THE International Valuation Standards Council has signed a landmark memorandum of understanding, to adopt a universal method of valuing real estate assets across the globe within the next three years.
According to the IVSC, there is currently no single set of global standards for estimating the value of assets, making it more difficult to accurately compare assets when making cross border investment decisions.
“Variation of international standards for valuing assets potentially represents a potential problem for global markets and economies, and it has to be in the public interest to bring the various nationally based standards together to create a single set of globally accepted principles,” IVSC chairman Sir David Tweedie said.
“By banding together with this MOU, the IVSC and the signatory VPOs hope to align the already high standards which exist in parts of the international arena and further propagate best practice. This will help iron out any inconsistencies in areas where standards are less well developed.
“This MOU which is signed by some of the biggest professional valuation bodies in the world means that these institutions are committed to the development of international standards which value assets in conformance, irrespective of where they are located. This is a landmark achievement and represents a major step towards getting global adoption of international valuation standards,” he added.
The following organisations have signed the MOU:
· American Society of Appraisers
· Appraisal Institute of Canada
· Asociación Profesional de Sociedades de Valoración (Spain)
· Australian Property Institute
· Canadian Institute of Chartered Business Valuators
· Chamber of Professional Appraisers – Kazakhstan
· China Appraisal Society
· Expertise Institute for Valuation of Assets of Georgia
· Hong Kong Institute of Surveyors
· Institute of Philippine Real Estate Appraisers
· Instituto Brasileiro Avaliacoes (IBAPE)
· Indonesian Society of Appraisers
· Nigerian Institute of Estate Surveyors and Valuers
· Property Institute of New Zealand
· Republican Chamber of Appraisers Kazakhstan
· Royal Institution of Chartered Surveyors
· Slovene Institute of Auditors
· South African Institute of Valuers
· Thai Valuers Association
API president Robert Hecek said the institute as the premier property professional organisation in Australia, representing the interests of more than 7,800 property professionals.
“Our primary role is to set and maintain the highest standards of professional practice, education, ethics and conduct for its members and the broader property profession.
“This MOU, a landmark, places Australia at the international table where we, with our international colleagues and signatories can lead the way in getting international standards adopted worldwide. This is good for our industry and it is good for Australia,” Hecek said.
Australian Property Journal
