Planning to invest in REITs? SGX got your back

Singapore Exchange (SGX) and the Singapore Institute of Surveyors and Valuers will jointly review valuation practices carried out by real estate valuers.

SGX
SGX Logo. Reuters

In a bid to safeguard investor interest, Singapore Exchange (SGX) along with the Singapore Institute of Surveyors and Valuers (SISV) will jointly review valuation practices carried out by real estate valuers.

Most of the investors rely on real estate valuations when making decisions on investments in REITs and business trusts.

Therefore, quality valuations are crucial to protect investors and maintain confidence in the REITs and business trust sector, SGX said in a statement on Thursday.

The move is likely to prop-up investor's interest in Singapore's property prices, which after dropping for 15 straight quarters are now showing some signs of recovery following government's cooling measures.

The city-state's home sales rose 35 percent in July, as more new projects were launched.

"We believe investors will benefit when valuation reports contain clearer information on methodology and key assumptions," said Michael Tang, Head of Listing Policy & Product Admission.

SGX and SISV are forming a committee to carry out the review.

The committee will be tasked to identify and recommend enhancements to the disclosure framework for real estate valuation and reporting in Singapore.

SGX
SGX Logo. Reuters

In a bid to safeguard investor interest, Singapore Exchange (SGX) along with the Singapore Institute of Surveyors and Valuers (SISV) will jointly review valuation practices carried out by real estate valuers.

Most of the investors rely on real estate valuations when making decisions on investments in REITs and business trusts.

Therefore, quality valuations are crucial to protect investors and maintain confidence in the REITs and business trust sector, SGX said in a statement on Thursday.

The move is likely to prop-up investor's interest in Singapore's property prices, which after dropping for 15 straight quarters are now showing some signs of recovery following government's cooling measures.

The city-state's home sales rose 35 percent in July, as more new projects were launched.

"We believe investors will benefit when valuation reports contain clearer information on methodology and key assumptions," said Michael Tang, Head of Listing Policy & Product Admission.

SGX and SISV are forming a committee to carry out the review.

The committee will be tasked to identify and recommend enhancements to the disclosure framework for real estate valuation and reporting in Singapore.

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