On Friday 10 March, the South African Institute of Valuers (SAIV) Eastern Cape Branch held its 2023 Annual General Meeting (AGM) and seminar, at the Dolphins Leap Conference & Events Centre in Gqeberha. Featuring a line-up of speakers comprising property industry experts, the event didn’t disappoint and left the attendees yearning for more.
Thys Beukes, director of MRB Property Valuations, presented first on the ‘Ethics in valuations’. He mentioned the need for valuers to conduct themselves in a manner that always enhances the overall image of the valuation profession. “SAIV members should be knowledgeable of and comply with the current laws and regulations in the three spheres of government in which they practice, relating to the valuation profession and in their particular field of practice,” he stated.
SAIV President, Malusi Mthuli, delivered an informative discussion on ‘The changing landscape of the valuation profession’. In his presentation, Mthuli spoke about green buildings and how they have brought a new dimension to valuations. “In the past, my mentor told me utilities cannot form part of the valuation, but guess what? the Eskom crisis happened, and as a valuer, you will be doing an injustice in this market if you don’t identify the relevance of the building’s ability to generate its own energy and recognize the savings that come with that because they do enhance the net income and value,” he added.
Presenting on ‘The challenges related to revenue management in local government’ was Busisiwe Mrawu, a PhD student from the University of KwaZulu-Natal. Mrawu’s presentation was based on a study prompted by an observation of the overwhelming concern on the failure of local government to manage their revenue and subsequent delivery of municipal services to local communities. “In the South African context, research has revealed that municipalities actually rely more on grants than generating their own revenue,” she said.
Ian Forster, Chief Valuer at Nelson Mandela Bay Municipality, discussed ‘Reviews, Objections, and Appeals in terms of the MPRA’. In his presentation, he mentioned that the number one misconception about municipal valuation is that it is based almost entirely on statistical averages, and in most cases, does not reflect the true value of specific properties. He also discussed the top reasons for adjusting municipal valuations. “The top reasons include incorrect data, being grouped in the wrong neighbourhood, economic obsolescence, and unusual size,” stated Forster.
Laurie Pool, Valuer at Suid-Kaap Waardeerders, highlighted in his presentation: ‘Valuation of wind and solar farms that renewable energy projects are set to explode in the next few years. “Here you have, from the outset, to make it clear to the municipalities that the turbines themselves are regarded as plant and machinery and can therefore not be valued as such. It sometimes takes some convincing as most of the wind farm operators tend to boast about the amount of money to be invested in the municipality,” stated Pool.