The escalation in property prices, including those for residential land and agricultural areas, remains a concern for both the government and the public.
This issue has been exacerbated by the lack of regulation in property valuation services.
To address this, the newly established National Council for the Property Valuers Profession will oversee the registration of property valuers and enforce industry best practices.
Over the years, price escalations in Namibia have been attributed to poor property services and the lack of a regulatory body, leading to unregulated valuation services and rising malpractices.
Appointed by Minister of Agriculture, Water, and Land Reform, Carl Schlettwein, the National Council for the Property Valuers Profession will ensure accurate property valuations with appropriate frameworks.
The minister emphasised that enforcing ethical standards and requiring all registered valuers to adhere to them will tackle issues like overpricing and malpractice.
The Council will also oversee registration applications, set affordable fees, ensure educational programs meet industry standards, and establish a Code of Conduct and disciplinary measures.
This aligns with the Property Valuers Profession Amendment Act, ensuring that qualified valuers provide services through formal registration.
"The meaning of having professional valuers is basically twofold; it means that you cannot just go to the public and say, I am a valuer of properties. You are not a valuer if you are not registered. You must register. So if anyone comes to you and says, I can value your property, please ask for the certificate of registration because if they don't have that, don't trust that person because that's where the malpractice started. Secondly, since they are now a profession, their fees are protected, established by the statute, so they can't just ask you for anything; it is a structure, a regulation that the fee is protected."
As of December 2024, the real estate industry contributed approximately 4.8% to the GDP.
In terms of mortgage exposure, house loans make up 50.4% of total private sector loans, with 39% extended to households and about 12% to businesses.
Currently, there's a lot of exclusion in the valuation sector; we will ensure that there are standards and criteria. We will implement and introduce new criteria and ensure that there is inclusivity where valuations are conducted and look into the conduct of these valuers, and it will be dealt with professionally," said Council member Johanna Shikongo.
Minister Schlettwein emphasised that the Council's role is crucial in transforming the property valuation industry, fostering professionalism, and ensuring that property valuation practices are reliable and transparent.