Addressing the Impending Property Valuer Crisis in South Africa: A Call to Action
Category Property Valuation
South Africa faces a looming crisis in the field of property valuation, with fewer than 1,500 registered professionals in residential and commercial property valuation and fewer than 650 valuer candidates. This scarcity of skilled professionals poses a significant threat to the real estate industry, prompting the South African Institute of Valuers (SAIV) to advocate for urgent measures.
The Current State of Property Valuation:
Dianne de Wet, the president of SAIV, describes the profession of property valuers as the "best-kept secret," emphasizing the thin spread of valuers on the ground. The increasing demand for valuers, coupled with an aging workforce, has raised concerns about a potential crisis in the near future.
The Path to Becoming a Professional Valuer:
De Wet outlines the lengthy process to become a professional valuer, highlighting the need for a four-year BSc degree in Property Studies followed by practical experience under a mentor or SAIV's Mentorship Programme. The process includes online and face-to-face interactions with mentors, practical valuations, and report writing, culminating in the South African Council for the Property Valuers Profession (SACPVP) board exam.
Valuation Considerations:
Property valuers play a crucial role in assessing various factors, including location, zoning regulations, legal aspects, and economic risks. They consider aspects such as vacancy rates, operating costs, and sustainability. The article emphasizes the importance of compliance with regulations, particularly in energy performance, and the implications of non-compliance, including fines and imprisonment.
Advice to Government and Property Owners:
De Wet advises the government to prioritize qualifications and expertise over pricing in selecting service providers through tender processes. She encourages property owners to start the compliance process early, given the substantial fines for non-compliance with energy performance regulations.
PPRA's Stance on Misrepresentations:
The Property Practitioners Regulatory Authority (PPRA) addresses concerns about misrepresentations by estate agents, highlighting the prohibition of making material misrepresentations concerning the likely market value or rental income of immovable property. Property practitioners are discouraged from holding themselves out as property valuation professionals without proper registration with SACPVP.
The shortage of skilled property valuers in South Africa is a critical issue that requires immediate attention. Stakeholders, including government bodies, educational institutions, and the real estate industry, must collaborate to address this impending crisis. By investing in education, internships, and mentorship programs, the country can ensure a sustainable future for the property valuation profession and maintain the integrity of the real estate market.
For a professional valuation or guidance on the process, call Safcom Properties for assistance. You can also browse over Safcom Properties' valuation page for assistance with your understanding.
*This article was adapted from articles that appearing on the PPRA website and the SA Institute of Valuers (SAIV)
Author: Safcom Properties
