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FUTURE IMPACT OF SUSTAINABILITY IN VALUATIONS FOR BRUNEI DARUSSALAM

FUTURE IMPACT OF SUSTAINABILITY IN VALUATIONS FOR BRUNEI DARUSSALAM. Prepared By: Ms Siti Hairaney Shahri. SUSTAINABILITY & SUSTAINABLE DEVELOPMENT. Defined by the Royal Institution of Chartered Surveyors (RICS);

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FUTURE IMPACT OF SUSTAINABILITY IN VALUATIONS FOR BRUNEI DARUSSALAM

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  1. FUTURE IMPACT OF SUSTAINABILITY IN VALUATIONS FOR BRUNEI DARUSSALAM Prepared By: Ms Siti Hairaney Shahri

  2. SUSTAINABILITY & SUSTAINABLE DEVELOPMENT Defined by the Royal Institution of Chartered Surveyors (RICS); Sustainabilityis “an end state in which all human activities can be maintained within the existing capacity of the planet” Sustainable development is “the process of moving towards the goal” 1987 UN Brundtland Commission Report; Sustainable Development is to which such a development “meets the needs of the present without comprising the ability of future generations to meet their own needs”

  3. SUSTAINABILITY & SUSTAINABLE DEVELOPMENT David Lorenz (2006) explained sustainable development should ideally be cover; Ecological sustainability Economic sustainability Financial sustainability If these 3 factors exist then, the 4th factor which comprises of the institutional and governance structures are needed to make sustainability work

  4. PROPERTY VALUATION AS A PROFESSION IN BRUNEI DARUSSALAM In Brunei, the governing body for the administration of land is the Lands Department under the Ministry of Development. The Municipal Department also plays an important role now especially with the expansion of the capital of Brunei, Bandar Seri Begawan. Outside the government sector, there are only two property valuation companies that handle property matters in Brunei Darussalam with a registered and certified Valuer. The Lands Department introduced the “Chapter 189 – Land Code (Strata)” in December 2003 followed by the enactment of the “Valuers and Estate Agents Order 2009” in July 2009, where it is considered as a huge transition for the property market in Brunei Darussalam.

  5. PROPERTY VALUATION AS A PROFESSION IN BRUNEI DARUSSALAM There is no official registered body in Brunei for a Valuer to be professionally accredited such as the Royal Institution of Chartered Surveyors (RICS), the Singapore Institute of Surveyors and Valuers (SISV), the Institute of Surveyors Malaysia (ISM) and the Australian Property Insitute (API). However, if any Valuer is professionally affliated to these bodies, it is recognised for them to practice by the Government of Brunei Darussalam.

  6. REAL ESTATE VALUATION PRACTICE IN BRUNEI DARUSSALAM

  7. REAL ESTATE VALUATION PRACTICE IN BRUNEI DARUSSALAM In Brunei, property valuation is conducted by private Valuers for all property valuation instructions unless it is for government matters. However, all these values are usually monitored by the Valuations Section, Lands Department where all valuations done are submitted and entered into their data bank for consistency and matching the current property market situation.

  8. REAL ESTATE VALUATION PRACTICE IN BRUNEI DARUSSALAM The traditional five methods of valuations are commonly used and practised by the Valuers in Brunei due to the real estate market situation. The market in Brunei is not as active as its neighbouring ASEAN countries because of the limited availability of real estate and lack of potentiality for real estate development. The most active sector is the residential market for private use and followed by the commercial market which is the shop-houses for selling or leasing purposes.

  9. REAL ESTATE VALUATION PRACTICE IN BRUNEI DARUSSALAM The five methods of valuations used and practised by the Valuersare: Comparative / Comparables Method Contractor’s / Cost Method Residual Method Profits Method Investment Method

  10. SUSTAINABILITY ISSUES IN BRUNEI DARUSSALAM Green Building Initiative (GBI) launched in March 2012 by the Ministry of Development: To develop a structure that is "environmentally responsible and resource efficient" in all stages of its development: design, construction, operation, maintenance, renovation and demolition. The Ministry identified a "Green Roadmap", which will eventually lead to a National Green Building Certification Scheme for green buildings in Brunei Darussalam

  11. SUSTAINABILITY ISSUES IN BRUNEI DARUSSALAM Green Building Initiative (GBI) launched in March 2012 by the Ministry of Development: To develop a structure that is "environmentally responsible and resource efficient" in all stages of its development: design, construction, operation, maintenance, renovation and demolition. The Ministry identified a "Green Roadmap", which will eventually lead to a National Green Building Certification Scheme for green buildings in Brunei Darussalam

  12. SUSTAINABILITY ISSUES IN BRUNEI DARUSSALAM Clean Energy Initiatives are embedded in Brunei Darussalam’s 2035 Long Term Development Plans. Brunei Darussalam Centre for Strategic and Policy Studies (CSPS) has commissioned teams of consultant to conduct studies on “An Energy Efficiency and Conservation Plan or Roadmap for Negara Brunei Darussalam” and “Nationwide Feasibility Study on Alternative Energy Sources and to Formulate a Roadmap Towards Achieving Energy Security and Sustainability for Brunei Darussalam”

  13. SUSTAINABILITY ISSUES IN BRUNEI DARUSSALAM Clean Energy Initiatives Energy Efficiencies Electrical Energy Consumption Petroleum Product Quality Renewable Energies Fostering International Co-operation

  14. APPLYING SUSTAINABILITY IN REAL ESTATE VALUATIONS

  15. APPLYING SUSTAINABILITY IN REAL ESTATE VALUATIONS - Brunei’s Perspective: • Brunei has yet to implement the green and sustainability issues in the property and construction sector in order to follow up on the integration of sustainability in their valuation methods. • Currently, in ASEAN countries, there are no straightforward or automated formulae / valuation methods to account for sustainability issues to consider. • The extent and approach of incorporating sustainability in the valuation methods relies strongly on the regional and local market conditions, property type, conventions and development. However, Brunei’s real estate market is not as active as its neighbouring countries, such as Singapore, Malaysia and Thailand.

  16. APPLYING SUSTAINABILITY IN REAL ESTATE VALUATIONS - Brunei’s Perspective: • Both government and private sectors of Brunei’s real estate profession need to be aware and involved in the whole integration process of sustainability for Brunei’s property sector. • Valuers in Brunei have to come up or design ways of gathering, processing and showing how all the property-related data acquired in the preliminary process for valuations can be used or accounted for sustainability issues. • The integration of sustainability into the valuation process is also an issue of increasing valuation transparency: the client needs to understand the Valuer’s thought process.

  17. Thank You & Have A Pleasant Day!!

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