Building Inspection for Valuating on Office Buildings in Bangkok

Abstract

In this research investigation, the researchers examine factors affecting office building inspection in Bangkok Metropolis. The reports of office building inspection were analyzed to determine the cost per square meter of office buildings to be used as asset valuation data in accordance with the Asset Valuation Standards of Thailand. In this qualitative research, the researchers inspected an office building in Ratchadaphisek area. Only visual inspection was carried out without any tests using special tools or tests for stability, security and various systems involved with the safety of life and property. The interviews were conducted with engineering professionals and appraisal professionals in order to congregate the level of importance of their opinions concerning affected parameters on the conditions of office buildings prior to the asset valuation. The study of the opinions regarding the office building inspection for asset valuation showed that all engineering professionals interviewed agreed that there should be building inspection prior to asset valuation. Only fifty percent of appraisal professionals agreed that building inspection should be conducted prior valuation. The other fifty percent expressed that it was not necessary because the inspection did not cause any significant changes in property values. In regard to factors related to the consideration of value of used office buildings, it was found that engineering professionals focused on the building systems at the highest level. Appraisal professionals focused on decorations and maintenance at the highest level. In regard to the opinions concerning the building parts to be paid attention to: depreciation, or period of use, it was found that engineering professionals still paid attention to the building systems at the highest level. Appraisal professionals paid attention to building decorations at the highest level. The analysis of office building value which considered office buildings based on their conditions found that the conditions of the building inspected were at a low level (β). The linear depreciation was then calculated. Findings showed that the valuation of buildings without building inspection was higher than those having been inspected. The asset valuation reports could assist the users to be informed of the building value as it should have been.