The Namibia Competition Commission will continue to investigate if there are further unfair practices within the property valuation industry.
The commission took this stance after it discovered that there are structural barriers that make it hard for property valuers to enter the market.
In a press statement issued yesterday, the NCC said it received complaints from the property valuation industry, alleging that the four commercial banks: Bank Windhoek, First National Bank, Nedbank and Standard Bank are market participants in the property valuation market, who sometimes make use of internal valuers to determine estimated values of assets in property transactions. It is, however, alleged that these commercial banks disregard valuations that are done by external valuers, who are not part of the four commercial banks' property valuers' panels. The complaints further alleged the current market conditions that valuers compete in are not competitive, as they do not allow for fair competition, and there exist barriers to entry for newly graduated property valuers. It was further alleged that the barriers to entry exist through the requirements that valuers must meet to be placed on some of the bank valuers' lists.
Some banks require prior experience, and this makes it difficult for newly qualified valuers to enter the market, as this enlisting is the gateway to acquiring the required experience.
The banks allegedly reject valuations conducted by valuers who are not employed at the respective banks or on their list of "approved property valuers".
"Commission assessed the complaint and notes that there exist structural barriers to enter the market by virtue of the absence of the establishment and operationalisation of the Namibian Council for the Property Valuers Profession in terms of the Property Valuers Profession Act No.7 of 2012," reads the statement.
Thus, the commission has since approached the Minister of Agriculture, Water and Land Reform with an advisory opinion, as it continues "monitoring developments in the industry for possible anticompetitive practices, which may thereafter come under competition law scrutiny".
