Khaireen binti Mohd Riduan

INSTITUT PENILAIAN NEGARA

THE INDUSTRIAL TRAINING PROJECT
CERTIFICATE IN REAL ESTATE VALUATION

ACADEMIC SESSION 2018/2019

STUDENT’S NAME : KHAIREEN BINTI MOHD RIDUAN

STUDENT’S CARD NUMBER : SPHT-15-18-004

ID NUMBER : 000910-14-1292

INSPEN SUPERVISOR : NORZAILA BINTI ABDUL RASHID

FIRM SUPERVISOR : NOR SHARINA BINTI YAHYA

TABLE OF CONTENTS PAGES
3
NO. CONTENTS 4-5
6-8
I Appreciation & Introduction
9-10
II PART A (Detail of the Organization and Work Process)
11
1.0 Company Background 12
13-15
1.1 Firm Structure 16
17
1.2 Process of Valuation Work 18

 Before Valuation Work Process 19-30
 During Valuation Work Process
 After Valuation Work Process 2

III PART B (Valuation Report)

1.3 Introduction

1.4 Date of Inspection

1.5 Particulars of title

1.6 Details of Property

1.7 Basis of Valuation

1.8 Method of Valuation

1.9 Analysis Data

1.10 Opinion

1.11 Conclusion

Appendices
 Calculation
 Location Plan
 Site Plan
 Floor Plan
 Photographs

APPRECIATION

I am grateful that I have finished the industrial training project well. First, I would like to
thank Firdaus & Associates Property Professionals, Kuala Lumpur for providing me this
opportunity to undergo my industrial training. I would also like to thank the Senior Valuation
Executive, Mrs. Nor Sharina Yahya as my supervisor for guide and taught me over three months
I worked here. In addition, thank you to the Head of Valuation Department and to all staff who
provided the valuation knowledge and encourage me to learn day by day. Lastly, thank you to my
INSPEN supervisor, Mrs. Norzaila Bt Abdul Rashid for her suggestions, comments and guidance
helping me improve my knowledge in property valuation. I appreciate her contributions of time
and ideas to make my work productive and stimulating. I hope this assignment will be accepted so
that I can continue my study session for the last semester.

INTRODUCTION

Industrial training is a subject that required for every INSPEN’s student during the fourth
semester. The purpose of industrial training is to give early exposure to students before entering
the world of work. Students will practice the knowledge that has been gained when they start their
work later in future. Industrial training also can evaluate the ability of students to make sure they
are prepared well and ready to entering the world of work.

In addition, industrial training can build self-confidence for students to face the challenges.
As we know, every job has its challenges. So if students already have self-confidence, they can do
a good job despite facing many challenges. I chose Firdaus & Associates Property Professionals,
Kuala Lumpur as my industrial training spot. My industrial training start 25th November 2019 until
28th February 2020.

3

PART A – DETAIL OF ORGANIZATION AND WORK PROCESS

1.0 COMPANY BACKGROUNG

Firdaus & Associates Property Professionals is a medium sized consultancy firm

which offers a full range of property consulting services which include property

valuation, real estate agency, property management, market research, retail leasing

and property consultancy. They work with their clients to significantly improve

property knowledge by applying the right mix of consultancy and professionals

services. Firm services are as follows:-

Property Management Real Estate Agency
 Residential Property – Property management  Project Marketing – Full scale services

solutions for stratified properties under Joint from initial inception to closing of

Management Committee, Management sales on behalf of developer clients.

Corporation and Residents Association.

 Commercial Property – Partner in maximizing  Luxury Residential – Servicing clients

returns on investment through efficient in providing high end residential

performance and good maintenance accommodation with additional

governance. personalized and concierge services

 Portfolio Management – managing a group of and absentee landlord property

properties under one client involving capital management.
and finance management, land and building  Secondary Market – Sub-sale and to

operations and building contract and material let completed properties by the team

management. of Real Estate Negotiators

4

Market Research Property Valuation
 Customized market research and  Residential, commercial, industrial,

feasibility study reports with extensive agricultural, plants and machineries as
database on all types of properties, the well as specialized properties.
trends and values.
 Provide accurate and latest trends  Individual and Corporate clients for a
related to demand, supply, potential variety of purposes including
growth opportunities, competitive Financing, Disposal, Acquisition,
pricing. Auction, Compulsory
 Assist clients in understanding of the Purchase/Acquisition, Insurance,
market, identifying unique selling Rating & Taxation, Corporate,
propositions in development Mergers & Acquisitions, Property
components and demand forecasts Portfolio.

 Adheres to the Malaysian Valuation
Standards (MVS), International
Valuation Standards (IVS), Royal
Institution of Chartered Surveyors Red
Book, Malaysian Financial Reporting
Standards (MFRS), Securities
Commission and Bank Negara
Guidelines.

5

1.1 FIRM STRUCTURE
BOARD OF DIRECTORS

FOUNDER AND MANAGING DIRECTOR
SR FIRDAUS MUSA

EXECUTIVE DIRECTOR ASSOCIATE DIRECTOR ASSOCIATE DIRECTOR
SR NIK ALIM AMIRAH SR SHAMSUL ANUAR SR NORYATI ABD WAHAB
NIK AB RAHMAN SHAMSUDIN

ASSOCIATE DIRECTOR ASSOCIATE DIRECTOR ASSOCIATE DIRECTOR
SR JAMAL AFENDI SR NAZRI HARON SR MASELFA MASDO6N

ORGANIZATION CHART

SR FIRDAUS BIN MUSA
Founder and Managing Director
Determining and implementing
policies and making decisions as

a Director of Firdaus &
Associates Property Professionals

SR NORYATI WAHAB SR NIK ALIM AMIRAH SR JAMAL AFENDI
Associate Director Executive Director Associate Director

She was the Association He was responsible for He was the Association
of Valuers in charge of retail and corporate of Valuers in charge of
Setia Alam Branch office
valuation work ranging Ipoh Branch office
SR SHAMSUL ANUAR from typical residential
Associate Director properties to purpose built SR NAZRI HARON
buildings in Kuala Lumpur Associate Director
He was the Association of
Valuers in charge of involving mainly for He was the Association
finance purposes of Valuers in charge of
Petaling Jaya Branch office Penang Branch office
SR MASELFA
MASDON

Associate Director

She was the Association of
Valuers in charge of Head

Office in Wangsa Maju

MOHD RINALDI SHAH
Head of Valuation

In charge of all valuation
work within Firdaus &
Associates Property
Professionals

7

ZAINATUL ASHIQIN RAHAH BIN OTHMAN OTHMAN HJ MOHAMMAD
Assistant Head of Department Head of Real Estate Agency Head of Property Management

Helps Head of Valuation in all Focused in real estate In charge of the residential
valuation work agency leasing and selling of property management portfolio
liaising with the JMBs, MCs and
Assistant Manager properties ranging from RAs and the smooth running of
-AINUL AZA residential, commercial and
the residential property
-NORLIYANA ZULPI office management operations
-NOR SHARINA YAHYA
MUHD NUR FIQKRIE Assistant Manager
Valuer Officer who will Head of Real Estate Agency -RONNITA MHD SHAM
helps Head of Valuation in
all project in valuation and Corporate -MOHD MARNIZAM
Focused in real estate
guide the other valuers agency leasing and selling of Maintaining an overall
management style that
Senior Valuation Executive properties
-HALWA AMALINA follows in Property
MOHD HAMIRUL AZAD Management best practices
-NURUL SHAZLEEANA Head of Real Estate Agency
-MUHAMMAD AKMAL ROZILA BT KOSIM
Commercial Admin Executive
Valuation Executive Focused in real estate
RAHMAT FARID agency leasing and selling of Responsible for the daily
MUHAMMAD NOORAZIZ properties ranging from administrative activities of
HAFFISZAL AMRI commercial and office the executive in Property
TANG WEI THYN
MAHADI BIN AMAN Management
Head of Project Marketing
24 SITES
He oversees the project
marketing, advisory and
secondary market teams

200
REAL ESTATE
NEGOTIATORS

8

1.2 PROCESS OF VALUATION WORK

Before Valuation Work Process

i. Registration from admin using the Valuation Management System (VMS)
ii. The case that has been registered will be send to Mr. Rinaldi, Head of Valuation

Department to select the valuer in charge.
iii. The valuer need to contact clients to confirm fees and the date of appointment.
iv. Valuer must prepare camera, measurement tape, pencil, A4 board with paper before

inspection.
v. Valuer have to print out the sale evidence from system. The sale evidence is

important to double check on site which comparable use.

During Valuation Work Process

i. On the day of inspection, valuer have to make sure the location of the subject
property and the full address is right.

ii. Valuer need to measure the property using the measurement tape and sketch the
floor plan.

iii. The finishing of the subject property must be note.
iv. Any extension or renovation need to state.
v. Take the picture of general view of subject property, rear view, signage, internal

view, living, dining, kitchen, surrounding area and etc.
vi. The relevant document should be collect from clients.
vii. Double check the comparison either basic or renovated.

9

After Valuation Work Process
i. Prepare the appendices which is valuer have to redraw the floor plan and insert the

picture of subject property.
ii. Valuer need to calculate Main Floor Area (MFA) and Ancillary Floor Area (AFA)
iii. Do the calculation of Market Value using the Microsoft Excel. The calculation must

be match with adjustment to arrive the Market Value.
iv. The draft of valuation report will be submit to Head Valuation Department for

checking.
v. After get the approval from Head of Valuation Department, the valuation report can

be print.
vi. The valuation report will be sign by the Director.
vii. All the billing or tax invoice will be prepared by Finance Department.
viii. The valuation report will be send to clients.

10

PART B – VALUATION REPORT

1.3 INTRODUCTION
Further to your instructions to ascertain the Market Value of the above mentioned
property here in after referred to as the subject property, I am pleased to inform you
that I have completed the valuation of the said property in accordance with the
guidelines of the Malaysian Valuation Standards as issued by the Board of Valuers,
Appraisers and Estate Agents, Malaysia.

1.4 DATE OF VALUATION
I have made the prerequisite inspection of the subject property on the 4th December
2019 and taken all reasonable measures to review the general and specific attributes
of the property and its location. The valuation is based on market data references
which we have analyzed and are essential to support the valuation as reported
herein. The date of inspection is taken as the material date of valuation unless
otherwise stated. As instructed, the valuation report is prepared for the purpose of
FINANCE.

11

1.5 PARTICULARS OF TITLE

I have made a title search on the 26th November 2019 and the brief particulars of
individual title as extracted from the title search of the registered document of title
at the Putrajaya Land Registry in Presint 2, Putrajaya are as follows:-

Title No. : HSD 8134

Lot No. : PT 11570, Presint 15

Locality : Presint 15

Bandar : Putrajaya

District : Putrajaya

State : Federal Territory of Putrajaya

Nature of Interest : Freehold

Land Area : 219.00 square metres

Annual Rent : RM657.00

Category of Land Use : Bangunan

Registered Proprietor : Qutren Nada binti Ahmad
Express Condition : Perniagaan – Kedai Pejabat

12

1.6 DETAILS OF PROPERTY

Legal Description : Title No. HSD 8134, Lot No. PT 11570, Presint 15, Bandar

Putrajaya, District of Putrajaya, Federal Territory of Putrajaya.

Address : No. 32, 32A & 32B, Jalan Diplomatik, Presint 15, 62050

Putrajaya (address stated in the Instruction Letter as No. 32,

Jalan Diplomatik, Presint 15, 62050 Putrajaya, WP Putrajaya).

Tenure : Freehold.

Type of Property : An intermediate unit three-storey shop office.

Site Description : Rectangular

Land Area : 219.00 square metres (2,357 square feet)
Approx. Site : Frontage – 7.3 metres (24 feet)
Dimensions
Depth – 30.0 metres (98 feet)

Location/Name of : Jalan Diplomatik, Presint 15, 62050 Putrajaya, about 32.0

Scheme kilometres to the south of Kuala Lumpur City.

Accessibility : From Kuala Lumpur City Centre via Jalan Sultan Hishamuddin,

Jalan Istana, Jalan Sungai Besi, Lebuhraya Kuala Lumpur-

Seremban, exit at Kajang Toll Plaza onto Lebuhraya Lembah

Klang Selatan, Persiaran Utara, Persiaran Timur, Lebuh

Perdana Timur, Jalan P14 and finally onto Jalan Diplomatik, the

frontage road.

Surrounding Area : Presint 14 of Putrajaya, Taman Rimba Alam, Danau Point,

Taman Putra Perdana and Taman Wawasan Putrajaya.

13

Type of : The building is constructed of reinforced concrete framework
Construction
and floors, brick walls and pitched truss roof with concrete roof
Doors
tiles.
Windows
Floor Finishes : Aluminium framed glass casement, solid timber, timber flush,
Wall Finishes
glass door and timber framed glass casement.
Ceiling Finishes
Accommodation : Aluminium framed glass casement and top hung.

: Porcelain tiles, ceramic tiles and cement render.

: Plastered and painted except for the Pantry and toilets which are

lined with 2.0-metre high glazed tiles glazed tiles.

: Plastered, painted and flat asbestos free cement sheets.

: Ground Floor Verandah, Shop Area, Utility Room,

Storage Area, Pantry, 2 Toilets and

terrace.

First Floor Receptionist Area, Waiting Area,

Meeting Room, General Office Area,

Manager Room with an attached

Balcony, File Area, Pantry and 2

Toilets.

Second Floor Receptionist Area, General Offices

Area, Discussion Area, Manager Room

with an attached Balcony, Pantry and 2

Toilets.

14

Estimated Gross : Total Main Floor Area 360.00 sq. m. (3,875 sq. ft.)
Floor Area Total Ancillary Floor Area 29.36 sq. m. ( 316 sq. ft.)
Total Gross Floor Area 389.32 sq. m. (4,191 sq. ft.)

State of Decorative Reasonable.

Repair :

Occupancy Status : Occupied.

Provision of Public

Services : Perbadanan Putrajaya for the provision of refuse collection,
repair and maintenance of roads, roadside drains and
Provision of Other pavements, street lighting and landscaping.

Services : Water, electricity supply, telephone line, schools and Mosque.

Planning and Land Commercial.

Use :

15

1.7 BASIS OF VALUATION
The BASIS OF VALUATION as adopted for the purpose of this report is MARKET
VALUE. This is the amount a property would bring if offered for sale in the open market
at the date of valuation under circumstances that meet the requirements of the market value
definition. To estimate Market Value, I must first estimate the highest and best use, or most
probable use. That use may be for the continuation of a property’s existing use or some
other alternative. These determinations are made from market evidence.
MARKET VALUE is therefore defined by the Malaysian Valuation Standards
(Standard 1.3.1) as follows:-
Market Value is the estimated amount for which an asset or liability should exchange on
the valuation date between a willing buyer and a willing seller in an arm’s-length
transaction after proper marketing where the parties had each acted knowledgeably,
prudently and without compulsion.

16

1.8 METHOD OF VALUATION
The methods of valuation are the means to arrive at an opinion of value after having
ascertained all relevant facts pertaining to the property. I have adopted the Comparison
Method and Cost Method
The Comparison Method entails comparing the subject property with comparable
properties which have been sold or are being offered for sale and making adjustments for
factors which affect value such as location, accessibility, market conditions, size, shape
and terrain of land, tenurial interest, restrictions in title, occupancy status, built-up area,
building construction, finishes, services, age and condition of the building and other
relevant characteristics.
The Cost Method can be defined as a method of valuation whereby the market value is
derived by adding the site value of the property to the value of the buildings on the site.
We adopted this method as a check method in support of the main method in order to
provide a conclusive opinion value.

17

1.9 ANALYSIS DATA

No Address Property Type Land Area Transaction Date Source

1. No. PT 11668, An intermediate 218.97 sq. m. RM2,854,866.00 10/12/2018 JPPH
JPPH
Jalan Diplomatik, unit four-storey (2,378 sq. ft.) JPPH

Presint 15, shop office.

Putrajaya.

2. No.13, 13A & An intermediate 240.99 sq. m. RM2,600,000.00 07/03/2018
13B, Jalan unit three-storey (2,357 sq. ft.)
Diplomatik 2/2, shop office.
Presint 15,
Putrajaya.

3. 2, Jalan Jati Bukit An intermediate 218.97 sq. m. RM2,350,000.00 06/05/2017

P11/25, Presint unit three-storey (1,496 sq. ft.)

15, Putrajaya. shop office.

1.10 OPINION
This comparable is more than 2 years, in my opinion it is still relevant and can be used as
a supporting comparable.

1.11 CONCLUSION

Based on the prevailing property market conditions and recent transactions, I have
determined the said values for the No. 32, Jalan Diplomatik, Presint 15, 62050 Putrajaya,
WP Putrajaya with vacant possession, in good marketable, restorable title and free from all
encumbrances, as at 4TH December 2019 :-

The Market Value is RM2,710,000.00
(Ringgit Malaysia: Two Million Seven Hundred and Ten Thousand Only)

18

APPENDICES

19

CALCULATION

Land Area : 219.00 sq. m. (2,357 sq. ft.)
360.00 sq. m. (3,875 sq. ft.)
Total Main Floor Area : 29.36 sq. m. (316 sq. ft.)
389.32 sq. m. (4,191 sq. ft.)
Total Ancillary Floor Area :

Total Gross Floor Area :

Calculation for Main Floor Area

GROUND FLOOR

1) 24 feet x 46 feet = 1,104 sq. ft.
2) 8 feet x 4 feet = 32 sq. ft.
3) 7 feet x 3 feet = 21 sq. ft.

Total 1,104 sq. ft. + 32 sq. ft. + 21 sq. ft. = 1,157 sq. ft.

FIRST FLOOR

1) 24 feet x 54 feet = 1,296 sq. ft.
2) 8 feet x 2 feet = 16 sq. ft.
3) 8 feet x 4 feet = 32 sq. ft.
4) 5 feet x 3 feet = 15 sq. ft.

Total 1,296 sq. ft. + 16 sq. ft. + 32 sq. ft. + 15 sq. ft. = 1,359 sq. ft.

SECOND FLOOR

1) 24 feet x 53 feet = 1,272 sq. ft.
2) 8 feet x 2 feet = 16 sq. ft.
3) 8 feet x 5 feet = 40 sq. ft.
4) 5 feet x 4 feet = 20 sq. ft.
5) 11 feet x 1 feet = 11 sq. ft.

Total 1,272 sq. ft. + 16 sq. ft. + 40 sq. ft. + 20 sq. ft. + 11 sq. ft. = 1,359 sq. ft.

MFA = 1,157 sq. ft. + 1,359 sq. ft. + 1,359 sq. ft.
= 3,875 sq. ft. (360.00 sq. m.)

20

Calculation for Ancillary Floor Area

GROUND FLOOR

Verandah = 24 feet x 8 feet

= 192 sq. ft.

Terrace = 9 feet x 4 feet

= 36 sq. ft.

Total 192 sq. ft. + 36 sq. ft. = 228 sq. ft.

FIRST FLOOR

Balcony = 11 feet x 4 feet

= 44 sq. ft.

SECOND FLOOR

Balcony = 11 feet x 4 feet

= 44 sq. ft.

AFA = 192 sq. ft. + 44 sq. ft. + 44 sq. ft.
= 316 sq. ft. (29.36 sq. m.)

21

COMPARISON METHOD

Location (1) (2) (3)
No. PT 11668, Jalan No.13, 13A & 13B, 2, Jalan Jati Bukit
Diplomatik, Presint 15, Jalan Diplomatik 2/2, P11/25, Presint 15,
Presint 15, Putrajaya.
Putrajaya. Putrajaya.

Sales Summary (RM) 2,854,866 2,600,000 2,350,000
Date Of Transaction/For Sale 10-Dec-18 7-Mar-18 6-May-17
ANALYSIS
5,381 5,381 4,271
Built-Up (sq. ft.) 120.00 100.00 100.00
Rate (RM/psf)
2,378 2,357 1,496
Land (sq. ft.) 928.99 874.80 1,285.36

Analysed (RM/psf) 0.0% 0.0% 10.0%
0.0% 0.0% 0.0%
ADJUSTMENT 0.0% 0.0% 0.0%
0.0% 0.0% -5.0%
Time/Negotiation 0.0% 0.0% 0.0%
Location 0.0% 0.0% 0.0%
Terrain/condition 0.0% 0.0% 5.0%
Size 928.99 874.80
Tenure 1,349.63
site improvement 1,051.14 SAY
928.99 990.07
Total Adjustment
990.07
Adjusted Land Value
(RM/psf)

Mean (Average)
=
Median (Centre)
=

Value Land (ave)

22

COST METHOD = 3,875 sq. ft. x RM100
Cost of Building = RM387 500 x (1-5%)
Depreciate 5% = RM387 500 x 0.95
Main Floor Area = RM368 125
= 316 sq. ft. x RM50
Ancillary Area = RM15 800 x (1-5%)
= RM15 800 x 0.95
Building = RM15 010
= RM368 125 + RM15 010
= RM383 135

MARKET VALUE

Land Area 2,357 sq. ft.
Per sq. ft. RM990.07
RM990.07 x 2,357 sq. ft.
RM2,333,881

Building Area 4,191 sq. ft.
Per sq. ft.
RM91.42
Market Value
RM91.42 x 4,191 sq. ft. RM383 135

: RM2,717,016

Say @ RM2,710,000

23

LOCATION PLAN

SUBJECT PROPERTY

24

SITE PLAN

JALAN DIPLOMATIK

SUBJECT
PROPERTY

25

FLOOR PLAN

24'-0" 24'-0"

TE RRAC E TOILET BALCONY TOILET BALCONY TOILET

TOILET PANTRY MANAGER TOILET MANAGER TOILET
ROOM ROOM
PANTRY

PANTRY

STORAGE AREA GENERAL
OFFICE
AREA DISCUSSION
AREA

54'-0" UT IL ITY STORE GENERAL OFFICE
AREA AREA

Up WAIT ING 60'-0"
60'-0" AREA

SHOP AREA RECEPTIONIST
AREA

Up RECEPTIONIST Up
AREA

STORE

ME ETING OFFICE OFFICE
ROOM AREA AREA

8'-0" VERANDAH

GROUND FLOOR FIRST FLOOR SECOND FLOOR

26

PHOTOGRAPHS

GENERAL VIEW OF THE SUBJECT PROPERTY
NO. 32, 32A & 32B, JALAN DIPLOMATIK,
PRESINT 15, 62050 PUTRAJAYA.

SURROUNDING AREA REAR VIEW OF THE SUBJECT PROPERTY
27

CLOSE UP VIEW OF SHOP AREA
SUBJECT PROPERTY

INTERNAL VIEW OF SUBJECT PROPERTY

INTERNAL VIEW OF REAR VIEW OF SUBJECT PROPERTY
SUBJECT PROPERTY 28

RECEPTIONIST AREA WAITING AREA

MEETING AREA

MANAGER AREA PANTRY 29

RECEPTIONIST AREA DISCUSSION AREA

OFFICE AREA

MANAGER ROOM GENERAL AFFICE AREA 30