Valuation and Property Services Department director-general Ahmad Zailan Azizuddin has called for government intervention to ensure property developers disclose developments costs.

This move is to reduce different valuations by the department and private property valuers.

Zailan said the government should have a strong policy in place, and the commitment to ask property developers to reveal the actual costs of their developments.

"In a way, it may be practical for affordable housing projects. The government has intervened in terms of what the components of the costs are, and where we should get the ingredients of the cost. 

"All must be transparent, especially from those who build the houses," he told reporters after the launch of the Malaysian Property Market 2018 report by Finance Minister Lim Guan Eng here today.

Zailan said there are various methods and standards of valuation practice in Malaysia based on the market comparison approach.

"In the valuation profession, the cost depreciation method is our last resort because cost is not equal to value. 

"Cost and value are very different, cost may be higher than value or lower than value," he said.

Earlier, Lim called for a transparent method to ensure the gap between property valuations by the department and private valuers is not too big.

"Maybe in terms of methodology, some quarters feel we should not use the comparison method, but rather the cost depreciation method. 

"But let this matter be discussed first before it is finalised," he said in his speech.

Lim added that frequent discussions should be held between the department and private property valuers.

- Bernama