API on committee to create global property standard

Allen Crawford, an API Queensland Divisional Councillor, was one of 19 real estate experts selected from around the world to join the International Property Measurement Standards Coalition’s (IPMSC) Standards Setting Committee (SSC)

An Australian Property Institute (API) Fellow has been elected Vice Chair of an international body that will develop a global standard for measuring property.

Allen Crawford, an API Queensland Divisional Councillor, was one of 19 real estate experts selected from around the world to join the International Property Measurement Standards Coalition’s (IPMSC) Standards Setting Committee (SSC), which will determine the global standards.

The IPMSC was established at a meeting hosted by the World Bank in Washington earlier this year, where it was announced that the API was a member.

The SSC includes experts with first-hand knowledge in 50 countries across five continents. It will act independently and is tasked with the job of drafting and consulting industry on a global standard measurement methodology.

Committee members include academics, real estate fund and asset managers, residential professionals, valuers and specialists in development and construction.

The Mr Crawford said he was privileged to be included in the select group and was confident that it would succeed in devising a world-class standard.

“The committee has been set the challenging task of drawing together the intelligence that has gone before us across the world over the past decades, and then creating what must be regarded as the world’s best practice for the measurement of buildings,” Mr Crawford said.

“There are many standards in existence across the world but this has been largely uncoordinated. We will know that we have succeeded when the new standard is embraced globally by the property industry.”

Mr Crawford said that the way property assets – such as office, residential, retail and industrial – were currently measured varied considerably from country to country. The wide variety of methods made it difficult for global investors and occupiers to accurately compare space.

With the implementation of a global property measurement standard, properties would be consistently measured, creating a more transparent marketplace, greater public trust, stronger investor confidence and increased market stability.

The standard would significantly affect the way property was measured, leading to improvements in valuation and financial reporting consistency across international markets.

SSC Chair Max Crofts said that property was a global business for international investors, corporate occupiers and their advisers, but floorspace measuring practices varied from country to country and even between markets in the same country.

“Encouraged by our first meeting at the World Bank, we intend to create standards of measurement that will not only complement international financial reporting and valuation standards but also enable the collection and use of reliable data across worldwide markets,” Mr Crofts said.

The SSC will start work on the drafting of the new methodology immediately and aims to have a draft ready for widespread consultation in early 2014.

The SSC comprises nominated representatives of the IPMSC. The 19 SSC members are:

• Max Crofts, Commonwealth Association of Surveying & Land Economy (UK) – Chair
• Allen Crawford, Australian Property Institute (Australia) – Vice Chair
• Alexander Aronsohn, RICS (UK) – Secretary
• Will Chen, China Development Bank (China)
• Anthony Gebhardt, South African Property Owners Association (South Africa)
• Kent Gibson, Capstone Property Management (USA)
• Prof. Marc Grief, Society of Property Researchers (Germany)
• Liu Hongyu, China Institute of Real Estate Appraisers and Agents (China)
• Prof. Dr Ting Kien Hwa, Centre of Real Estate Research, Universiti Teknologi MARA (Malaysia)
• Luke Macintosh, APREA (Singapore)
• Scott McMillan, International Monetary Fund (USA)
• Howard Morley, NZ Realtors LTD (New Zealand)
• Frederic Mortier, Council of European Geodetic Surveyors (Belgium)
• Sara Stephens, Appraisal Institute (USA)
• Peter L. Stevenson, Stevenson Systems, Inc (USA)
• Nicholas Stolatis, TIAA-CREF (USA)
• V. Suresh, HIRCO Developments (India)
• Koji Tanaka, Mitsui Fudosan (Japan)
• Dr. Piyush Tiwari, RICS School of Built Environment, Amity University (India)