorong Seri Koh 3, Taman Sri Koh 1, 32000 Sitiawan, Perak Darul Ridzuan.

1.4 Legal Description

GRN 122100, Lot 41688, Mukim Sitiawan, Daerah Manjung, Perak Darul Ridzuan.

1.5 Instruction of Value

The client has requested to prepare a report on the market value of the freehold interest in the
subject property to determine the market value of landlord’s interest

1.6 Interest to be Valued

The subject property is a freehold tenure.

1.7 Date of Valuation

The date of valuation on subject property is on 27th August 2021.

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2.0 Title Details
Particulars of Ownership

Brief particulars of the title as extracted from records at Pejabat Pengarah Tanah dan Galian in
Ipoh, Perak Darul Ridzuan on 27th August 2021 are as follows:-

Title No. : GRN 122100

Lot No. : 41688

Mukim : Sitiawan

District : Manjung

State : Perak

Land Area : 228 square metres

Tenure : Freehold

Category of Land Use : Bangunan

Express Condition : Kediaman - Sebuah Rumah Kediaman

Restrictions In Interest : Nil

Registered Proprietors : Ling Swee Mee & Loh Seong Teck (½ share each)

Encumbrances : Nil

Other Endorsements : Nil

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3.0 Property details
3.1 Site Description
The subject site is an intermediate semi detached residence, rectangular in shape, with a land
area of 228 sq m (approximately 2452 sq ft). It has a street frontage of approximately 10.668m in
width and 21.336m in depth on Lorong Seri Koh 3. The topography of this land is generally flat
and slightly higher than the level of the metalised street frontage. The site boundaries are usually
delineated by a combination of plastered brick walls and metal railings. The entrance to the site
is secured by a pair of metal gates and a sliding metal gate, with access to the building via a
concrete driveway.

3.2 Building Description

Description of Building Brief construction details and specifications of building are as follows:-

Construction : Reinforced concrete framework, reinforced concrete flooring,

plastered brick walls and tiled roof.

Ceilings : Plastered ceiling with cornices and ceiling boards.

Doors : Aluminium framed glass sliding, timber flush and PVC types.

Windows : Aluminium framed glass casements and adjustable or fixed glass

louvers

Floor Finishes : Ceramic tiles and cement rendered.

Other Improvements : 1. Security grilles are fitted to all the external doors and windows.
2. Built in concrete worktop to dry and wet kitchens.
3. The rear portion of the building has been extended to
accommodate a new wet kitchen.

Accommodation : Living, dining dry and wet kitchen, four bedrooms, a common
bathroom, a common water closet and car porch

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Approximate Gross : About 121.24 square meters(1,305 square feet)
Built up Area

Condition : Good

3.3 Descriptions of Location and Neighbourhood

For the purpose of identification, the approximate location of Taman Sri Koh 1, Sitiawan and the
subject property are shown marked and edged red in the attached Location and Site Plans,
Appendices A and B respectively.

The subject property bears direct frontage onto Lorong Seri Koh 3 in Taman Sri Koh 1, Sitiawan.
The latter is located about 2 kilometres to the south of the Sitiawan town.

Access to the subject property is easily available from Sitiawan town via Jalan Sitiawan - Lekir,
thence onto unnamed metalled road, Jalan Taman Suria and thence onto Lorong Seri Koh 3, the
metalled frontage road.

The property is located in a residential area, but is ideally located. Distances to the Guardian
Aeon is only about 6 km from the property and about 20 minutes drive. The distance from the
accommodation to the hospital is about 5 km and about 10 minutes drive. Nearby landmarks are
Sekolah Kebangsaan St. Francis, SMJK Nan Hwa and Preschool Tadika Cerdas Ceria that are
0.65km, 1km and 0.5km respectively.

Other properties in the immediate vicinity comprises predominantly single-storey and

double-storey terraced houses, single-storey and double-storey detached houses as well as single
storey semi-detached houses. Other housing schemes/areas nearby include Taman Hijau, Taman
Maju Indah, Taman Bintang, Taman Bunga Raya, Taman Delima and Taman Singa.

3.4 Accessibility
As shown in the market, the property is located at Taman Sri Koh 1, Sitiawan Perak. Taman Sri
Koh is about 3.9 km from Lotus’s Manjung. Lotus’s Manjung can be reached in 7 minutes by
car, conversely, it takes 3.9 km and about 7 minutes to drive from Lotus’s Manjung to Taman Sri
Koh. There is no bus service nearby, so access to Taman Sri Koh is by car, bicycle or on foot.

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However, there is a bus service from Taman Sri Koh to Lotus’s Manjung. Although there is a bus
service from Taman Sri Koh to Lotus’s Manjung, it is a shift bus and we have to walk ourselves
for about 38 minutes to reach Lotus’s Manjung on the way.

(Google Maps, 2021)

As shown in the market, the property is located at Taman Sri Koh 1, Sitiawan Perak. Taman Sri
Koh is about 1.9 km from Manjung Bowling Centre. On the contrary, it takes 1.9 km or
approximately 5 minutes to drive from Manjung Bowling Centre to Taman Sri Koh. There is no
bus service nearby, so you can only travel by car, bicycle or on foot.

(Google Maps, 2021)

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3.5 Occupancy Status
At the time of inspection, the subject property was occupied by the owner.

3.6 Services
Main water, electricity supply and telephone facilities are available to the subject property.
Public services such as street lighting, road maintenance and garbage disposal in the locality are
undertaken by Majlis Perbandaran Manjung. Public transport is available in the vicinity.

3.7 Assessment
The subject property is assessed for rates payable to Majlis Perbandaran Manjung.

3.8 Planning Control

The subject property is located in an approval scheme and designated for residential use as
expressly stipulated in the title document.

4.0 Basis of Valuation

A basis of value is a statement of the basic measurement assumptions for valuation. The basis of
valuation are Market Value.

The market value is the estimated amount of an asset or liability that the voluntary buyer and
voluntary seller should exchange after appropriate marketing in a fair transaction on the
valuation date, and both parties act with the knowledge, caution and without coercion.

Furthermore, Capital value is the price that would have been paid if a given asset or asset group
was purchased at the time of evaluation.Therefore, it does not matter how much was paid for an
asset 10 years ago. Its capital value is related to how much is paid for it today.In other words,
capital value is equal to market value.

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5.0 Valuation Approach Adopted
Valuation approach is a calculation method by which a valuer obtains a value opinion
after determining and weighing all relevant facts of the property. There are 3 common value
methods, comparison method, cost method and income method.

The income approach, sometimes called income capitalization method or investment method,
investment method is a property valuation method, which aims to evaluate the potential return of
investment through the continuous income of the property. Especially suitable for buying first
and then renting or certain types of commercial or residential property. The focus of the
investment method is to evaluate and estimate the value of the property and compare it with the
potential income it may generate.

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6.0 Sales Evidence
6.1 Gross income/Rent
Gross Floor Area- 2454 sq ft
Rental Value- RM 0.80 p sf

Gross Monthly Rental Gross Annual Income

2454 sq ft x RM 0.80 p sf RM 1,963.20 x 12
= RM 1,963.20 =RM 23,558.40

6.2 Calculation of Annual Property Expenses/Outgoings

Quit rent- RM89 Outgoings Expenses
Assessment Tax- RM472 Quit Rent + Assessment Tax + Fire Insurance + Repair
Fire Insurance- RM 250 RM 89 + (RM472 x 2) + RM 250 + RM 1000
Repair- RM 1000 =RM 2,283

6.3 Calculation of the Net Income/Rent

Net Annual Income
= Gross Annual Income - Outgoings Expenses
= RM 23,558.40 - RM2,283
= RM 21,275.40

6.4 Calculation of the Investment Yield (Net)

Market Value- RM 330,000

All Risk Yield (%)

𝐹𝑢𝑙𝑙 𝑅𝑒𝑛𝑡𝑎𝑙 𝑉𝑎𝑙𝑢𝑒 𝑃𝑒𝑟 𝐴𝑛𝑛𝑢𝑚 (𝑅𝑀)
= 𝑀𝑎𝑟𝑘𝑒𝑡 𝑉𝑎𝑙𝑢𝑒
x 100%
𝑅𝑀 21,275.40
= 𝑅𝑀 330,000
x 100%

= 6.45%

6.5 Calculation of Years Purchase

Freehold Interest Yield- 6.45%
Leasehold Interest Yield- 7.45%
Yield For Term- 5.45%
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6.6 Calculation of Capital Value
Term
Gross Rent Received Per Annum RM 23,558.40

(-) Less:
Annual Property Outgoings/Expenses RM 2,283
Net Annual Income RM 21,275.40
(x) YP Single Rate for 5 years @ 5.45% 4.276
RM 90,972.00

Reversion
Full Rental Value (Gross) RM 29,448

(-) Less:
Annual Property Outgoings/Expenses RM 2,650
Net Annual Income RM 26,798
(x) YP in-perp. @ 6.45% 15.50
(x) PV for 5 years @ 6.45% 0.732
RM 304,050.00
Capital Value RM 395,022.00
Say RM 396,000.00

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7.0 Appendices
7.1 Location Plan

Location Plan Of The Subject Property

7.2 Site Plan

Site Plan Of The Subject Property

11
7.3 Floor Plan

Floor Plan Of The Subject Property

7.4 Internal & External Views Of Subject Property

Internal Views

Front View Of The Subject Property Surrounding View Of The Subject Property

12
External Views

Living Room Wet Kitchen

Bedroom Dry Kitchen/Dining Area

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Reference
Designing Buildings 2021, Capital Value Definition, viewed on 20 August 2021.
<https://www.designingbuildings.co.uk/wiki/Capital_value>

Google Maps 2021, Figure Of Location Plan, viewed on 24 August 2021.

<https://www.google.com/maps/place/139,+Lorong+Seri+Koh+3,+Taman+Hijau,+32000+Sitiaw
an,+Perak/@4.2043124,100.6931246,17z/data=!3m1!4b1!4m5!3m4!1s0x31cb2c33c970064d:0x
2ba21072ef653f65!8m2!3d4.2043124!4d100.6953133>

Google Maps 2021, Figure Of Accessibility, viewed on 24 August 2021.

<https://www.google.com/maps/dir/139,+Lorong+Seri+Koh+3,+Taman+Hijau,+32000+Sitiawan
,+Perak/Lotus's+Manjung,+Jalan+Lumut,+Lumut,+Perak/@4.2090632,100.6755063,15z/data=!
3m1!4b1!4m14!4m13!1m5!1m1!1s0x31cb2c33c970064d:0x2ba21072ef653f65!2m2!1d100.695
3133!2d4.2043124!1m5!1m1!1s0x31cb2d324c8b6e6b:0x9df191898aaac515!2m2!1d100.672147
8!2d4.2083138!3e0>

Google Maps 2021, Figure Of Accessibility, viewed on 24 August 2021.

<https://www.google.com/maps/dir/139,+Lorong+Seri+Koh+3,+Taman+Hijau,+32000+Sitiawan
,+Perak/Perak,+Sitiawan,+Taman+Bunga+Raya,+Jalan+Bunga+Raya,+Manjung+Bowling+Cent
re/@4.2041988,100.6964608,17z/data=!3m1!4b1!4m14!4m13!1m5!1m1!1s0x31cb2c33c970064
d:0x2ba21072ef653f65!2m2!1d100.6953133!2d4.2043124!1m5!1m1!1s0x31cb2c2e66924185:0
x49457350871b6012!2m2!1d100.7010574!2d4.2065148!3e0>

IPPEH 2019, Malaysia Valuation Standards - SIXTH EDITION 2019, view on 20 August 2021.
<https://lppeh.gov.my/WP2016/wp-content/uploads/2020/12/MVS-BOARD.pdf>

JUPEM.Gov 2021, Figure Of Site Property, viewed on 22 August 2021.

<https://ebiz.jupem.gov.my/PetaInteraktif?no=445059&type=08lot&c=pl&jenis=Lot&produk=1
&neg=08>

Malaysia Housing Loan 2016, Market Value, Forced Sale Value & Reserve Price, viewed on 20
August 2021. <https://malaysiahousingloan.com/market-value-forced-sale-value-reserve-price/>

14
Property Guru 2019, Exploring The Investment Valuation For House Valuation, Viewed on 20
August 2021.
<https://www.propertyguru.com.my/property-guides/exploring-the-investment-method-for-house
-valuation-14617>

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