Current valuation practice in Australia

Boyd, Terry

doi:10.1108/14635789510088627

Cited by 8 publications

(14 citation statements)

References 1 publication

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“…As presented in Table II, the majority of (65.6 per cent) of the valuers work in the capital cities such as Sydney, Melbourne, Brisbane, etc., which is almost double the number of valuers (34.4 per cent) practising in non-capital cities. These findings are in line with Boyd (1995), and this distribution has been attributed to the fact that property market in the capital cities are larger and more liquid than non-capital areas (Deloitte Australia, 2018). In addition, there is a higher demand for valuation service, such as for transaction, mortgage, borrowing, taxation, merger and acquisition in larger cities (Mooya, 2011).…”

Section: Resultssupporting

confidence: 78%

“…A similar situation is obtainable in Nigeria and South Africa (Abidoye and Chan, 2016; Mooya, 2015), which can be interpreted that doctoral degree holders tend to pursue an academic career rather than being a valuation practitioner. Boyd (1995) found that 73 per cent of Australian property valuers had undergraduate certificates or associate diplomas, and only 6 per cent of them had postgraduate qualifications. The academic qualification of valuation practitioners in Australia has improved to a large extent over the last 20 years.…”

Section: Resultsmentioning

confidence: 99%

“…They are responsible for the regulation, promotion and enforcement of sound valuation professional standards which valuers must adhere to. Boyd (1995) argued that university property programmes cannot equip a graduate with all the personal and professional skills they need in practice, and it is the graduate training programmes provided by professional bodies that can truly help. In addition, valuers are connected and engaged with the professional bodies during their careers, compared with educational institutions where they only spend a few years.…”

Section: Resultsmentioning

confidence: 99%

“…While the online questionnaire approach has its shortcomings, it has been adopted in previous similar studies (e.g. Boyd, 1995; Mooya, 2015; Abidoye and Chan, 2016; Abidoye et al , 2018) and has proven to be effective in capturing opinion-based data.…”

Section: Data and Research Methodologymentioning

confidence: 99%

“…In Australia (and globally), the property valuation profession (and the real estate industry in general) has witnessed some changes recently (Wilkinson et al , 2018). According to Boyd (1995), the valuation profession in Australia was disordered because there was a lack of uniformity in property valuation methods being adopted by valuers. Ten years later, Elliott and Warren (2005) advocated that valuers should adopt new technologies to achieve more accurate and efficient valuation estimates.…”

Section: Introductionmentioning

confidence: 99%

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Property valuation methods in practice: evidence from Australia

Abidoye

Lam

et al. 2019

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Purpose Improving valuation accuracy, especially for sale and acquisition purposes, remains one of the key targets of the global real estate research agenda. Among other recommendations, it has been argued that the use of technology-based advanced valuation methods can help to narrow the gap between asset valuations and actual sale prices. The purpose of this paper is to investigate the property valuation methods being adopted by Australian valuers and the factors influencing their level of awareness and adoption of the methods. Design/methodology/approach An online questionnaire survey was conducted to elicit information from valuers practising in Australia. They were asked to indicate their level of awareness and adoption of the different property valuation methods. Their response was analysed using frequency distribution, χ2 test and mean score ranking. Findings The results show that the traditional methods of valuation, namely, comparative, investment and residual, are the most adopted methods by the Australian valuers, while advanced valuation methods are seldom applied in practice. The results confirm that professional bodies, sector of practice and educational institutions are the three most important drivers of awareness and adoption of the advanced valuation methods. Practical implications There is a need for all the property valuation stakeholders to synergise and transform the property valuation practice in a bid to promote the awareness and adoption of advanced valuation methods, (e.g. hedonic pricing model, artificial neural network, expert system, fuzzy logic system, etc.) among valuers. These are all technology-based methods to improve the efficiency in the prediction process, and the valuer still needs to input reliable transaction data into the systems. Originality/value This study provides a fresh and most recent insight into the current property valuation methods adopted in practice by valuers practising in Australia. It identifies that the advanced valuation methods could supplement the traditional valuation methods to achieve good practice standard for improving the professional valuation practice in Australia so that the valuation profession can meet the industry’s expectations.

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Section: Resultssupporting

confidence: 78%

Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

Section: Data and Research Methodologymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Property valuation methods in practice: evidence from Australia

Abidoye

Lam

et al. 2019

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Examining valuer's judgement in residential property valuations in metropolitan Lagos, Nigeria

Aluko

2007

Property Management

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Purpose -The purpose of this research is to examine whether valuers consider and interpret intrinsic value elements in a residential property the same way in a familiar location. The price people pay for a complex commodity like residential property is a sum of the utility of various intrinsic and extrinsic characteristics. The skill of the valuer rests in the recognition of value-enhancing elements in order to arrive at a value for the subject property. Design/methodology/approach -Relevant data for the study were gathered from a controlled-experiment involving some residential properties and administration of questionnaires backed up with oral interviews on a random sample of 59 valuation firms in metropolitan Lagos, a commercial nerve-center in the country. The data were analyzed using both descriptive statistics and analysis of variance. Findings -The study showed that there are differences in the means and interpretation of value-enhancing variables amongst valuation firms sampled. The study, inter alia, concluded that non-duplicative nature of real estate, differences in the skills and degree of technical competence of the valuation firms including length of practice, absence of a centralized database and lack of valuation practice statements as well as updated guidance notes are the key factors, amongst others, responsible for the variability in the valuers' judgement in the study area. Originality/value -The paper contributes to the empirical literature in valuation accuracy by establishing the level of interpretative errors in residential property valuations and the key factors responsible for the variability in the valuers' judgement in the study area.

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Forces for change in property education and research in Australia

Hefferan

Ross²

2010

Property Management

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PurposeThis paper aims to identify changes occurring within the property professions and at the same time focus on the changing structures of the tertiary education sector in Australia and how both of these will influence property/real estate education and research into the future.Design/methodology/ approachThe paper reviews a range of published international material and conference papers mostly emanating from the Pacific Rim Real Estate Society (PRRES) a formal focus for property researchers, educators and practitioners from over 15 countries. Structured interviews with leading property academics were conducted along with the authors' direct involvement with the Australian Property Institute and their National Education Board.FindingsThere is a strong demand for tertiary/property real estate education, which will continue in Australia though with a likely wider base extending beyond the traditional valuation and analysis fields. However, given the significant emerging changes in the tertiary sector in Australia, certain universities will tend to focus in such specialist areas.Research limitations/implicationsIt would appear that this is not a widely researched area outside the PRRES group. The findings, however, are sound and have important implications for education and research in this critical economic sector.Practical implicationsThe findings should help better refine the academic offer and research initiatives developed by those individual universities as they seek to establish their market niche. Whilst this paper applies particularly to the Australian context, observations regarding changing demand will be of wider interest and assistance.Originality/valueThis paper for the first time considers the changing demand for real estate / property graduate courses and demands for research in this field against the backdrop of contemporary change in the tertiary sector in Australia.

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Current valuation practice in Australia

Cited by 8 publications

References 1 publication

Property valuation methods in practice: evidence from Australia

Property valuation methods in practice: evidence from Australia

Examining valuer's judgement in residential property valuations in metropolitan Lagos, Nigeria

Forces for change in property education and research in Australia

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