Property

Valuation profession adapts and changes

While there are unprecedented challenges across many sectors, the valuation industry has adapted traditional operating models and adopted new ideas.

Thursday, July 22nd 2021

Valuation is an essential industry for property investors and although the Covid-19 pandemic was expected to dramatically change the market, it emerged even stronger after the initial lockdown in 2020.

The sudden swell in activity has left many valuers struggling to keep up with the demand and rapid movements in the housing market.

This has challenged the industry to do things differently – such as developing special valuation instructions for virtual inspections.

Valuers at CoreLogic developed the process which was initially quite confronting to many industry parties.

But valuation firm Opteon’s regional director Richard Vaughan says the profession had to be pragmatic and make the change happen.

“The continuing high level of demand for valuations also poses fatigue risks for valuers as they push themselves to keep up.

“There’s a lot of pressure on valuers at the moment, and the work needs to be done in a safe and practical way,” Vaughan says.

According to CoreLogic data, nationally, average property values have increased 22.8% in the 12 months to June, reaching an all-time high of more than $900,000.

Meanwhile the total value of all residential property in New Zealand has now streaked past the $1.5 trillion mark for the first time.

In a bid to help valuers improve efficiency and focus on value-add work, forward-thinking valuation firms are harnessing technology to automate and streamline many of their processes.

Vaughan believes strong relationships between all stakeholders will also help the industry better manage the complexities around providing accurate valuations that reflect emerging challenges such as environmental risks.

“After the 2011 Christchurch earthquake, an initial evaluation procedure was developed that has since become essential for all commercial lending,” he says.

“Every time there’s an event like this, we learn more about the role of valuations from a risk perspective, and we can apply these learnings to climate change risks as well.”

This is going to be a looming risk for property investors with coastal properties.

“We need to be prepared to adapt and evolve so we can do things faster and ensure we stay relevant,” says Vaughan.

Comments

No comments yet

Heartland Bank - Online 1.85
HSBC Premier 2.19
HSBC Special 2.25
Kainga Ora - First Home Buyer Special 2.25
ICBC 2.35
SBS Bank Special 2.49
TSB Special 2.55
ANZ Special 2.60
China Construction Bank Special 2.65
The Co-operative Bank - First Home Special 2.65
The Co-operative Bank - Owner Occ 2.85
Heartland Bank - Online 2.35
HSBC Premier 2.45
China Construction Bank Special 2.65
ICBC 2.75
Resimac 2.79
SBS Bank Special 2.89
TSB Special 2.95
Select Home Loans 2.99
Bluestone 2.99
ANZ Special 2.99
Kiwibank Special 3.15
China Construction Bank Special 2.99
HSBC Premier 3.19
Select Home Loans 3.54
Bluestone 3.54
Resimac 3.54
ICBC 3.75
SBS Bank Special 3.79
TSB Special 3.99
BNZ - Classic 3.99
Kiwibank Special 4.19
Kainga Ora 4.22
ANZ Blueprint to Build 1.68
ASB Back My Build 1.79
Heartland Bank - Online 2.25
Resimac 3.39
Bluestone 3.49
Select Home Loans 3.49
ICBC 3.69
Kiwibank Special 3.75
Kiwibank 3.75
Kiwibank - Offset 3.75
The Co-operative Bank - Owner Occ 4.40

More Stories

Rent levels countrywide

Friday, September 24th 2021

Rent levels countrywide

Median rent levels around the country have been examined in the latest Regional Property Insights report by independent economist Tony Alexander and First Mortgage Trust.

Investors continue to shy away from buying more property

Thursday, September 23rd 2021

Investors continue to shy away from buying more property

A net 56% of mortgage advisers are seeing fewer investors stepping forward for mortgage advice, data from the First Mortgage Trust and Tony Alexander September survey shows.

Rents remain at all-time highs

Friday, September 17th 2021

Rents remain at all-time highs

Nationally rents remained at an all-time weekly high of $550 in August despite the country entering a nationwide lockdown.

What office staff expect in a workplace

Friday, September 17th 2021

What office staff expect in a workplace

The office is no longer a place to be anchored at a desk whilst trying to block out the background buzz to meet deadlines.