Global property standard to be created by expert committee
08 August 2013
News, Asia, Global
By Asia Asset Management
This week the International Property Measurement Standards Coalition (IPMSC), of which the Asia Pacific Real Estate Association (APREA) is a foundation member, selected 19 real estate experts from around the world to join its standards setting committee to develop a global standard for measuring property.
The standards setting committee 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.
Currently, the way property assets – such as office, residential, retail and industrial – are measured can vary considerably from country to country. With so many different methods in use, it makes it difficult for global investors and occupiers to accurately compare space.
With the implementation of a global property measurement standard, properties will be consistently measured; creating a more transparent marketplace, greater public trust, stronger investor confidence, and increased market stability. The standard will have a significant impact on the way property is measured, leading to improvements in valuation and financial reporting consistency across international markets.
Standards setting committee members include academics, real estate fund and asset managers, residential professionals, valuers, and specialists in development and construction. “The adoption of different measurement standards across the world adds unnecessary complexity to the task of investing globally. APREA supports this initiative as it will result in uniformity of product and certainty of measurement, and this will inspire confidence amongst cross country fund managers to invest locally,” commented Lim Swe Guan, chair at APREA.
“Property is a global business for international investors, corporate occupiers and their advisers, but floor space measuring practices vary 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,” noted Max Crofts, chair, standards setting committee.
“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”. There are many standards in existence across the world but these have been largely uncoordinated. The committee members are focussed on ensuring the standard is the world’s best practice. We will know that we have succeeded when the new standard is embraced globally by the property industry,” said Allen Crawford, vice chair, standards setting committee.
The standards setting committee will start work on the drafting of the new methodology immediately and aims to have a draft ready for widespread consultation in the early part of 2014.
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