COMPARISON METHOD OF

VALUATION

Sr IDZWAN IZUDDIN SHAH HAJI ISHAK

Registered Valuer V1088
 Valuation Of Comparison Method
a) Valuation of the land without building
example : agriculture land, vacant land.

b) Valuation of the land and building

example : house, shophouse.
 a) Valuation Of The Land Without
Building
Analysis of each selected comparables. (at least 3
comparables)

Transaction Price RMxxxx

Divide by land area ?acre/hectare

= RMxxx per acre/per hectare

 a) Valuation Of The Land Without
Building
cont’d
RMxxx per acre/per
hectare

Adjustment
Time +-%
Location +- %
Cultivation +-%
Others +-% +-?% (total adjustment)
Adjusted Land Value RMxxx per acre/per
hectare
 a) Valuation Of The Land Without
Building

Valuation

Land Area (subject property)

x Adjusted land value (selected
comparable)
Market Value
 a) Valuation Of The Land Without
Building
Question 1
Subject Property
Lot 7891, Mukim Ijok District of Kuala Selangor
is a freehold land with an area of 7 hectares. It
is cultivated with matured palm oil of about
12 years of age. The physical terrain is
undulating and it is a second layer lot.
 a) Valuation Of The Land Without
Building
Comparable 1
• Lot 199, Mukim Ijok, Kuala Selangor
• Land Area – 7 hectares
• Location – second layer lot
• Date of Transaction – 3/11/2013
• Consideration – RM1,200,000
• Tenure – freehold
• Cultivation – 12 yrs old rubber
 a) Valuation Of The Land Without
Building
Comparable 2
• Lot 23, Mukim Ijok, Kuala Selangor
• Land Area – 5.7 hectares
• Location – third layer lot
• Date of Transaction – 3/6/2012
• Consideration – RM900,000
• Tenure – freehold
• Cultivation – old palm oil trees
 a) Valuation Of The Land Without
Building
Comparable 3
• Lot 995, Mukim Ijok, Kuala Selangor
• Land Area – 7.5 hectares
• Location – road frontage
• Date of Transaction – 3/12/2013
• Consideration – RM1,900,000
• Tenure – freehold
• Cultivation – 8 yrs old palm oil tree
a) Valuation Of The Land Without
Building
b) Valuation Of The Land And Building
Analysis of each selected comparables. (at least 3
comparables)
Transaction Price RMxxx
(-) Building Value
MFA x RM psm/psf
AFA x RM psm/psf
Building Cost RM xxx
(-) Depreciation (xxx) (RMxx)
Land Value RMxxx
b) Valuation Of The Land And Building
Land Value RMxxxx
Divide by land area ? sq m / sq ft

= RMxxx psm/psf
b) Valuation Of The Land And Building
cont’d
RMxxx psm/psf

Adjustment
Location +- %
Time +-%
Others +-% +-?% (total adjustment)
Adjusted Land Value RMxxx psm/psf
b) Valuation Of The Land And Building
Valuation

Land Value
Land Area (subject property) ? sm/sf
x Adjusted land value
(selected comparable) RM psm/psf
Land Value RMxxx
b) Valuation Of The Land And Building
Building Value
MFA x RM? psm/psf
AFA x RM? psm/psf
Building cost RM xxx
(-) Depreciation (xxx)
Building Value RMxxx
b) Valuation Of The Land And Building

Valuation

Land Value + Building Value = Market Value

Example: Comparison Table
 Tutorial
LAND AREA TRANSACTION SHARE PRICE PER UNIT
PRICE

7 hectares RM880,000 1/1 share ? per hectare

120 hectares RM12,000,000 ½ share ? per hectare

67.5 acres RM759,375 ¼ share ? per acre

45 acres RM108,000 4/100 share ? per acre

Example

2016
Example
Example

2018
Example
Example

2019
Example
Example

2020
Example