The Namibian Competition Commission (NACC) says structural barriers exist for newly qualified property valuers to enter the market due to the absence of the Namibian Council for the Property Valuers Profession.
The NaCC in a media statement said it received a complaint from a group of property valuers who alleged that four commercial banks’ actions create barriers to entry for external valuers who are not part of these banks’ property valuers’ panels.
The complaint alleged that the current market conditions are not conducive to fair competition, amongst others because banks require property valuers to have prior experience before they can be listed on their list of approved valuers.
“This makes it difficult for newly qualified valuers to enter the market as this enlisting is the gateway to acquiring the required experience,” the NaCC said.
It further said the absence of the council has led to the banks employing their own quality assurance measures as risk mitigation when it comes to property valuations. These measures are in the form of enlistment requirements that independent property valuers must comply with in order to perform property valuation work on behalf of the banks.
Once operationalised, the council will serve as a central industry requirements determinant, in terms of both registration and designation of property valuers, as well as the education requirements which will be applicable to all prospective valuers.
“In the absence of the council, market participants are principally the determinants of such requirements, which vary according to each market participant, and as such are alleged to currently impede the growth and entry into the said market,” it read.
The competition commission said it will be monitoring industry developments and that it reserves the right to launch a formal investigation if it finds any evidence of anti-competitive practices.
The commission said it has also, by way of an advisory opinion, engaged the Minister of Agriculture, Water and Land Reform as the custodian of the Property Valuers Profession Act No.7 of 2012, with a proposal on how to provide effective redress.
Source: The Namibian Press Agency