The Future of the Australian Property Valuation Industry - Industry research report
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The Future of the Australian Property Valuation Industry Industry research report
Preface The Coronavirus continues to impact the health and well-being of people across the world, affecting lives and livelihoods. The flow on effects of the pandemic have created shock waves throughout global economies, with Australia not immune. Despite the serious nature of the pandemic and its effects, the Australian property industry remains resilient and focused on responding to the challenges. The industry has taken evasive action to quickly adopt and implement new processes and technologies to respond to an ever changing landscape. A swift, yet practical, response has meant the valuation industry has been able to continue to support the Australian property market during a time of considerable unpredictability. Amid this uncertainty, in late 2020, the Australian Property Institute and property information and technology provider, The Search People, launched a national research project to understand the sentiment of valuation professionals. This report’s findings explore the thoughts and views of over 590 Australian property professionals - delving into how the profession is responding to the ‘new normal’. This research also took the opportunity to investigate what potential future challenges and opportunities lie ahead for the industry and Australian property market at large. The Future of the Australian Property Valuation Industry | 2021 2 of 22
Research Scope The report is made up of the responses of 591 Australian Property Institute members and non-members who are employed in the property valuation and services industry. Participants were invited to complete the online survey over an eight week period, between mid December 2020 and early February 2021. The survey garnished a total of 591 individual responses with the majority (97%) of respondents being members of The Australian Property Institute. Most (80%) were from a property valuation background, with the remaining employed in adjacent functions including real estate, property development, property advisory, funds management, banking, and government. The survey contained 58 questions on various subjects relating to the Australian property industry. Topics ranged from diversity, education, work-life balance, the current state of the property market, technology, to the respondent’s thoughts on the future of the profession and the Australian property market. The responses of the survey in this report maintains the confidentiality and privacy of all respondents. The Future of the Australian Property Valuation Industry | 2021 3 of 22
Industry Insights
The overarching aim of this joint research
project is to explore and better understand
the challenges and opportunities facing the
modern-day property services professional,
both now and in the future.
The research design focused on exploring
key dependencies within our industry,
ranging from people, processes, technology
through to the various environmental factors
at play. This research examines innovative
ways we as an industry can help drive the
profitability, productivity and longevity of
the industry.
On behalf of the team, I would like to thank
everyone who participated in this research.
Your responses form an integral part of this
report’s findings. Collectively, these insights
will help the profession develop activities
and initiatives to drive an even
stronger profession.
Rafe Berding
CEO, The Search People
The Future of the Australian Property Valuation Industry | 2021 4 of 22
Participant Profile
Total Surveyed Existing API Members
591 97%
Age Group Company Size
Under 35
35-54
20%
55 and over
37%
43%
The Future of the Australian Property Valuation Industry | 2021 5 of 22
Industry Overview: Diversity
Growth, innovation, and productivity in the workplace are undeniably driven by diversity. An industry rich with
different backgrounds, cultures, and beliefs, is a progressive industry that promotes and fosters fresh ideas,
opinions, and attitudes.
In recent years, the Australian property industry, has taken strides to promote diversity throughout its ranks.
Advocating for equality, challenging the gender pay gap, and a focus on promoting the industry to secondary and
tertiary students, are just a few examples of the steps that have been taken to make the industry more inclusive
and diverse.
Do you believe the property profession is diverse?
Overall, 3 in 4 (76%)
of respondents believe
of Under 45’s of Over 45’s
it is diverse.
believe it isn’t diverse. believe it isn’t diverse.
Do you believe diversity within the industry could be improved?
of Under 45’s of Over 45’s
believe it believe it Overall, 3 in 4 (77%) of
could be could be respondents believe diversity
improved. improved. could be improved.
Over 75% of survey respondents voiced their opinion that the property industry is diverse. Interestingly, whilst
the majority believed that the industry is diverse, over 75% also conveyed that they thought there is room for
further improvement for diversity within the industry.
When separating by age we start to see a difference in opinions, despite the subject pools being of similar size.
82% of over 45’s believes the industry is diverse, compared to 68% of under 45’s. Similarly, a larger proportion of
under 45’s (85%) believe diversity could be improved in the industry, whilst 72% of over 45’s believed the same.
When the entire pool was questioned how the industry could create more diversity, common answers included
themes of further promotion of the valuation industry to secondary school leaver groups and a greater emphasis
on universities promoting courses to both public and private secondary schools. Outside of further promotion
to younger audiences, another common theme was for a bigger push for diversity within leadership roles. It is
believed that this will help counteract a culture of recruiting based on social and school networks rather than skills
and qualifications.
The Future of the Australian Property Valuation Industry | 2021 6 of 22Industry Overview: Education
When looking at diversity, it is important to consider attracting, developing, and retaining the right talent. If there
is a feeling of under representation, then it is hard to attract the right talent, similarly if there is a lack of education,
it can be difficult to develop and retain the pool of talent.
Do you think the next generation
Do you believe the industry is
of professionals needs to be
attracting the right talent?
trained differently?
Overall, over 3 in 5 (66%) Overall, 3 in 4 (75%)
respondents believe the industry respondents believe that the
is attracting the right talent. next generation of professionals
needs to be trained differently.
If yes, what skills do you see important for the future?
Do you believe more ‘on-the-job’ experience is needed during tertiary studies?
Over 4 in 5 (85%) of respondents believe more on
the job experience is required.
When questioned on education and talent pools, most responses were consistent and in agreement that whilst
the industry is attracting the right talent, there is more that could be done to train the next generation better.
When asked what skills would be important for the future, there was an overwhelming response for basic
valuation skills to be a focus. It is believed that developing on these skills, along with a better knowledge of the
financial and legal aspects of the industry could help protect the integrity of the role and allow valuers to regain
the power to dictate terms around the valuation.
Similarly, knowledge of the construction and building aspects was deemed an important skill to not only be able
to give a well-rounded, better valuation, but to also gain a stronger position against other market participants and
regain control of the terms around the valuation.
Most respondents (85%) believed that more ‘on-the-job’ experience is needed during tertiary studies. Common
responses indicated that formal mentoring programs would be beneficial to all stakeholders.
The Future of the Australian Property Valuation Industry | 2021 7 of 22Industry Overview: Work-life Balance
Work-life balance is undoubtably one of the largest influences on job-satisfaction, absenteeism, commitment, and
work ethic. On an individual level, if a conflict between work and life exists, it can have devastating implications
on your mental and physical wellbeing. Similarly, if a healthy work-life balance exists, an individual is more likely
to take satisfaction from their work, be more productive and reduce the likelihood of burnout.
Triggered by the Coronavirus pandemic, social distancing and working from home, over the past twelve months,
there seems to have been a global shift and an emphasis towards organisations and their employees striving for a
better work-life balance.
Do you believe you currently have a healthy work-life balance?
Yes (67%) No (33%)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Do you believe you currently have a healthy work-life balance? (by company size)
Yes
1 Employee
No
Yes
2-10 Employees
No
Yes
11-20 Employees
No
Yes
21-50 Employees
No
Yes
51-100 Employees
No
Yes
101+ Employees
No
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
The Future of the Australian Property Valuation Industry | 2021 8 of 22Industry Overview: Work-life Balance
What do you think is the number one thing that could improve your work/life balance?
Over two-thirds (67%) of respondents believe they currently have a healthy work-life balance. When reviewing
by company size, self-employed respondents topped the chart for the healthiest work-life balance with only 16%
saying they do not have a healthy balance. Outside of the self-employed, 35% of respondents believe they do not
have a healthy balance.
Over one-third of respondents said they do not believe they have a healthy work-life balance, which may
sound like a worrying statistic. However, when comparing to similar studies, it was recently found that 69%
of Australian legal and conveyancing professionals do not believe they have a healthy work-life balance (2019
GlobalX + ALPMA Legal Industry Report).
When asked what could be done to improve work-life balance, most respondents favoured more remuneration
and higher levels of flexibility with expected turnaround times of their valuations. There was a consensus that
professionals are expected to deliver a high-quality service for low costs and comply with unfeasible turnaround
times. In-turn this pressure is having a negative consequence on their work-life balance.
The Future of the Australian Property Valuation Industry | 2021 9 of 22Market Analysis: State of Play
How prepared was your organisation for the changes brought on by COVID-19?
3.2
Not Prepared Well Prepared
1 5
How well do you believe your organisation adapted to the changes brought on by COVID-19?
4.0
Did not Adapt Adapted Well
1 5
Did COVID-19 force your organisation to adopt more digital processes?
Yes (52%) No (48%)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
The response data suggests that most professionals and their organisations seemed to be prepared for the
changes and challenges brought on by the Coronavirus pandemic. 52% of respondents conveyed they adopted
new digital processes throughout the pandemic. When asked what technologies and processes they introduced,
common themes included, virtual inspections, automated risk reports, cloud storage, digital signing technologies
such as DocuSign and SignMe, and online meeting and conference technologies such as Zoom and
Microsoft Teams.
Generally, the sentiment among respondents was that the new technologies introduced were largely beneficial,
with many citing that they had almost completely eradicated all paper processes, saving them time, money and
streamlining their workflow.
The Future of the Australian Property Valuation Industry | 2021 10 of 22Market Analysis: State of Play
Do you believe valuation clients are sacrificing quality for lower costs?
Yes (90%) No
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
90% of respondents believe valuation clients are sacrificing quality for lower costs. The prevailing common
theme found among respondents is a general feeling that the valuation profession is being driven by a model that
favours profits over quality.
Do you believe the globalisation of valuation companies has a positive
or negative impact domestically (Australia)?
Positive
23%
29% Neutral
Negative
48%
Whilst most respondents remained neutral, there was almost balanced arguments either side for globalisation
having a positive or negative impact on the Australian valuation industry. When asked to explain answers,
common themes found within responses included a general feel that globalisation could be deemed positive,
so long as the global company continues to use local personnel. On the contrary, responses also found that
globalisation is feared due to the perception it is being driven by a financial model and creates a general ‘race to
the bottom’ attitude within the industry. Most responses agreed that local knowledge surpasses big data and
increased use of technology and automation can ‘miss the mark’ when it comes to comprehensive valuations.
The Future of the Australian Property Valuation Industry | 2021 11 of 22Market Analysis: State of Play
Where do you believe the strongest competition for the valuation industry comes from?
Valuation Firms
(Domestic + International)
Banking + Financial
Institutions
Others
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Almost 95% of respondents believe that the strongest competition for the valuation industry either comes
from other valuation firms (both domestic and international) or from banking and financial institutions. With the
banking and financial institutions representing the largest proportion at 53%. The remaining 5% was made up of
accountants, management consultants, artificial intelligence (AI) and online data collection sources.
Interestingly, the comments regarding competition from both valuation firms and banking and financial
institutions seemed to follow a similar trend of receiving too much pressure to push fees to extremely low
levels, adding to the ‘race to the bottom’ rhetoric. Respondents also commonly cited banks being responsible
for increased pressure to deliver unsustainable turnaround times, and by doing so, creating increased internal
competition amongst valuation firms.
The Future of the Australian Property Valuation Industry | 2021 12 of 22Forward Thinking: Technology
Whether its driving efficiency, improving accuracy or bolstering profits, adopting new technologies can have
significant benefits for professionals, organisations and even entire industries.
Traditionally, it is believed that a true and thorough valuation requires human input. A combination of local area
knowledge and simply being able to pick up on sensory considerations such as visible defects in the building
quality/condition and noise impacts from busy roads has contributed towards a stance that humans could never
be replaced by machinery/technology.
Does your company use Automated Valuation Models (AVMs)?
Yes (25%) No (75%)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Does your company use Automated Valuation Models (AVMs)? (by company size)
Yes
1 Employee
No No
Yes
2-10 Employees
No
Yes
11-20 Employees
No
Yes
21-50 Employees
No
Yes
51-100 Employees
No
Yes
101+ Employees
No
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
The Future of the Australian Property Valuation Industry | 2021 13 of 22Forward Thinking: Technology
Recently, this debate has resurfaced thanks to the rise of Automated Valuation Models (AVMs). AVMs are largely
used by mortgage lenders and provide property valuations using mathematical modelling. They calculate a
property’s value at any given time by analysing several comparable properties and data points.
Do you see AVMs as a positive or negative change to the industry?
Positive
28% Negative
72%
Whilst most respondents do not use AVM’s, there is a clear trend throughout each segment that the larger the
company size, the more likely they are to use AVM’s. Almost four in ten companies with 51 employees or more
are using AVM’s, compared to just one in ten companies with fewer than 50 employees.
Interestingly, when questioned whether respondents see AVMs as a positive or negative change for the industry,
over two thirds of respondents see it as a negative. When asked to explain their answer, many respondents
seemed to agree that whilst AVMs can serve a purpose, ultimately, they are not able to provide an accurate
enough valuation versus what a human could. Therefore, there is a belief that there should be less emphasis
within the industry on using them.
Do you agree or disagree that technology (as a whole) is having a
positive impact on the industry?
Disagree
Unsure
Agree (70%)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
How likely is your company to embrace new technologies?
Unlikely
Unsure
Likely (88%)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
The Future of the Australian Property Valuation Industry | 2021 14 of 22Forward Thinking: Technology
Do you fear automation taking over your role?
Yes (32%) No (68%)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Do you fear automation taking over your role? (by company size)
Yes
1 Employee
No No
Yes
2-10 Employees
No
Yes
11-20 Employees
No
Yes
21-50 Employees
No
Yes
51-100 Employees
No
Yes
101+ Employees
No
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
The Future of the Australian Property Valuation Industry | 2021 15 of 22Forward Thinking: Technology
Do you fear automation taking over your role? (by age group)
Yes
18-24 Years Old
No No
Yes
25-34 Years Old
No
Yes
35-44 Years Old
No
Yes
45-54 Year Old
No
Yes
55-64 Years Old
No
Yes
65+ Years Old
No
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
The Future of the Australian Property Valuation Industry | 2021 16 of 22Forward Thinking: Technology
How many years (if any) do you think it would take for your role to become automated?
100%
Never
90%
16+ Years
80% 11-15 Years
6-10 Years
70%
1-5 Years
60%
50%
40%
30%
20%
10%
0%
18-24 25-34 35-44 45-55 55-64 65+
Age group (years)
Whilst AVMs are deemed to be having a negative impact on the industry, 75% of respondents believe that
technology (as a whole) is having a positive impact. This is shown consistently across answers such as how likely
their company is to embrace new technologies, with almost nine in ten valuers across the board saying it is likely
they will embrace new technology.
Despite a general feeling that technology is having a positive impact, there remains an area of uncertainty
whether the role of a valuer could ever be replaced by automation. Almost one third of respondents expressed
fears that automation could take over their role, the highest proportion fell in companies with more than 51
employees, and within the younger age group brackets.
When asked how many years they believed it would take for the role to become automated, 42% of all
respondents said never, whereas the remaining 58% seemed more divided, with the largest proportion of
responses falling between six and fifteen years. Interestingly, when comparing by age groups, the most definitive
response was found in the over 65’s with over half saying their role could never be automated.
The Future of the Australian Property Valuation Industry | 2021 17 of 22Forward Thinking: Market Conditions
In the past twelve months Australians have lived through one of the biggest economic recessions ever recorded.
We’ve witnessed the enforcement of social distancing measures, an international travel ban, and in some cases,
a complete ban on leaving your home unless it is for essential travel. It may not come as a complete surprise that
amongst all that, the Australian property market has had a turbulent time. As we look to the future and what it
might bring, we asked valuers on what they think the current market looks like and where they see it going.
Do you believe Australia is currently Do you think most homebuyers are
in a property bubble? over capitalising on purchases?
Do you believe property is still Should Australians be able to access their
affordable for the ‘average’ Australian superannuation for property investment?
The Future of the Australian Property Valuation Industry | 2021 18 of 22Forward Thinking: Market Conditions
Do you believe property values will increase, decrease, or stay the same over
the next 6 months in the following cities?
100%
90% Decrease more
than 10%
80% Decrease 5-10%
Decrease 0-5%
70%
Stay the same
60% Increase more
than 10%
Increase 5-10%
50%
Increase 0-5%
40%
30%
20%
10%
0%
Sydney Melbourne Brisbane Adelaide Perth
The majority (63%) of respondents expect a continued growth story for property values across Australia’s capital
cities in the short to medium term. Worryingly, this continued price growth supports the belief found among six
in ten respondents that property is now unaffordable to the average Australian.
Record low interest rates continue to fuel high demand across the Australian property market. This demand
coupled with low supply is driving a ‘fear of missing out’ for many buyers, and as a result, properties are being
snapped up significantly above the asking price within moments of being listed. Over half (55%) of respondents
believe that homebuyers are overcapitalising when purchasing and almost 60% believe Australia is currently
witnessing the makings of a property bubble.
The Future of the Australian Property Valuation Industry | 2021 19 of 22Closing Remarks
I would like to take this opportunity to
thank our members for contributing to this
research project, a joint initiative with The
Search People, one of our many industry
partners. The insights gained will continue
to drive the API’s agenda advocating for
and supporting our property professional
members in their careers and assist shape
the future programming of our initiatives.
It is clear from the responses that
technology, underpinned by the
professionalism, intelligence and high
quality skillsets within our membership
through their expertise, experience, and
ongoing professional development, is
going to continue to drive and shape the
sector. Already we are seeing innovations
to support our members to easily collect,
compare and analyse data from disparate
sources.
Diversity remains a challenge across the
property industry, especially in leadership
roles. The economic benefits of diversity
are clear and, whilst we continue to
see overwhelming effort across our
membership to support diversity in all its
aspects, it will take time for significant
change to flow. Focus and consistency
remain our strongest ally in this area.
Attracting, retaining and developing
the right talent, as in many Australian
business sectors, remains a priority. We
are certainly seeing strong competition
The Future of the Australian Property Valuation Industry | 2021 20 of 22for talent in a post COVID world amongst ensure that our members are well
the majority of our member firms. To feed equipped to respond to changes in
the pipeline to the profession, the API has technology, the macro environment, or
a 2021 programme of targeted national largescale infrastructure investments.
high school and accredited university
engagement, supported by our Young
We look forward to continuing to
Property Professional (YPP) community.
work with all our industry partners
The 2021 roll out of a revised Practical
and members to advance the property
Valuation Training (PVT) module is
profession, shape an association that best
designed to quickly upskill graduates to
serves the sector and maintain focus on
be job ready for their employers. It is
consistently improving its’ future state.
clear that additional pathways to the
profession must also be an area of focus
through 2021.
Amelia Hodge
It is also clear that work life balance
CEO, Australian Property Institute
continues to be an issue within the
industry as a result of both the property
cycle and the timeframes required to
produce the specialised reports that
meet our valuation profession standards
and client requirements. As a strategic
initiative for 2021, it appears timely to
complete a review of the future of the
valuation report to address the challenges
of our time and take advantage of the
opportunities technology presents.
The API continues to work at a local and
international level to support our members
by providing the necessary tools, training
and education ensuring that our members
remain at the forefront of global valuation
practice. Our advocacy agenda, as
well as local, national and international
consultation and collaboration channels
The Future of the Australian Property Valuation Industry | 2021 21 of 22The Search People are a provider of low-cost Australian regulatory information, specialising in the provision of national property, business, consumer and PPSR information. Each day, thousands of property, legal and financial professionals trust The Search People’s digital platform to access timely and accurate information. To find out more about The Search People and to unlock the best prices for your property information, please visit thesearchpeople.com.au The API is regarded as the industry voice for property professionals. On behalf of our members we advocate to media, industry and government stakeholders to create a better regulatory environment for our members and promote growth and sustainability in the property industry. API members are trusted by millions of Australians each year with their homes, businesses, and assets. To find out more about The Australian Property Institute visit api.org.au
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