SFO check on land valuers

SFO director Adam Feeley says there is a small number of property valuers who are undermining confidence in the profession. Photo / Dean Purcell

Property valuers have defended their sector after the Serious Fraud Office issued a warning about investing in over-inflated real estate.

Nicki Bilbrough, Institute of Valuers president, said the SFO knew of a small number of valuers who undermine confidence in the profession.

"However, any incidence at all is of significant concern to us as it represents a breach of our standards.

"We look forward to the opportunity to speak to the SFO to understand the specific cases being referred to, that will enable us to investigate them and take the required action," she said.

Adam Feeley, SFO chief executive, first raised concerns. "In recent weeks we have concluded investigations involving property valuations where we have been disappointed to see investors making bad investment decisions based on information which can only, at best, be described as optimistic values.

"It is imperative that investors are made aware of the underlying assumptions on which the valuations are based," Feeley said.

Bilbrough said there were a low level of complaints raised nationally, particularly relative to the many thousands of valuations completed annually in New Zealand.

She said the institute was talking to the industry to establish a model of accreditation to ensure top national standards.