A new report from property data firm Cotality has found that digital assessments are fast becoming the dominant method for residential mortgage valuations in Australia, even as industry leaders warn that physical inspections remain irreplaceable in complex cases.
The report, published Wednesday, examines how advances in data infrastructure have shifted the profession away from its longstanding reliance on on-site inspections, which had defined Australian residential valuation for generations. It notes the change has not altered the standard of assessment or the qualifications required to undertake one – only the methods used to gather and validate evidence.
Australia’s residential property market is valued at more than $12 trillion, with mortgage brokers facilitating more than 77% of new residential lending.
The updated International Valuation Standards, effective January 2025, reinforce that sufficient investigation can be achieved through inquiry, research, and analysis rather than physical inspection alone. Professional indemnity insurers and Lenders Mortgage Insurance providers have both extended cover to hybrid assessments, lending formal credibility to digital workflows within Australia’s lending risk frameworks.
Carl Pinto, general manager of banking and valuation solutions at Cotality AU/NZ, said the evolution had preserved rather than diminished the valuer’s role. “The digital evidence available to a valuer today, coupled with process innovation, has enabled a new wave of highly reliable digital assessments that include professional indemnity and the same standard of rigour from the valuer, preserving their critical role in the valuation process,” he said.
Opteon, one of Australia’s largest residential valuation providers, estimates around 15% of its residential mortgage instructions are now completed digitally. Managing director Scott Chapman said the shift had made the analytical core of valuation work more visible. “Our valuers are spending more time working across data sets, cross-referencing evidence, and applying their market expertise without the need for an inspection. That analytical core has always been the most important part of the role. Digital workflows have just made it more visible,” he said.
Herron Todd White managing director Drew Hendrey cautioned that fewer site visits could erode institutional knowledge over time. “Fewer physical inspections means fewer verified, first-hand data points for valuers to rely on when completing digital assessments. It also reduces exposure to local markets, with the potential to erode institutional knowledge and create gaps in the development of future valuers,” he said.
Australian Property Institute CEO John Winter echoed concerns about consistent adoption. “The challenge, as always, is consistency of adoption across the profession, particularly among smaller practices. We need to make compliance achievable, not just aspirational,” he said.
