Australian Property Institute eNews

1. e-news THE LATEST PROPERTY NEWS
ISSUE 09-1 | January 2009
By-Law Amendments
CONTENTS
Members are advised that amendments and additions
By-Law Amendments .................................................................. 1
have been made to the following By-Laws (text below in
Provisional Membership: Rules of Conduct ....................... 4 bold refers to words inserted);
Marketing CPV ................................................................................. 4 18.2.2 Every applicant for admission as a Provisional
Member must:
API Endorsed Courses ................................................................. 4
a. be of good character and repute;
General Market Commentary ................................................ 5 b. have passed any examination and tests required by
the National Council; or
Perth 2010: International Property Conference ............ 7
c. have completed an Institute Endorsed Course or
degree equivalent.
d. have completed an Institute approved partially
qualifying degree. Applications submitted will be
referred to the Divisional Membership Committee,
which will satisfy itself as to whether or not
the applicant has a period of at least two years
Approved Professional Experience gained within
CONTACT DETAILS the four years immediately prior to the date of
application.
API e-news is produced by the Australian
Property Institute National Office. e. have completed an Institute approved overseas
qualification other than an Institute approved
Editor: National Communications Manager
partially qualifying degree, with less than five years
Tel: 02 6282 2411 Approved Professional Experience. Applications
submitted will be referred to the Divisional
Fax: 02 6285 2194
Membership Committee, which will satisfy itself as to
Email: national@api.org.au
whether or not the applicant has a period of at least
6 Campion Street two years Approved Professional Experience gained
Deakin ACT 2600 within the four years immediately prior to the date
www.api.org.au of application.
f. Applicants who have completed a partially
qualifying engineering degree will satisfy the
requirements of 18.2.2c
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19.1 Certification of Members 19.4.3 The certification of Certified Property Practitioner
(CPP) is available only to the membership classes
19.1.1 National Council may approve the certification of
of Life Fellow, Fellow or Associate.
Members. A Member may hold more than one
19.4.4 Members gaining the certification of Certified
certification.
Property Practitioner (CPP) in the field of
(Reference to “Certified Practicing” has been
Education, Law or Finance will use the certification
removed.)
CPP(Ed), CPP(Law) or CPP(Fin) respectively.
19.3 Certified Practising Valuer
19.5 Certified Funds Practitioner
Previous By-Law Sections 19.3.1, 19.3.2 and 19.3.3
19.5.1 All applicants for Certified Funds Practitioner must
have been deleted. (Sections 19.3.3, 19.3.4 & 19.3.5
satisfy the following requirements:
have been renumbered 19.3.1, 19.3.2 & 19.3.3
a. have a recognised academic qualification as
respectively.)
determined by National Council;
19.4 Certified Property Practitioner b. two years Approved Professional Experience in
funds or asset management or analysis gained
19.4.1 All applicants for Certified Property Practitioner
within the four years immediately prior to the date
must satisfy the following requirements:
of application, or in the case of a partially qualifying
a. have a recognised academic qualification as
degree, have an aggregated period of at least three
determined by National Council;
years Approved Professional Experience in the five
b. two years Approved Professional Experience in the years immediately prior to the date of application;
relevant field of either;
c. successful completion of a professional interview in
i Property & Facilities Management, or funds and asset management.
ii Sales, Leasing & Negotiation, or 19.5.2 In respect of rule 19.5.1(b) above, the National
Professional Board shall have discretionary power
iii Property Research, or
concerning these timings, and may consider
iv Property Consultancy, or
special case applications for certification where
v Property Education, or the minimum professional experience timings fall
outside these guidelines.
vi Property Law, or
19.5.3 The certification of Certified Funds Practitioner
vii Property Finance,
(CFP) is available only to the membership classes
viii Corporate Real Estate,
of Life Fellow, Fellow or Associate.
gained within the four years immediately prior to
19.6 Certified Development Practitioner
the date of application, or in the case of a partially
19.6.1 All applicants for Certified Development
qualifying degree, have an aggregated period of at
Practitioner must satisfy the following
least three years Approved Professional Experience
requirements:
in the five years immediately prior to the date of
application;
a. have a recognised academic qualification as
determined by National Council;
c. successful completion of a professional interview in
the relevant field.
b. two years Approved Professional Experience in
property development gained within the four
19.4.2 In respect of rule 19.4.1(b) above, the National
years immediately prior to the date of application,
Professional Board shall have discretionary power
or in the case of a partially qualifying degree,
concerning these timings, and may consider
have an aggregated period of at least three years
special case applications for certification where
Approved Professional Experience in the five years
the minimum professional experience timings fall
immediately prior to the date of application;
outside these guidelines.
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study or other activities will satisfy the total CPD
c. successful completion of a professional interview in
requirement.
the relevant property development field.
20.9.2 Approved courses of formal study can be those
19.6.2 In respect of rule 19.6.1(b) above, the National
offered by tertiary institutions, or professional
Professional Board shall have discretionary power
associations or Industry Associations. Approved
concerning these timings, and may consider
courses of formal study will generally lead to awards
special case applications for certification where
such as Certificates, Diplomas, Associate Diplomas,
the minimum professional experience timings fall
Advanced Diplomas, Degrees, Graduate Certificates,
outside these guidelines.
Graduate Diplomas, Masters’ Degrees or Doctorates.
19.6.3 The certification of Certified Development
(Reference to specific organisations in Section 20.9.2 has
Practitioner (CDP) is available only to the
been removed.)
membership classes of Life Fellow, Fellow or
Associate.
29.6 Use of Certifications and Designations
(The existing By-Law Section 19.4 Designation of Residential
29.6.1 The certification “Certified” may be part of the
Property Valuer has been renumbered 19.7.)
Member’s post-nominals on business cards but must
20.9 Formal Qualifications be included in full on all other correspondence and
business stationery.
20.9.1 Members undertaking approved courses of formal
study in topics outlined in Section 20.7.1, or a A complete copy of the revised By-Laws is available on
the National Website at www.api.org.au under the API
business/management course resulting in 20 hours
(or in the case of pro-rata points the number of National/Governance tab.
points required) of lectures, tutorials, assignments,
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Provisional Membership reasonable grounds. Supervision does not require
Rules of Conduct property (unless otherwise stated).
2.6 (a) A Provisional Member, when co-signing a report
National Council has recently endorsed the inclusion of (other than for a residential property as defined in
additional Rules of Conduct governing the conduct of 2.5 above) must state that they are a Provisional
Member of the Australian Property Institute (fully in
Provisional Members. All of the Institute’s Code of Ethics
words).
and Rules of Conduct have been Authorised by the ACCC.
(b) A Provisional Member, who holds the designation
All Members should make themselves familiar with these
of Residential Property Valuer must state that they
rule changes which are as follows;
are both a Provisional Member of the Australian
Property Institute and a Residential Property Valuer
1.23 A Member must not co-sign a valuation undertaken
(both fully in words) when signing a report for
by a Provisional Member, other than a valuation to
Residential Property as defined in 2.5 above.
which Rule 1.24 applies, unless;
A complete copy of the Code of Ethics and Rules of Conduct
governing the professional conduct of members is available
Practicing Valuer;
on the National Website at www.api.org.au under the API
National/Governance tab.
to value based upon reasonable grounds;
Marketing CPV
signature, to be the primary signatory; and
Members are advised that National Council has approved
the CPV marketing strategy proposed by the CPV Marketing
Taskforce, including their recommendation to adopt a square
1.24 A Member must not co-sign a valuation of Residential
bracketed logo.
Property (as defined in Rule 2.5) undertaken by a
Provisional Member who holds the designation of
Residential Valuer, unless;
Practicing Valuer; State/Territory Divisions will be briefed on the campaign
before the end of January when CPV members will have
the opportunity to become involved. The full force of the
the Provisional Member is authorised by Rule 2.4 to
campaign will commence early in 2009.
undertake the valuation;
supervision of the Member.
API ENDORSED
1.25 For the purposes of Rule 1.24, supervision requires
COURSES
that the supervising Member has reviewed the
valuation and working papers prepared by the Over 2008 the Institute re-endorsed a number
Provisional Member and, based upon, such review
of courses, a full schedule of endorsed courses
and appropriate questioning of the Provisional
is available on the National Website at
Member obtained reasonable satisfaction that the
www.api.org.au under Careers/Education/
value opinion contained in the valuation has been
reached by the Provisional Member based on Endorsed Degrees & Courses.
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by Alan Hyam, Third Edition – Part
General Market Commentary II, Chapter 3, page 80 – Absence of
Comparable Sales.)
consideration to the asking prices of
In response to requests for comment
In recent times there has been
similar properties available for sale,
and guidance to API members in
commentary from some members
providing that appropriate comments
relation to the current economic
suggesting there is now a blurring of
are made to inform their clients on
conditions and the impact on the the lines between the values achieved
issues that might include, amongst
property market, the National for properties sold where the normal
others, the length of the marketing
Professional Board provides the definition of Market Value would have
period, how the listed property
following comments which members been said to apply and those properties
compares with the property being
sold under “Forced Sale Conditions”.
valued and how the asking prices of
may wish to consider when providing
The National Professional Board also
similar properties compare with the
advice to their clients.
acknowledges that in some markets, the
historical settled sales data.
It is now well documented that the “Normal Selling Period” of a property is
fallout in global financial markets likely to have increased significantly.
‘ Any necessary
has had a rapid and in many cases
Members should review their client’s
an unexpected negative impact on
adjustments to instructions carefully, particularly in
advanced economies around the world.
relation to the requirement by some
historical market lenders for the “Market Value” of a
At Australian Federal Government
property to be assessed on the basis
level, the current economic conditions evidence need
of what may now be an unreasonably
are being referred to as the “Global
to be considered short selling period.
Financial Crisis”.
’ The National Professional Board
carefully...
These factors have resulted in the
hopes that lenders will consider the
Federal Government downgrading
implications of their instructions to
In these circumstances, it may also be
economic growth forecasts and
valuers and acknowledge the changing
appropriate for valuers to consider the
implementing strategies that they hope
market circumstances, which are
use of market evidence, which might
will stave off recessionary pressures.
resulting in longer “Normal Selling”
include the use of unsettled sales as a
The Reserve Bank has also acted by
periods in many sectors of the
guide to the Market Value of a property.
reducing interest rates in an attempt to
property market.
stimulate the economy.
When this analysis occurs, the valuer
This understanding will avoid situations
should attempt to gain as much
The valuation of many asset classes,
where members cannot reasonably
information as possible on the stage
including property, is particularly
comply with instructions to value
of the contract negotiations, qualify
challenging at this time, due in part to a
a property with reference to the
the report appropriately, provide the
reduction in the number of comparable
accepted definition of “Market Value”
client with advice on the weighting
sale transactions. Any necessary
and still comply with other parts of the
given to this evidence and comment on
same instruction that may also require
how the evidence relates to the actual
evidence need to be considered
the assessment to reflect a specified
historical settled sales data.
carefully and appropriate commentary
selling period, which may be too short
included in valuation reports.
to be considered “normal” in the
It is also recommended that valuer
current economic climate. This could
members re-acquaint themselves with
Where members are faced with
potentially result in an assessed value
the long established court precedent
the task of valuing a property in a
that more closely reflects the definition
relating specifically to valuing properties
market sector where there are limited
of “Forced Sale Value”, rather than
in markets where there is limited
numbers of comparable “Settled
“Market value”.
transaction evidence. (See The Law
Sales” transactions, the Board believes
Affecting the Valuation of Land in Australia
that members should give careful CONTINUED
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In recent months, the National
Australia’s most 9th Annual
Professional Board has received
feedback from a number of lenders
comprehensive
The Four Seasons
highlighting the importance that they
property
place on the valuers assessment of
financing forum
the risk ratings in a standard “Property
PRO” valuation report.
20 CASE STUDIES
Hear From Property Leaders, including;
The National Professional Board
strongly suggests that API members Malcom Tyson,
Refinancing Debt &
Managing Director –
conducting valuations for mortgage Reducing Cost of
Industrial and State Chief
Funding
Executive – NSW,
security purposes, review the Colliers International
Alternative Financing
definitions relating to risk ratings & Investment Options
Matthew Chun,
Group Chief Executive – Local and Global
contained in the latest publication Officer,
Property
of the Australia and New Zealand Becton Property Group
Securitisation &
Valuation and Property Standards George Nicholas,
Property Derivatives
Director - CBRE Hotels,
(formerly Professional Practice), in CB Richard Ellis Unlock the Financial
Value of your
particular Section 16.1, which is titled Matthew Lawrence,
Hotel,
Property Assets
Director -
Residential Valuation and Security Capital Solutions –
Pricing Property
Property Group,
Assessment Pro-Forma supporting ANZ Investment Bank Property Sustainability
memorandum. This document can be and ‘Green Buildings’
Andrew Meakin,
found at www.api.org.au. Chief Executive Officer,
Surviving in the
Austcorp Funds
current market
Management
Valuers should continue to make In-depth Analysis of
John Talbot,
Sydney
Various Property Asset
Australian Head of Capital
appropriate commentary surrounding Markets, Classes Viability
the ratings selected in their reports. Jones Lang LaSalle
Jane Holdsworth, Media Partners:
Chief Executive Officer,
With respect to the commercial Retirement Village
market and looking forward into Association
2009, we consider the momentum
23 rd – 25 th February 2009
in property yields remains upwards, REGISTER TODAY!
despite the recent and further www.TonkinCorporation.com
potential interest rate cuts by the RBA. Ph: (02) 9224 6000 Fax: (02) 9224 6099
This yield softening is likely to be a Email: registrations@TonkinCorporation.com
result of further downgrading of cash
flow fundamentals including, but not
limited to, declining rental growth and
increasing incentives, as a result of a
weakening occupier / tenant market.
The National Professional Board
believes that API members are the
most highly qualified and best placed
property professionals to provide the
expert advice required in these volatile
circumstances and should continue to
liaise with and inform their clients on A TONKIN
changing market circumstances where PREMIUM EVENT
appropriate
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7. e-news PAGE | 7
Perth 2010
International Property Conference
21st – 23rd April 2010 | Perth, Western Australia
To register your interest to attend the Conference as a
The Australian Property Institute and the Property Institute
delegate, sponsor or trade exhibitor, or for information
of New Zealand invite property professionals from around
regarding the Call for Abstracts please email:
the globe to Perth for the 2010 International Property
Conference. CONFERENCE SECRETARIAT
EECW Pty Ltd
Perth’s geographic location presents an ideal conference
location. Western Australia represents nearly one third
of the Australian continent and boasts a welcoming
and accessible capital city and a state wide landscape as
diverse as it is vast, providing delegates and accompanying
PO Box 749, Wembley WA 6913
visitors with spectacular touring opportunities.
Tel: +61 (0) 8 9389 1488 Fax: +61 (0) 8 9389 1499
The API/PINZ bi-ennial international property conference
Email: eecw@eecw.com.au
has established a reputation as a “must attend” event on
the calendars of property professionals.
We look forward to welcoming you to Perth in 2010.
LEADING THE PROPERTY PROFESSION