IPS Valuation &
Advisory Services

Property ownership in Cambodia has a relatively short history compared to the global norm. There are many reasons why getting the correct market value before the sale process is not prioritized.

• For many property owners in Cambodia, the sale of a property is often not a commercial decision, but often one based on necessity or opportunism.

• There is an inherent lack of trust in companies and institutions; especially those claiming to wield the truth.

• Most real estate agents offer an opinion of the market value of a property. However, the processes and the research underlying it is not taken into consideration.

• The property market generally lacks transparency. There is very limited impartial and properly researched information available for residential and commercial real estate owners, banks, and investors.

• The sale process is usually clouded by the ‘opinions’ of interested parties.

Why is it Important?

Every property owner has an opinion of what their property is worth. Every buyer has their own opinion as well. In markets that have an imbalance of information, this creates inefficient markets. Usually, the variance in the pricing of properties with similar characteristics is very large.

Initially, this will create plenty of opportunities and risks for both buyers and sellers. Long term, this dramatically reduces market liquidity. Sellers react by pricing well above what they think is fair. Buyers can then offer well below the market value. The sale process can then become a stalemate.

At IPS, we see this as a process to remedy this stalemate and improve transparency. It is an opportunity to create better outcomes for all market participants.

At IPS, our valuation and advisory services are designed to deliver insights into a property’s fundamentals, its competitors and the overall market dynamics affecting both its current and future value.

We believe that this process can be a strategic asset for investors and owners alike. As long as reporting is clear and prompt, issues specific to the Cambodian business and real estate market are addressed.

• International valuation standard (IVS) is adopted
• Internally-built Property Database System
• Actual transaction (Recent Sale) must be obtained for market value analysis
• Market Value must be approved by the valuation committee comprising of:
  • Country Manager
  • Head of Valuations
  • Valuation Manager & Senior Valuer
• Market Commentary included in the report
• 3 types of reporting material
  • Comprehensive report
  • Executive Report
  • Valuation Certificate
• Crackdown on corruption. Once found, immediate termination awaits the person(s)
  involved in the case
• Service Level Agreement (SLA) for our bank partners
• IPS Brand – Honesty, professionalism & integrity

There are a number of ways to value a property. If you talk to three different Valuers regarding the value of a house, you will get three different estimates.

At IPS, we use different methodologies in measuring the value of a property. After which, we choose the right method(s) that suit that particular asset or an average of two or more methodologies.

It is not only the methodology that is important, but the assumptions used to come to a correct estimate. These assumptions are crucially important in producing a fair and impartial evaluation. Information that we have available is built up over many years of experience working in the sales process and collecting data.

For the opinion to hold any weight it must be couched in reality. At IPS, we pride ourselves on having up-to-date and comprehensive price data for Phnom Penh and Siem Reap. Data that has been compiled by IPS’ Team over a combined fifteen years.

From this data, IPS’ team draw their assumptions and use their wealth of experience to create their perception of reality – a valuation. The results we generate is respected and approved by 10% of the leading banks in Cambodia.