A Critical Investigation Of Residential Valuations Practices In Namibia: A Case Study Of Windhoek

The increase in globalization of businesses and foreign markets has led to the introduction of International Standards in every business sector including the valuation profession. Consequently, the cross-border investments in the financial markets has further fueled the need for universal accepted standards in reporting property values. International Valuations Standards (IVS) are standards that governs the valuation practice worldwide. The overall purpose of global standards is to engender confidence and public trust in the valuation process by creating a framework for the delivery of credible valuation opinions by suitably trained valuation professionals acting in an ethical manner. A standardised global practise simplifies investors’ decision-making on international investments. International standards, however, need to be aligned with local valuation regulations that regulate the valuation professional practices at country level consistent with International norms. Given the importance of International Standards to the valuation profession, this research investigates a) how current practices of residential property valuation in Namibia adhere to International Valuation Standards on professional and performance standards centred on competence, knowledge, ethics, conduct and objectivity and b) Explore the consistency in valuation opinions reported by all valuers in the market place underpinned by consistent application of recognised valuation approaches. The preliminary results from empirical data from desk and field surveys indicate that local valuation practices seem not to be aligned with international valuation standards. The main reasons seem to be the absence of local valuation regulations and the dormant Valuers’ Council to enforce global standards at local level. Hence, the credibility of valuation opinions and integrity of all valuers in Namibia seems to be challenged. The findings of the study are important to all stakeholders in the Namibian property market in order to identify risks involved in the misalignment of local and international valuation practices in a market that is expected to adhere to international reporting standards.