C&W Vietnam introduces RICS measurement standards

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Recently in Vietnam, there is a public rising concern regarding conflicts between landlords and occupiers due to the different measurement methods of floor area. With the aim to providing audiences an overview of measurement methods in Vietnam and international market, Cushman & Wakefield Vietnam hosted “Royal Institution of Chartered Surveyors (RICS) Measurement Seminar, Practices and Standards” in Hanoi, November 14th, 2013. Being the C&W Vietnam National head of Valuation & Research and the RICS registered valuer, Jonathan Tizzard – Cushman & Wakefield National Head of Valuation & Research is the speaker of the event. 

Joining the event are not only people from real estate field but also experts from other industry like banks, law firms and authorities. Besides, more than 10 reporters from Vietnam Investment Review, VTC10, Dau tu Chung khoan, Info TV, Vietnam News Agency, etc also took part in the seminar. 

However, in Asia, there are 23 different standard units of measurement in use as well as countless other ways that are a mish-mash of standards. “This creates problems for not only developers, i.e. those building real estate; investors, i.e. those that use real estate as part of a portfolio of investments but also the occupiers, i.e. those that are actually using the property”, Jonathan Tizzard warned. Besides, the seminar has also presented the Code of Measuring Practice issued by The Royal Institution of Chartered Surveyors (RICS), which explicitly states what is to be measured depending on what the purpose is.

A real life example that Cushman & Wakefield Representative mentions in the event is the controversial issue regarding condominium floor area due to the different measurement guidance between the Government Decree number 71 and the Construction Ministry Circular number 16. 

Answering the audiences’ question of which method to be workable for the case, Jonathan emphasized that: “It does not necessarily matter which method is used as long as what is measured is explicitly stated.” As the current government legislation is conflicting and adds another layer of confusion to an already confused topic, a solution to this is to adopt an international standard which is understood by all.