ArahMAC

Introduction The decline in the level of business activities, stock market prices, bond prices and overall asset prices implies that the impact of COVID-19 definitely has some impact on valuations conducted by valuation practitioners all over the world. In this article, we would explore some of the various areas where the pandemic would impact value and our best estimate of what the impact may be like. However, we do not possess a crystal ball of what the future holds and this should not be seen as a definitive pronouncement but rather a contribution to the industry’s conversation around this topic. Investment property valued by a valuer comprise the use of transaction volumes that are seldom available due to its indivisible nature and high price. Typically, valuers use historical valuations and comparable properties with values derived in previous periods that had different economic backdrops. As a result, property prices do not always react to the changes in expectations...