2. Training Agenda
1. Concept and Basic Principle of Valuation
2. Valuation Process : Data Collection, Site Visit & Analysis
3. BOV Report
2
3. Concept & Basic Principle Of Valuation
How property valuation works
1
4. BOV
concept
Is your opinon of value, not the value which
seller or buyer wants
BOV is not a substitute for a report that
prepared professionally by Registered
Public Valuer
4
5. “Value is an opinion of the
economic benefits of owning
an asset, or the most
probable price to be paid for
an asset in an exchange,
therefore value is not a fact
5
6. Basic valuation
principles
╸ Price (is a term used for the amount asked, offered, or paid
for a good or service)
╸ Cost (is the price paid for goods or services or the amount
required to create or produce the good or service)
╸ Value (Value is an economic concept referring to the price
most likely to be concluded by the buyers and sellers of a
good or service that is available for purchase. )
6
10. Data Collecting
Legal Document
- Land title
certificates
- Development
Permits
- Property Tax
Receipt (SPPT-PBB)
Building Information
- Building Layout
- Building
Specification
- Tenant Rent Roll
- Feasibility Study
- Business Plan
Financial Information
- Financial
Statements (3-5
years financial
statements)
- Detail Operating
Expenses
10
14. 14
PLOT A
Effective Land Area Approximately 1,210 sqm
(From total land area 1,684 sqm )
PLOT B
Effective Land Area Approximately 2,049 sqm (From
total land area 2,105 sqm )
https://jakartasatu.jakarta.go.id/
18. Objectives :
╸ Building Specification, type of building, construction,
number of floors, size, utilities.
╸ Building physical condition
╸ Existing building use
╸ Rental rate, occupacy rate, tenant rent roll, general
operational conditions.
Site Visit /
Virtual Site Visit
18
19. Objectives :
╸ Market Comparable
╸ Identify Location and Environmental
╸ Development quality
╸ Local regulation
Site Visit /
Virtual Site Visit
19
24. ╸ Market Approach
A valuation approach which provides an indication of value by comparing the subject asset with
identical or similar assets for which price information is available.
╸ Income Approach
A valuation approach that provides an indication of value by converting future cash flows to a
single current capital value.
╸ Cost Approach
A valuation approach based on the economic principle that a buyer will pay no more for an
asset than the cost to obtain an asset of equal utility, whether by purchase or by construction.
Valuation Approach
24
26. Market Approach
26
Comparable 1
Located at Jalan Asia Raya / Jalan Asia
I, Block B3, land area 20,000 m2,
Contact Agent xxxxx or xxxxxi +62 21
570 xxxx, Asking price for Vacant land
Rp. 1,650,000/sqm, the land title
certificate will expired at 2023 ( 8 years
remaining)
Comparable 2
Located at Block C4/5, Marketing
Krakatau Industrial Estate Cilegon, land
area 13,149, Contact Person 0811-
888xxxx. Asking price for vacant land
Rp. 2,000,000/sqm (negotiable) HGB
land title certificate for 30 years
Comparable 3
Located at Block F2, Jalan Australia I
Contact Person, 0821-11808xxxx or
0811168xxxx, Land area 37,600 m2 ,
Factory building 5,000 m2, unfinished
building for training center 750 m2,
asking price USD 5,500,000,-, the land
title certificate will expired at 2042 (27
years remaining)
MARKET COMPARABLES
PROPERTY
COMPARABLE 1
COMPARABLE 2
COMPARABLE 3
28. Market Approach
28
VALUATION WORKINGS Description Prepared By Verif A Verif B
SALES COMPARISON METHOD Initial Kardo
Date 5-Oct-19
Signature
Subject Property Land and Buildings
Location Krakatau Industrial Estate Cilegon
Kotasari Subdistrict, Grogol District
Cilegon City, Banten Province, Indonesia
Date of Valuation 05 Oktober 2019
Land Area (m²) 3,150
Building Area (m²) 1,827
Title
Shape Rectangular
Zoning Industrial
Site Coverage (KDB) / Plot Ratio (KLB)
Topography
View
32,808 -1 -3
CLIENT : PT XXXXXXXXXXXX
Ref No : XXX
Right to Build (Hak Guna Bangunan) on the top of Right To Manage (Hak Pengelolaan) , HGB No. XXX expired 21-04-2034 (19
years remaining)
Rightto Build(HGB) is basicallyarightgrantedby the governmenttoestablishandconstruct(buildings)onlandfor
a periodof, theoretically, atthe most30 years, whichmaybe extendedforanother20 years.Nowadayswe
normallysee HGBcertificates, withperiodsof 20 years.Afterthe termof extensionexpires, aHGB title may
theoreticallybe renewedforanother30years, cost for renewal is5% frompropertytax value
29. Market Approach
29
Comparables
Listings
Type
Source
Telephone
Location
Land Area (sqm)
Building Area (sqm)
Building Finished in year
Shape
Title
Town Planning
Site Coverage or Plot Ratio
Topography
General Specs of Building
Asking Price
Likely Sale or Transaction Price
Assumed discount
Date
Jalan Asia Raya Block B3 Block C4/4 Jalan Australia I Block F2
Asking Price Asking Price Asking Price
No.1 No.2 No.3
08177882XXX 0811 8884 XXX 0811 XXX
XXXXX Marketing PT. KIEC XXXXX
Industrial Land Industrial Land Industrial Land
2014
5,000
Krakatau Industrial Estate Krakatau Industrial Estate Krakatau Industrial Estate
200,000 13,149 37,600
HGB ( 8 years remaining) HGB ( 30 years remaining) HGB (27 Years remaining)
Industrial Industrial Industrial
Rectangular Rectangular Rectangular
Concreate Brick - Epoxy - Steel Frame - Spandeck
Flat Flat Flat
0% 0% 0%
10% 15% 5%
297,000,000,000
Rp 22,353,300,000
Rp 70,396,425,000
Rp
330,000,000,000
Rp 26,298,000,000
Rp 74,101,500,000
Rp
Rp 2,019 Rp 2,019 Rp 2,019
30. Market Approach
30
Unit Cost
Base Cost
VAT (10%)
Fee and Permits (7.5%)
Depreciation
Market Value
Residual land value
Residual land value (sqm)
Land Residual Method
Rp 0 Rp 0 Rp 11,000,000,000
Rp 0 Rp 0 Rp 10,000,000,000
Rp 0 Rp 0 Rp 2,000,000
Rp 0 Rp 0 Rp 11,529,375,000
Rp 0 Rp 0 Rp 295,625,000
Rp 0 Rp 0 Rp 11,825,000,000
Rp 1,485,000 Rp 1,700,000 Rp 1,565,613
Rp 297,000,000,000 Rp 22,353,300,000 Rp 58,867,050,000
31. Market Approach
31
Adjustment
Element of Comparison
29,700 2.0% (34,000) -2.0% (31,312) -2.0%
- 0% - 0% - 0%
- 0% - 0% - 0%
- 0% - 0% - 0%
(example : cost to renovation, arrears of tax)
- 0% - 0% - 0%
Situation - 0% - 0% - 0%
Access (74,250) -5% - 0% (78,281) -5%
View - 0% - 0% - 0%
Surrounding Area - 0% - 0% - 0%
Shape - 0% - 0% - 0%
Size 222,750 15.0% 85,000 5% 156,561 10%
Topography - 0% - 0% - 0%
- 0% - 0% - 0%
example : operator, term of lease, tenant mix)
Zoning - 0% - 0% - 0%
Site Coverage / Plot Ratio (KDB/KLB) - 0% - 0% - 0%
Other Limitation - 0% - 0% - 0%
- 0% - 0% - 0%
(example : furnished or unfurnished)
1,701,905 /sqm
22% 7% 17%
4.5 14.3 5.9
Min 1,612,581 7.9%
Max 1,751,000 OK!
3,150 Sqm
/sqm
(Total conclusion)
5.23.7 Physical Characteristics
5.23.8 Economics Characteristics (for commercial property,
5.23.9 Property Use
5.23.10 Non-Realty Components in Sales
Estimated Land/Unit Value (Rp/sqm) 1,663,200
5.23.1 Title
5.23.2 Terms of Financing (example : hard cash or credit)
5.23.3 Sales Conditions (fairness of transaction)
5.23.4 Expenses Incurred Immediately After Purchasing
5.23.5 Market Conditions (Time of Transaction)
5.23.6 Location
Deviasi
NOTE
Ranking 18.39% 57.81% 23.80%
1,751,000 1,612,581
Land/Unit Price
Land/Unit Area
CONCLUSION
1,701,905
5,360,999,796
Say 5,361,000,000
