The Institutes (API, PINZ and NZIV) have corrected and clarified wording in the following Guidance Papers;

  • ANZVGP 110 – Considerations When Forming an Opinion of Value When There is a Shortage of Market Transactions
  • ANZVGP 111 – Valuation Procedures – Real Property
  • ANZVGP 112 – Valuations for Mortgage and Loan Security Purposes

The corrections and amendments to these papers were considered by the standards committees in Australia and New Zealand, and the changes were not deemed to change the overall intention of the papers.

The amended Guidance Papers come into effect on 1 January 2025 and the Institutes permit and encourage earlier adoption from the date of publication.

The changes to each paper are outlined below.

ANZVGP 110 – Considerations When Forming an Opinion of Value When There is a Shortage of Market Transactions

Section 1.2 – International Valuations Standards
Deletion of paragraph four which references particular chapters (standards) if the International Valuation Standards which were deleted or relocated as part of the restructure of the IVS for the 2025 edition that comes into effect on 31 January 2025.

Section 3.0 – Basic Principles
Deletion of doubled-up term, “and considered”, in the second paragraph.

Section 6.0 – Effective Date
Update content to reflect the release of the amended version which comes into effect on 1 January 2025.

Download a copy of ANZVGP 110 here.

ANZVGP 111 – Valuation Procedures – Real Property

Section 7.6 – Marketing Period
Change the title of this section from “Selling Period” to “Marketing Period” to align with what this sections relates to, which is that the “Market Value should reflect a typical market period for the class of property …”. A “selling period” includes the total time that a property is offered to the market plus any ‘cooling off’ and settlement period as per the contract. The total selling period is not relevant for the valuation or able to be assessed by the Valuer. The Valuer is only able to assess a typical marketing period which is the “time on the market” up until the contract price is negotiated and agreed between a hypothetical seller and buyer.
In addition an amendment to the wording to change “for the class of property in the current market conditions” to “for the class of property under the prevailing market conditions”. It is the market conditions as at the relevant date that is important, and this may not necessarily be the current market, as in the case of a retrospective valuation.

Section 14.0 – Effective Date
Update content to reflect the release of the amended version which comes into effect on 1 January 2025.

Download a copy of ANZVGP 111 here.

ANZVGP 112 Valuations for Mortgage and Loan Security Purposes

Section 5.3 – Market Value
Delete the word “selling” and replace with “marketing” in the last paragraph so that it relates to “an estimated marketing period”. A “selling period” includes the total time that a property is offered to the market plus any ‘cooling off’ and settlement period as per the contract. The total selling period is not relevant for the valuation or able to be assessed by the Valuer. The Valuer is only able to assess a typical marketing period which is the “time on the market” up until the contract price is negotiated and agreed between a hypothetical seller and buyer.

Section 5.10 – PropertyPRO Pro-Forma Reports (Australia)
Replace the term “PropertyPro” with “PropertyPRO” in the second paragraph to reflect the tile of this section and the name of the product.

Section 9.0 – Effective Date
Update content to reflect the release of the amended version which comes into effect on 1 January 2025.

Download a copy of ANZVGP 112 here.

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