Value Australia is an innovative new collaborative project which aims to address the challenges with Australia’s current approach to property value assessment through automated, transparent and interactive property valuations.
Land and property is the nation’s single largest asset class. The valuation of these assets is used to collect land tax, inform infrastructure investment and lending for homes, along with modelling insurance risk and investment returns. Property tax currently contributes $50 billion p.a. across Australia, supported by an estimated $300 million p.a. of costs to government. Services for banking and finance are delivered by the property valuation industry, costing over $350 million, of which more than 75% is wages.
The current labour-intensive approach to land and property value assessment results in expensive, subjective, slow and often out of date valuations for property, particularly for urban fringe (peri-urban) and regional land. These shortcomings coupled with the emerging cyber threats to the underpinning valuation data infrastructure, require a collaborative approach between industry, government and researchers to develop secure, scalable, and commercially viable solutions.
The consequences of subjective valuations include sub-optimal and inconsistent planning, forgone tax revenues, disputed valuations, inconsistent lending and insurance risk decisions, and the inability to capture land value uplift to fund transformational infrastructure.
The Value Australia team is an ideal collaborative mix, bringing together research (FrontierSI, UNSW), industry (Commonwealth Bank of Australia, Omnilink), State Government (Office of the NSW Valuer General) and local council (Liverpool City Council). The project received support through the Federal Government Cooperative Research Centre Project (CRC-P) grants.
Value Australia will integrate research, significant data assets and state-of-the-art analytics and artificial intelligence to deliver secure digital valuation models and tools covering a broad range of land and property types across Australia and overseas. The result aims to be an efficient and accurate land and property valuation product. The valuation of these assets is used to collect land tax, inform infrastructure investment and lending for homes, along with modelling insurance risk and investment returns.
Value Australia builds on two years of pilot work across metropolitan Sydney and Brisbane through the award-winning RAISE project which has developed a range of Automated Valuations Models (AVMs). Value Australia will expand on this base to produce a national suite of data and software products. This includes:
- Open, cloud-based architecture to combine data, models, and visualisation
- An interactive scenario explorer ‘toolkit’
- Collaborative visualisation methods
- Applying the toolkit to automated valuation modelling
- Using the toolkit to land value uplift modelling
Value Australia will create scalable, efficient, secure, and accurate tools that can respond to a variety of land and property types and uses across Australia, with export market potential. The automated valuations will tackle industry identified shortcomings including:
- Sub-optimal and inconsistent urban and regional planning
- Forgone tax revenues
- Disputed valuations
- Inconsistent lending and insurance risk decisions
- The inability to easily capture land value uplift to fund infrastructure
Fast, secure and accurate land and property valuations are critical for land management, planning, finance and risk decisions. Property valuation services to the banking and finance sector cost over $350 million a year, and it is estimated that more than 75% of valuation costs are wage related. This project will enable substantial financial savings for the sector.
To learn more, contact FrontierSI at firstname.lastname@example.org or connect with Project Manager, Fernando Matsunaga at email@example.com.