Valuation by Property Type

Property appraisal by each type of real estate varies according to the characteristics of each property type. To elaborate on this, the nature of use according to the target group of users, location, classification of tangible or intangible assets are all taken into account.


Infrastructure Valuation

    Infrastructure Valuation Infrastructure valuation can be in many ways for example service systems in large communities such as industrial estate, plumbing, sewage/wastewater management, waste disposal system, electrical service system, rail transportation system, expressway/highway system, pipeline transportation system, telecommunication system, shipping & air transportation system which includes port, airport and etc. Therefore, for this type of property valuation, we will have to consider the costs of construction combined with the land where the infrastructure is located which may be acquired in the form of complete ownership or leasehold rights. On the other hand, the factor to be considered is the potential in terms of generating income from the public utility services in which the operating expenses have already been deducted.

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Special System Valuation

Special System Valuation These following special systems may look into for example a special system installed in the specialized building such as theaters which is installed with automatic sound and light scene, intelligent automatic car parking system, power generation systems from solar cells or ‘Wind Farm’, and factory machinery installation system. All these are following are special systems that require consideration according to the purpose and objective of valuation which can be applying for the loan, developing the system or account improvement for those that have already been implemented. Last but not least, note that special system valuation may require an expert for inspecting and providing comments together with the evidence from documents and contract of employment.

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Project Investment Estimation

Project Investment Estimation      Project investment cost valuation is basically appraising the investment cost according to a plan that is about to be constructed. As the property valuers, there is a difference between a plan valuation and the term ‘estimation of engineering construction cost’ that is the valuers will not disassemble the parts from the plan but instead, the valuers will verify the cost from bill of quantities (BOQ) as well as the plan that receive from the client in order to inspect if the information is accurate and reliable. However, it can be adjusted as appropriate based on the opinion of the valuers on the issues of task list, amount of work, the price per unit, material/equipment, and wage/salary that can be inspected from the plan. Usually, the assembly list in the construction will be separated into structural work, architectural work, sanitary electric system work, and other special system work that must be specific. However, please note that if the plan is not complete, the project investment cost will not be able to be appraised. Moreover, an estimated budget approval in writing cannot proceed either.

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Interior & Decorate Valuation

Interior & Decorate Valuation There are 2 most common valuation purposes for using decoration and improvement appraisal services in Thailand. First, when the accounts are recorded and updated which will be an improvement that has been done and used for example in the rental area which we should know the building condition before renovating and also know the list of the improvements or referring to the construction contract to be able to distinguish the types of work that has been done by using Depreciated Replacement Cost (DRC) as a method of determining the value. Second, an improvement of decoration that has not been conducted a valuation according to a plan yet as well the assembly list in order to know the renovation budget which will be applied to request for a loan for construction of project development or renovation. By doing this, the client must have the details of the plan such as built-in or loose furniture, assembly list with the material specification that can be conducted a market comparison, together with the Bill of Quantities (BOQ). Please note that having only a Concept Design Plan will not be enough to conduct the valuation.

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Fuel Station Valuation

Fuel Station Valuation In Thailand, currently, there are various different kinds of business models when it comes to a gas or petrol station compared to what we used to have in the past. These 3 major groups are landlord, gas station management party and the petroleum industry. Therefore, it is important to always consider which party the appraisal is for. A document of right is required in order to prove ownership so that the most suitable valuation method can be selected and applied. Normally, we will consider the cost of construction as well as incomes that are generated from a business operation which can be from many sources, for example, rental fees for land, oil or retail business etc. The documents that will be required in this valuation are concerned contracts together with plan documents.

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Payment Evaluation

Payment Evaluation For customers requesting loans for project development or construction, the disbursement can be referred to the first valuation report. The key points of the inspection are the confirmation that the building is located on the collateral land which the client will submit as a built plan of the building location that has been approved as stated in the deed. Second, to see if there is a change in the size of the building. Lastly, to see if there is any change regarding the material and equipment as these factors will affect the collateral Value. The required documents in construction payment inspection are the building plan which shows the layout of the building, and the report from the engineer who supervises the construction.

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Abandon Project Valuation

Abandon Project Valuation In Thailand, there are many construction projects that have already been constructed but failed to complete. These are abandoned structures, abandoned properties or vacant buildings. These happen as there might be a delay in the project. However, in order to recontinue the project, there will be a repetition start-up fee once again. For example, the abandoned housing estate project for both low-rise projects and high-rise condominiums but in some cases, there are various kinds of structures such as hotels, apartments or even shopping malls. Sometimes, the properties and structures have been abandoned for a very long time which leads to an appropriate property inspection that must be conducted to know if they are still able to be used. As for the valuation method, besides appraising cost based on the current condition, the Residual or Hypothesis Method must also be conducted. The results of these 2 methods will then be compared to determine the most plausibility and appropriate value. The documents that are required in this valuation are a construction permit, plan, Bill of Quantities (BOQ) and the utilization of the buildings when it is completed. Sometimes the alternative use would be applied upon special assumption from the client who wants to know, for example, the construction permit was originally an apartment. However, the client wants to know the project feasibility to change the utilization to be a hotel which can be conducted.

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Condominium Unit Valuation

Condominium Unit Valuation      Requesting for the appraised price of the condominium? Checking the appraisal price of the condominium? What is the appraisal price of the condominium’s maintenance fee? Price of the second-handed condominium or appraise your condominium? Know more about condominium valuation in Thailand? The condominium can be divided into 3 types which are for residential, office space or commercial use. When speaking about the condominium, everyone will think about subunits of rooms located inside of the vertical building, registered as subunits and the document of right will be issued as condominium deed or AOR CHOR. 2, which can be purchased with full ownership. The condominium’s unit can be appraised by using these 3 valuation methods which are first, ‘Market Approach’ by comparing the selling price with the other units within the same or different project development. The second method is the ‘Cost Approach’ to calculate the current price of land which is where the project locates on, average equal to the ratio of the common property of the appraised condominium together with the average price of a building based on the combination of the apartment area will be the cost of the unit. The last valuation method is the ‘Income Approach’ in which we are able to determine the rental fees of condominium units within the same or even different project since the renting of the condominium is very diverse which makes it comparable. On the other hand, the rate of return on condominium investment is a clear market figure. Therefore, the income approach can be applied. In case there are many units, the factors that might have to be considered are the purpose of the valuation reports. For some trading purposes, may consider the need for buying and selling the whole port similar to ‘Portfolio Valuation’ which is an agreement of valuation based on a specific purpose case by case.

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High rise Condominium Project Valuation

High rise Condominium Project Valuation Condominium Project Valuation or Appraisal in Thailand is divided into 2 cases. First, to know the project development costs and second, to know the unit price in order to help and support the Post Finance loans for the clients. First case, it will be the valuation during the construction which is also divided into 2 parts: public areas or utilities and sales area or sales unit. In addition, the ‘Cost Approach’ will be applied when it comes to the valuation method Second case is the Post Finance or Refinance of Debt when all units are almost or sold out. The appraisal will be conducted based on the market price for individual units of each type for post financing purposes. The documents required in this valuation are utility plan, sales unit plan and Bill of Quantities (BOQ) in the common area.

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