Property Rating in Ipoh - Malaysia

Abstract

Property rating is a constitutional practice broken down to a workable policy by the enactment of Act 171 of 1976 which empowers all local authorities in Malaysia to levy property rates based on the assessed value of the properties whether by annual or improved value approach. Whatever approach is adopted, there are international established methods and standards of valuation of properties for rating purpose. This paper concentrate on the conventional methods of valuation as is the practice in the study area since the study is specifically to have an in depth understanding of the practice with a view to advancing recommendation for improvements. Paramount to appreciate is that, the computer aided mass appraisal of properties depends on these conventional methods to develop a data bank upon which it can rely thus the utilization of conventional methods cannot be discarded. The study was conducted qualitatively with in depth interview with the valuation officers as the primary tool and documents analysis is employed for triangulation. The study revealed manipulation of process by the political leaders for personal interest against the national interest while the need for professional training of the staffers is required to sufficiently appreciate, thoroughly understand and interpret the requirements for the application of the various methods of valuation as appropriate on classes of properties or uses.

Keywords: Valuation, Rating, Act, Methods, Approach