Consistency and Comparability of International Property Valuations

This paper investigates whether international property investors can rely on comparability and consistency in international property valuations.A survey was conducted with further secondary data analysis to investigate the drivers, risks and confounding factors affecting global property valuations. Major risks identified were political instability, a comparative lack of transparency in property markets and inferior property rights including titles, rights to minerals, water and land use. The majority of respondents indicated it is only occasionally possible to consistently compare movements in international property values. With regards to financial reporting using International Valuations Standards (IVS), there was no agreement between those surveyed as to whether all IVS reports were consistent in the property asset description, supporting valuation data (including methodology) and definitions of value. The majority of those surveyed conveyed a valuation was not sufficient evidence to support the purchase price of an international property investment without making further investigations.The research concluded that a number of variable factors including valuer education, regulation, benchmarking, ownership rights, legal titles and market transparency affect international property valuation and application of IVS will be inconsistent.