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Australian Property InstituteAustralian Property Institute

6 Campion StreetDeakin ACT 2600

Telephone: 02 6282 2411Facsimile: 02 6285 2194

Email: [email protected]

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ReportAnnual 2010

AUSTRALIAN PROPERTY INSTITUTE ANNUAL REPORT 2010 PAGE 1

Annual Report 2010

AUSTRALIAN PROPERTY INSTITUTE ANNUAL REPORT 2010PAGE 2

Leading the Property Professions

This report is published by the Australian Property Institute.

Comments or inquiries should be directed to:

The National Director

Australian Property Institute

6 Campion Street

Deakin ACT 2600

Telephone: 02 6282 2411

Facsimile: 02 6285 2194


©2011, Australian Property Institute

ABN: 49 007 505 866

Design and Layout:

Iain Smith, National IT Administrator, Australian Property Institute



API’s Vision .............................................................................................................................................. 4

API’s Goals .............................................................................................................................................. 4

National President’s Report ...................................................................................................................... 5

Communications ..................................................................................................................................... 8

Technology & Online Media ...................................................................................................................... 9

Education .............................................................................................................................................. 10

Finance ................................................................................................................................................. 11

International ........................................................................................................................................... 12

Professional and Technical Standards .................................................................................................... 13

Committees & Taskforces ...................................................................................................................... 16

Thanks and acknowledgements ............................................................................................................ 19

Divisional Highlight Reports .................................................................................................................... 20

API Overview ......................................................................................................................................... 27

API Organisational Structure .................................................................................................................. 30

API National Office ................................................................................................................................. 31

API Divisional Offices ............................................................................................................................. 32

API Membership .................................................................................................................................... 34

In Memoriam ......................................................................................................................................... 35

API Organisational Chart ........................................................................................................................ 36

Financial Report ..................................................................................................................................... 38

Notes .................................................................................................................................................... 66

Contents



The Australian Property Institute’s vision is to be the premier property

professional organisation in Australia.

API’s Goals To promote the Australian Property Institute as the premier property

professional organisation in Australia.

To encourage all property professionals to join the API.

To enhance the professional standards of members.

To earn and maintain the respect of the community through the

professional credibility of the membership.

To improve the profile and influence of the Institute.

To encourage the provision and maintenance of the highest standard of

property education in Australia.

To ensure the Institute produces the leading property journal in

Australasia, the Australia and New Zealand Property Journal, to educate,

enlighten and challenge the property profession.

API’s Vision

API Vision & Goals


Leading the Property ProfessionsNational Presidents Report

2010 Highlights

On behalf of National Council I am pleased to

present the Annual Report of the Australian Property

Institute for the year ending 31 December 2010.

The year 2010 saw a number of key strategic

initiatives finalised and implemented and a number

of exciting projects commenced, including;

Establishment of Strategic Initiatives,

Introduction of New Certifications,

Perth International Property Conference (IPC),

Refresh of API Brand,

Signing of a Memorandum of Understanding

between the API and the Institute of

Surveyors Malaysia,

Finalisation of the Presidential Appointment

Policy,

Introduction of the Limitation of Liability

Scheme,

Standardisation of Membership Application

Fees,

Standardisation of Membership Application

Fees,

Development of the Future Professionals

Program, And

Continued liaison and building of relationships

with ASIC & APRA.

Strategic Planning Initiatives

At a combined National Council and Divisional

Presidents strategic planning meeting held in

Canberra in February the following Nine-Point Plan

was established

i. The development of a National Education

Program.

ii. Nationalising the Property Directions Survey

conducted through the New South Wales

Division. It is anticipated that this highly

sought after and well anticipated Survey

within the property industry be expanded to

all states of Australia with anticipated benefits

being an increase in profile for both the

publication and Australian Property Institute

and further enhancing the niche positioning of

this survey.

iii. Standardisation of membership fees.

Membership fees across Australia vary

significantly and present our organisation

as fragmented rather than as a single

organisation. Services provided to members

across Australia are extensive and of a high

quality. The disparity in membership fees is

inexplicable when Australian Property Institute

must present itself to the market as a single

organisation.

iv. Should the Australian Property Institute

expand its membership to include

corporates?

v. Ensuring consistency of property excellence

awards across the country and that such

awards are conducted in every division with

the potential for award winners to move

through to a national awards system.

vi. Establish a National News Subscription for

daily news feeds to members.

National President’s Report

Nick McDonald Crowley FAPINational President


Leading the Property Professions National Presidents Report

vii. Develop a National Marketing Strategy which

is sensitive to regional considerations.

viii. Review the various accounting functions

undertaken within National Office and the

Divisions seeking to remove duplication and

create efficiencies in association with the new

Coresoft program.

ix. Opportunities be explored to centralise

administrative functions common to all

Divisions, whilst ensuring that Member

services are delivered at a Divisional level.

Work on a number of these initiatives is currently

under way.

Introduction of new Certifications

In the last half of 2010 the Institute established

a number of new certifications primarily for the

benefit of those members working in professional

roles outside of valuation. The Institute

now has a range of nine certifications which

members can utilise and market for their benefit.

The certifications now available to members are as

follows;

Certified Practising Valuer (CPV),

Certified Practising Valuer, Plant & Machinery

(CPV – P&M),

Certified Practising Valuer, Business (CPV –

Bus),

Certified Property Manager (CPM),

Certified Facilities Manager (CFacM),

Certified Property Practitioner (CPP),

Certified Funds Manager (CFM),

Certified Asset Manager (CAM),

Certified Development Practitioner (CDP)

Introduction of a Limitation of Liability Scheme

After nearly two years of hard work, the Institute

established a Limitation of Liability Scheme for

those members who undertake the valuation of real

property.

The establishment of the Scheme aims to provide

better management in relation to the level of Valuers

liability and in time offer a more manageable level of

premiums.

The Scheme commenced on the 1st September

2010 (with members being able to join from 1

December 2010) and on the 8th December 2010,

the Scheme was prescribed for the purpose of

regulation 8A of the Competition and Consumer

Regulations 2010 (formally the Trade Practices

Regulation 1975) as a prescribed Scheme.

The Scheme applies to all members of the

Australian Property Institute Valuers Limited (“APIV

Ltd”). A condition of membership of the APIV is

that a person must also be a member of API and

therefore the following members of API are eligible

for the Scheme;

Life Fellow Member (who hold the certification

of Certified Practising Valuer),

Fellow Member (who hold the certification of

Certified Practising Valuer),

Associate Member (who hold the certification

of Certified Practising Valuer),

Provisional Member (who hold the

designation of Residential Property Valuer),

In addition, only members of API who reside in

Australia and undertake the valuation of real property

will be members of the APIV. The Scheme will also

apply to the partners and employees of persons

who are members of the Scheme.



The APIV Limited Scheme applies to all States

and Territories with the exception of Tasmania its

legislation does not include mutual recognition

provisions. A separate application will be lodged for

Tasmania in 2011.

International Property Conference, Perth

The 2010 International Property Conference was

held in Perth at the Burswood Convention Centre

over 21 – 23 April was a success following months

of work by the Conference Committee. 384 people

attended the conference with glowing feedback by

participants from across Australia, New Zealand

and S.E. Asia. The next International Property

Conference will be hosted by the Property Institute

of New Zealand in 2013.

Contact Management System

During 2010 the Institute implemented the new

Contact Management System (CMS) which replaces

the disparate computer systems in place around the

country with a single uniform application. The new

centralised web-based application provides the

Institute with an integrated IT infrastructure which

incorporates an effective and efficient membership

database and a delivery platform to enable the

provision of a far greater range of information and

services to members. The CMS forms part of the

“One-API” initiative and will assist in streamlining and

simplifying the administration of the organisation as

well as providing a mechanism that will allow for a

far greater range of products and services to be

available to Members, including a nationwide CPD

program with on-line registration, the establishment

of Professional Communities (with member question

and answer portals, discussion groups), information

papers and business resources, publications, and

the latest property and economic news

Regulatory Authorities

2010 saw a continuation of relationship building

with the Australian Securities and Investments

Commission (ASIC) and with the Australian Prudential

Regulatory Authority (APRA). The Institute regularly

meets with these two important organisations

to discuss issues such as proportionate liability,

valuations for financial reporting, valuations for capital

raising, infrastructure valuations and the importance

of ensuring parties receive independent, expert

professional advice on property related matters.

The Institute promotes the professional qualities of

its members and the high standards (professional

and technical) the Institute has established for the

benefit of members and their clients. The Institute

continues to stress the importance of the public

benefit test in providing impartial advice to these

regulatory bodies

Refresh of API Brand

Following market research in late 2009, the Institute

undertook a refresh of the Australian Property

Institute brand. The market research confirmed that

Australian Property Institute is the best brand for the

organisation and as a result the existing brand was

refreshed rather than replaced.

The revised look is a modernisation of the existing

logo and it is supported with strict protocols for its

application. The new logo became available on 01

May 2010.

Nick McDonald Crowley FAPI

National President

National Presidents Report


Leading the Property Professions Communications

The Editorial Committee is responsible for producing

the most highly regarded professional property

journal in Australia and New Zealand, enhancing and

promoting the standing of the property profession,

informing Members and other interested parties

about the activities of the Institute using the Journal

as a promotional tool and educating the readership

on the latest technical developments and thinking

in the property profession by sourcing contributions

and articles for inclusion.

Editorial Committee Members

Aaron Hall (Editor), Brett McAuliffe, Michelle Leong

Glastris, Chris Eves, Sean Ventris, David Clark

(PINZ), Ian Mitchell (PINZ), John Darroch (PINZ) and

Professor Richard Reed (Consulting Editor).

National Office support was through the National

Communications Manager, Phil Turner.

The Australian and New Zealand Property Journal

has been published under this banner for four years.

The content of the Journal continues to be highly

regarded in professional property as a valuable

resource for technical information. The Australian

and New Zealand Property Journal Editorial

Committee consistently selected an interesting

array of leading property articles to feature in the

March, June, September and December issues of

the Journal.

The API National E–newsletter is a fundamental

national communication tool used primarily to

inform members of changes and up-to-date news

in the property industry. In 2010, the Institute’s

E-News was circulated to members in February,

March, April, May, June, August, November and

December.

Communications



API National Technology is a new initiative of the

Australian property Institute. The initiative was

developed to administer & deliver new technology

strategies of the API to its members.

Since its inception, the API has delivered a new

technology base to serve its members in a more

efficient & cost effective approach. Such deliveries

are

The National Data Management Plan

a. API secure Data Storage

b. Coresoft Membership Management

Repository

c. Email Management & Archive

The Online Media Strategy

a. The new API website Application

b. Social Media Strategy

c. Search Engine Optimisation & Marketing

Strategies

Infrastructure Platform

a. Cloud based technology foundation

b. Unified technology methodology

The new national Data Management Plan has

been orchestrated as part of the overall technology

delivery vehicle. The Data Plan aims to facilitate the

API with a more uncomplicated approach to deliver

products, services & solutions to its members; cost

effectively and timely.

The new API website resides on the platform

outlined by the Data Management Plan. The new

API website is a continually expanding & improving

product of the API, which aims to deliver up to date

information & services to Members.

The Online Media Strategy closely integrates the

new Website and Social Media & Search Engine

strategies as an all-encompassing entity. The API is

able to publish online content through the new API

Website, with a much wider reach to Members &

the general public.

Technology & Online MediaUtilising the Data Management Plan & Online Media

Strategy, the API’s Contact Management System

(provided by Coresoft) employs the data framework

developed under the Data Management Plan and

easily access online solutions established by the

Online Media Strategy.

The overall Technology Delivery established by

the API is utilising the tools at hand to assist with

delivering existing & newer solutions of the Australian

Property Institute.

The FPP (Future Professionals Program) is a solution

derived from the Education Board in an attempt

to assist those Graduate Members entering the

workforce. The Online Strategy & Data Management

plan provided the basis for this program to be

developed & delivered.

During 2011 the API will invest in Social Media,

through implementing its Social Media Strategy

in conjunction with the new API website. The

new investment is expected to increase the API’s

exposure online and increase the Institute’s image,

enhancing the API’s member base.

Technology & Online Media


Leading the Property Professions Education

The National Education Board (NEB) is responsible

for the development and provision of advice on

education and membership entry requirement

matters on behalf of members of the Institute, on a

national basis.

The National Education Board met on four occasions

in 2010, March, June, September and November.

National Education Board Members

Philip Western (Jan to May), Chris Plant (June

to December), Joseph Agnello (Chair), Clyde

Eastaugh, Greg Costello, Mark Kay, Professor

Richard Reed, Marcia Bowden, Dr Garrick Small,

Richard Feenaghty, Professor Mike Hefferan,

Professor Chris Eves (June to December) and Alan

Smee (PINZ).

The National Education Board is supported by the

National Education Director, Sally Allen.

Highlights of the 2010 year included the

endorsement of five Universities (Deakin / UTS

/ CQU Postgraduate / RMIT / UQ) and Sydney

Institute (TAFE), the introduction of a Rural Text,

scoping for a P&M Qualification and ongoing

support and review of the Institute’s Future Property

Professionals Program.

The Board undertook research into the property

profession 2020, by surveying a number of key

stakeholders nationally, with an eye on national and

international trends and global impacts. The results

will provide further ongoing research opportunities

for industry and academic partners.

Academic entry requirements were reviewed

throughout 2010 with a new Accreditation Policy

to be presented to National Council in March 2011.

The new policy includes the abolition of the pathway

for applicants to complete a Master’s Degree only to

achieve Associate Membership and CPV. Masters

EducationDegrees will be undertaken in combination with

approved prior academic qualifications from January

2011. The new Policy will also see the introduction

of Accreditation Benchmarks, which the Board

agrees will ensure the Institute maintains relevance

and leadership in the area of property education.

With the introduction of the Institute’s new

certifications, the Board reviewed the Knowledge

Fields and specialisation areas required to achieve

academic coverage. In 2011, endorsed partners

will be invited to apply for accreditation of the new

certifications to assist the Institute in rolling these

out in the marketplace.

In 2011, the Board will focus on the finalisation

of the Future Property Professionals Program,

the development of a rural qualification and a

qualification for P&M, the ongoing development

of parameters around the new certifications and

implementation of the new accreditation policy.

The API will continue to partner the property

education PRRES Conference (Pacific Rim Real

Estate Society), and look to strengthen partnership

with all endorsed providers and kindred property

educators, both locally and internationally.


Leading the Property ProfessionsFinance

The National Finance Board (NFB) has the

responsibility to ensure that all assets, liabilities,

income and expenditure of the Institute are properly

managed and accounted for, and that the financial

impacts of all strategic plans and changes are

properly assessed and budgeted. In addition, the

NFB is entrusted with the financial management of

the Institute’s Research Trust Fund and Institute’s

Awards Trust Fund.

National Finance Board

Philip Western (Chair), Robert Smythe, Peter

Barnes, Bryan Hurrell and Nick McDonald Crowley.

The API National Finance Manager is Andrew

Tregenza.

The Australian Property Institute financial accounts

for the year ended 31 December 2010 have been

finalized and have been audited by RSM Bird

Cameron.

The results for the year ending 31 December reflect

a draw down from the Institute’s reserves as a

reinvestment into the long-term restructuring of the

API to enable a wider influence across all sectors

of professional property. Significant investments

have been made to the new Contact Management

System and website. Consequently, the end of year

results reflect a deficit of $906,494.

Income for 2010 declined by $0.54m over 2009

figures, due primarily to a decrease in CPD revenue

(down $0.62m) and Presidential Appointment fees

(down $0.05m). Expenditure for 2010 increased by

$0.54m over 2009 figures due to increased staffing

costs (up $0.38m), IT Expenses (up $41,676) and

contractual and other expenses (up $247,388).

The main income streams for the Institute in 2010

were membership subscriptions $3.67m, CPD

Income $1,68m, Publication sales $0.25m, Rental

Determination Admin Fee $0.18m.

FinanceMajor expenditure items for the year related to

the Contact Management System, Professional

Development, staffing, Member Services &

Functions and Publication expenses.

At the end of 2010 the Institute held unencumbered

reserves totaling $11,853,989. A significant

proportion of these reserves will be reinvested

back into long-term sustainable structuring of API

to enable a wider influence across all sectors of

professional property.


Leading the Property Professions International

The International Committee (IC) is responsible for

the Institute’s international affairs in accordance

with the terms of reference contained in the by-

laws on behalf of members of the Institute on a

national basis. During 2010, the Committee met

three times, in February (Teleconference), August,

and November.

International Committee:

James Pledge (Chair), David Moore, Bob Connolly,

John Martin, Greg McNamara and Chris Stanley.

National Office support is through the National

Director, Grant Warner.

2010 Outcomes:

International Relationships: - in September

2010 the Institute signed a Memorandum

of Understanding (MOU) with the Institute of

Surveyors Malaysia. Discussions are being

held in relation to entering into a MOU with

the Indonesian Society of Appraisers.

During 2010 John Martin continued to

chair the ‘Valuation Advisory Forum’

which provides a link between valuation

organisations and the International Valuation

Standards Council.

Institute representatives attended the 25th

Pan Pacific Congress in Bali, which provided

an opportunity to discuss issues of mutual

interest with kindred organisations. The API

will host the 26th Pan Pacific Congress in

Melbourne in October 2012.

During 2010, the Institute continued with the

strengthening of the relationship between

the API and the Property Institute of New

Zealand. The Strategic Alliance between the

API and PINZ is providing a framework that

will see both countries being vowed as a

single market for property professionals.

International Following a recommendation from the

International Committee, the Institute will

progress the establishment of relationships

with kindred organisations across South

East Asia both directly and indirectly

through the ASEAN Valuers Association.

The establishment of formal relationships

with kindred organisations in other countries

facilitates the transportability of property

professionals between countries as well as

providing a mechanism for establishing a

consistent approach to professional and

technical standards.

In light of the increasing number of requests

for membership from overseas property

professionals, it is proposed that an overseas

membership class be established in 2011.


Leading the Property ProfessionsProfessional and Technical Standards

National Professional Board (NPB)

The National Professional Board is responsible for

the execution and implementation of professional

and technical policy matters on behalf of Members

of the Institute on a National basis.

The National Professional Board met four times in

2010, in February, May, August and November.

Professional and Technical Standards are

developed and administered on behalf of the

Institute by the National Professional Board (NPB)

and the Australian Valuation & Property Standards

Board (AV&PSB).

NPB Members

Cameron Harris (Chairman), Matthew Page, Roy

Farthing (Chair AV&PSB), Nicholas Munn, Kym

Dreyer, Tony Gorman, Denis Lovell (from May AGM),

Matthew Shadbolt (until May AGM), , Bob Dupont

and Chris Stanley (PINZ).

Australian Valuation and Property Standards Board (AV&PSB)

The Australian Valuation and Property Standards

Board is responsible for the review of Practice

Standards, Guidance Notes and Information Papers

under direction from the National Professional Board

on behalf of the Institute.

The Australian Valuation and Property Standards

Board met three times in 2010, in April, July and

October.

AV&PSB Members

Roy Farthing (Chairman), Peter Beverly (Mortgage

Industry Association), Dennis Bluth (Property

Law Group of Law Council of Australia), Neil Bray

(Valuers General), Graeme Addicott (Government

Valuers), Blue Hancock (PINZ), Natalie Batsakis

(AASB), Rod Hyman (API), William Reynolds

(API), John Gibson (Business Valuers Special

Interest Group) and Bob Connolly (until 30 April).

National Office support is through the National

Professional Standards Manager, Tony McNamara.

Practice Standards and Guidance Notes

The Boards continues to review Standards and

Guidance Notes with the view to updating as

appropriate.

The International Valuation Standards Council (IVSC)

is currently undertaking a complete review of its

publication, International Valuation Standards with a

view to reworking the existing Valuation Standards

to a more principles-based style. It is also proposed

that the Guidance Notes be reworked into Technical

Information Papers. The IVSC has announced that

the new Standards should be available in July 2011

for effect from 1 January 2012.

The following documents were released in 2010:

Guidance Note ANZVGN 11 – Valuation of Self Storage Facilities

Following extensive consultation with industry

and members, the document was released as a

Guidance Note effective from 1 January 2011.

The purpose of the Guidance Note was to set

out matters to be addressed in the valuation of

operating self storage facilities.

Professional and Technical Standards


Leading the Property Professions Professional and Technical Standards

Exposure Draft – Guidance Note – Market Value of property, plant and equipment as part of a going concern business

This document was released as an Exposure

Draft on 1 March 2010 in response to a need

for guidance to members, which was identified

following a Supreme Court of Victoria case dealing

with a stamp duty matter.

The Exposure Draft will be issued as a Guidance

Note in 2011.

Exposure Draft – Guidance Note – Valuations for Insurance Purposes

A recent review of the Standards and Guidance

Notes revealed a need to substantially re-work the

existing Guidance Notes on this subject. The two

existing documents are:

AVGN 2 Valuations for Insurance Purposes

NZVGN2 Insurance Valuation Reports

Recent catastrophic events such as the earthquake

in Christchurch, the Victorian bushfires and

Eastern Australia floods have highlighted the need

for consistent guidance in the area of insurance

valuations and API and PINZ members have an

important part to play in the provision of insurance

valuation services both pre and post loss.

It was proposed that the API and PINZ Guidance

Notes should be brought into alignment whilst at

the same time allowing for certain differences in

legislative requirements.

This document was released as an Exposure

Draft on 1 December 2010 and will be issued as a

Guidance Note in 2011.

Member Alert - GST Margin Scheme

In the June 1010 edition of the National E News the

Australian Property Institute issued a GST Margin

Scheme alert to members when dealing with

residential development valuations for mortgage

security purposes.

International Valuation Guidance Note - IVGN 4 - Valuation of Intangible Assets (Revised 2010)

Effective from 1 March 2010 the IVSC issued the

revised Guidance Note on the Valuation of Intangible

Assets.

International Valuation Guidance Note - IVGN 17 - The Valuation of Investment Property under Construction

Effective from February 2010 the IVSC issued the

Guidance Note on the Valuation of Investment

Property under Construction.

IVSC Discussion Paper – Definition of a Professional Valuer

Following the release of the Discussion Paper –

Definition of Professional Valuer in July 2010 the

Australian Property Institute provided a response to

the issues raised.

IVSC Discussion Paper – Valuation Uncertainty

Following the release of the Discussion Paper

– Definition of Professional Valuer in September

2010 the Australian Property Institute provided a

response to the issues raised.

IVSC Exposure Draft – Proposed Code of Ethics for Professional Valuers

Following the release of the Exposure Draft –

Proposed Code of Ethics for Professional Valuers in

July 2010 the Australian Property Institute provided

a response to the issues raised.


Leading the Property ProfessionsProfessional and Technical Standards

IVSC Exposure Draft – Proposed New International Valuation Standards

Following the release of the Exposure Draft –

Proposed New International Valuation Standards in

June 2010 the Australian Property Institute provided

a response to the issues raised.

National Licensing

At its meeting on 3 July 2008, the Coalition of

Australian Governments (COAG) agreed to establish

a national trade licensing system that will remove

inconsistencies across state borders and allow for

a much more mobile workforce as one of its 27

priority areas for regulatory reform and deregulation.

The proposed national licensing system will initially

cover a limited number of occupation areas. One of

these areas is property agents which encompasses

the valuation profession.

Government, through its Interim Advisory

Committee on Property Agents has commenced it

review of licenses dealing with such. It should be

noted that Advisory Committee to look at the review

of licensing of the valuation profession is yet to be

established and any outcome is not expected until

after mid 2013.


Leading the Property Professions Committees and Taskforces

During 2010 a number of issues were addressed

by Taskforces and Committees established by

National Council. These included; CMS Taskforce,

Future Valuations Taskforce, Future Property

Professionals Taskforce and the Environment

Standing Committee.

Contact Management System Taskforce

The CMS Taskforce was established in 2008 to:

Identify the requirements for a Contact

Management System,

Assess systems currently available in the

market,

Identify resource requirements (physical &

financial) for implementation and on-going

functionality of a CMS,

Identify impediments from previous CMS

development process,

Establish a Business Plan for the

implementation of a CMS,

Management of CMS development and

implementation, and

Development of a CMS Management Policy.

The Taskforce consists of Tony Gorman (Chair),

James Pledge, Andrew Bell, Cathy Sirel, Amy Guy,

Joel Leslie and Grant Warner.

The Institute’s former AMPL database and separate

MYOB accounting systems did not provide the

required functionality that would enable the API to

manage its membership into the future (including

the provision of a broader range of services). As a

consequence the Institute embarked on a project to

establish a single cohesive integrated membership

system that facilitated the provision web-based

services to members at the same time providing the

Institute with an effective management tool.

Committees and TaskforcesDuring 2010 the Taskforce worked on the

implementation of the new CMS, focussing on

establishing business rules for the system, identifying

and rectifying any bugs and improvements associated

with the implementation of the application. The main

issues that required addressing were associated

with the financial application, most of which have

now been addressed. Work will continue through

the System Administrator on further improvements

to the useability of the application.

The result has been the adoption of the Coresoft

application which is being implemented from

December 2009.

Future Valuations Taskforce

The Future Valuations Taskforce was established in

2008 to:

Continue development of the Matrix detailing

the Risk Classification of Real Property

Valuation by Valuation Product Type.

Develop an information Paper(s) on the

uses and limitations of emerging valuation/

assessment practices and whether they meet

the professional standards required by the

Institute.

Make recommendations to the National

Council and the National Professional Board

as to any necessary changes to the Rules

of Conduct and/or Practice Standards and

Guidance Notes.

Review and make necessary changes to

PropertyPRO .

The Taskforce consists of Robert Hecek, Andrew

Cubbbins, Richard Reed and Tony McNamara.

During 2010 the primary focus of the Taskforce has

been the review of PropertyPRO. Consultations,


Leading the Property ProfessionsCommittees and Taskforces

including workshops in July and November, were

undertaken with the major lending institutions, the

mortgage insurers, major residential valuation firms

and valuation management system providers in an

endeavour to enhance the product for the client and

valuer, with particular emphasis on consistency and

clarity associated with the risk ratings.

The revised PropertyPRO product is expected to be

released midyear 2011.

Sustainability and the Environment Standing Committee

The Sustainability and the Environment Standing

Committee was established in 2007 to identify and

address issues relating to sustainable property.

Its primary focus has been on issues associated

with Green Buildings and the commercial property

sector.

In May 2010 Bill Hames FAPI was accepted as

the Australian Property Institute nominee on the

National Australian Built Environment Rating System

(NABERS) Industry Advisory Committee which has

been established to formalise engagement with key

industry and other stakeholders on a national basis.

The September 2010 edition of the National E

News included advice to all members about the

Commercial Building Disclosure Program which is

a national program designed to improve the energy

efficiency of Australia’s large office buildings. New

disclosure obligations came into effect on 1 July

2010 by the enactment of the Building Energy

Efficiency Disclosure Act 2010.

During 2010 the Australian Property Institute

provided advice to government on its National Green

Leasing Policy. The National Green Leasing Policy

represents a fundamental step in the development

of a national policy by Australian, State and Territory

governments, as tenants of buildings, to drive a

reduction in the environmental impact of buildings

through improved operational performance.

In May 2010 the Australian Property Institute

responded to the Discussion Paper released by

the Senior Officials Group on Energy Efficiency via

the Department of Climate Change and Energy

Efficiency. The Discussion Paper being “National

Building Energy Standard – Setting, Assessment

and Rating Framework”.

On 2 August 2010 the Australian Property

Institute, jointly with the Spatial Industries

Business Association, submitted a response to

the Issues Paper Performance Benchmarking of

Australian Business Regulation: Planning, Zoning

and Development Assessments released by the

Productivity Commission in May 2010 for public

consultation and input.

A special thanks to Marcia Bowden, Richard Reed,

John Sheehan and Bill Hames for their contributions

during 2010.

The Institute acknowledges the work undertaken by

John Sheehan in relation to property rights issues,

including those associated with Native Title, carbon

property rights and water property rights.

John presented a paper to the 4th Conference of

the International Academic Association for Planning,

Law and Property Rights, Dortmund, 10 February

2010 titled New ‘Old’ Property: Compensation

for Indigenous Cultural Heritage. A copy of John’s

paper was included in the June 2010 edition of the

ANZPJ. John also attended the Expert Meeting of

the UNFAO on Land Tenure in Rome in November

2010 on behalf of the Institute. A copy of John’s

report on that meeting will be included in the June

2011 ANZPJ.

John’s attendance at these meetings keeps

the Institute at the forefront of these debates

and has positioned the API as leading the

debate and working on solutions for these

issues internationally. Without John’s input this

would be most difficult.


Leading the Property Professions Committees and Taskforces

Future Professionals Program

The Future Property Professionals (FPP) Taskforce

was established in 2008 to develop a value

add program for graduates that will bridge the

gap between academic rigour and professional

competency. In 2010, the Taskforce finalised the

program, to be rolled out on an optional basis

in 2011, for compulsory participation starting 1

January 2012.

13 FPP Modules have been written by experts

in the field (more Modules to be written over the

coming months) and these cover specialist areas

including written communication, professional

communication, ethics, data collections, GST,

networking, preparation for professional interview,

leases and corporate real estate. These will be

available on line, and participants will be required to

complete a work based activity, with competency

to be assessed by the appointed (employer)

supervisor.

All participants, employers, supervisors and

associated stakeholders will receive program

information throughout 2011.

The FPP Taskforce will be scaled back in 2011, to

implement a Management Committee to manage

the implementation and review of the program

moving forward.

The Institute recognises the work undertaken by the

FPP Taskforce and extends its gratitude and regard

to the Members:

Clyde Eastaugh (TAS & Chair), Marcia Bowden

(ACT), Kym Dreyer (SA), Judy McAdam (SA), Geoff

Page(SA), Joseph Agnello (WA), Gail Walker (WA),

Monica Csesko (VIC), Robert Dupont (NSW), Prof.

Terry Boyd (QLD) and Sally Allen (National Education

Director).

P.I. Subcommittee Taskforce

Limitation of Liability Scheme.

The P.I. Subcommittee consists of Robert Hecek

and Grant Warner.

In 2010, the Australian Property Institute was

granted approval by the Professional Standards

Council in respect of the establishment of the

Australian Property Institute Valuers Limited Liability

Scheme pursuant to the Professional Standards Act

1994 (NSW). Mutual recognition provisions in the

legislation mean that the Scheme will operate in all

jurisdictions with the exception of Tasmania.

The Scheme commenced on 1 September 2010,

with the establishment of administrative structures

allowing members to join from 1 December 2010.

The Limitation of Liability Scheme is administered

through Australian Property Institute Valuers Limited

(APIV Limited), a company limited by guarantee,

established by the Australian Property Institute as

an occupational association for members of the

valuation profession.

In essence, the Scheme will cap the occupational

liability of participating APIV Limited Members to

an amount between $2 million and $10 Million,

depending on the Upper End Value of the property

being valued, and to the extent that liability can

be limited under the respective State or Territory

legislation.

Since the Scheme was established, the Institute has

engaged Betty Warner-Lehman as the Institute’s

Professional Indemnity and Compliance Manager.

Betty will administer the Scheme and provide

assistance to members in the area of Professional

Indemnity Insurance going forward.

The Institute acknowledges the work undertaken

by Robert Hecek and Grant Warner in getting the

Scheme established.


Leading the Property ProfessionsThanks and ackknowledgements

I would like to thank all National Councillors, Philip Western (NSW & Senior Vice

President), Chris Plant (VIC & Junior Vice President), David Moore (WA & Immediate

Past President), John Forsythe (VIC), James Pledge (SA), Andrew Cubbins (TAS),

Cameron Harris (QLD), Jim Eager (NSW) and Clyde Eastaugh (TAS) for their

enormous contribution throughout the year. A very special thank you also goes to

Greg Preston (NSW) who has contributed to the API over many years and completed

his term as Councillor at the May AGM. In June 2010, Greg was awarded a Life

Fellowship of the API.

The 2010 year (and into 2011) has been a time of significant growth and

development for the Institute as we continue to implement new strategies and

initiatives as a priority to maintain industry relevance and continue to lead the

property professions. National Office staff under the leadership of Grant Warner

have continued to work effectively meeting challenges and I would like to take this

opportunity to acknowledge their contribution.

Best wishes to all members and thank you for the opportunity to serve the Institute.

Nick McDonald Crowley, FAPI

National President

THANKS AND ACKNOWLEDGEMENTS



Australian Capital Territory Division

In 2010, Mr Robert Smyth was re-elected President

of the ACT Division of the Australian Property

Institute. The ACT Division has representation

with a number of Kindred bodies and associations

such as the Residential and Commercial Advisory

Groups, and other professional associations in

matters of mutual interest.

In 2010 the Continuing Professional Development

Committee provided a variety of interesting and

relevant educational and training forums for our

members and new professionals into our industry.

Some highlights were:

4 o’clock Forum on the Land Development

in the ACT – A legal Perspective. This was

presented by Mr Alfonso del Rio, Partner

Clayton UTZ and it was well received by a

large number of members and non members.

Another interesting and relevant forum

was a presentation by Mr Tony Adams

of CB Richard Ellis addressing issues on

Concessional Leases.

Mr Andrew Balzanelli, Managing Director

of Jones Lang LaSalle commented on the

major events in the ACT commercial property

market in 2010 and provided an insight to the

market expectations for 2011.

The ACT Divisional Annual General Meeting

and lunch was a success as usual and well

attended by members and guests. Mr Greg

Marr of the GPT Group as guest speaker

provided an insight from the perspective

of an institution as to the benefits and

disadvantages of investing in the Canberra

property market.

The ACT Division gives thanks and appreciates the

participants who contributed to the success of our

Continuing Professional Development program.

The Excellence in Property Awards at the Lobby

Restaurant was held in November and this event

continues to highlight the Institute as the leading

property organisation in Canberra.

New South Wales Division

The support for the API from members and

the industry generally has assisted in making

the Division’s 2010 operation a success with

membership numbers and attendance at events

remaining strong as well as organisations continuing

their sponsorship support.

Robert Hecek, Chair of the National API PI Insurance

Committee and API NSW President, contributed a

great deal of time and expertise in working with the

API National Director, Grant Warner, to establish a

capped liability scheme for valuers and, over time, it

is expected that there will be significant benefits for

API members from the Scheme.

CPD and Networking

A comprehensive CPD program was presented

in 2010 and the Division’s major annual events

– Kiparra Day, the Country Conference, the

Public Sector Property Conference and the P&M

Valuation Conference – were all well attended

with topical subjects delivered by expert and high

profile speakers. The joint NSW and ACT Country

Conference was held in Canberra and proved to

be a successful format for offering another joint

conference sometime in the future. The other

successful joint events - API/FINSIA seminars and

the API / ADPIA Profitable Sustainability in Property

Conference – continue to cement our good working

relationships with those organisations.

Numerous other CPD events were held including

the Rating Practice Module and the Expert Witness

Associate Professional Certificate along with short

topical seminars.

Divisional Highlight Reports

Divisional Highlight Reports


Leading the Property ProfessionsDivisional Highlight Reports

Four sold out Young Property Professionals’ (YPP)

events were held in 2010. Under the Chairmanship

of Layne O’Neill, the YPP Committee compiled an

impressive line up of speakers and topics for the

year and held another great end of year event held

at La Cita Latin Bar.

A successful Annual Golf Day was held at Concord

Golf Club on 22 July with the Gunning Commercial

players winning the tournament.

Raising the Profile and Industry Liaison

There were numerous issues raised by the Division in

various metropolitan and regional media throughout

2010 and these included coastal sea level rises,

climate change policy, water rights, planning issues,

valuers’ liability and carbon trading. Liaison on

these matters as well as on retail leases and valuers’

regulation was also undertaken with Government

during the year.

API members ably represented the Division on

various external committees such as the OFT

Property Services Advisory Council, the Law Society

of NSW Environmental Planning and Development

Committee, the Land and Environment Court Users’

Group, the Land Valuation Specialist Advisory

Group and Disability Access Forums.

Three meetings of the Division’s Banking & Finance

Liaison Group were held in 2010 and the information

exchanged at these meetings has led to a better

understanding of the challenges facing both the

property and finance industries. A number of

meetings of the Carbon Property Rights Committee

were held last year resulting in submissions and

relevant papers being produced.

Research

The two issues of the API Property Directions

Survey in 2010 attracted widespread media

attention across all forms of media – print, radio,

television and electronic. The Survey continues to

be recognised by the media as being a quality and

accurate survey of sentiment within the property

industry.

The API and ADPIA (Australian Direct Property

Investment Association) “Doing Well by Doing

Good Down Under” project is a research project

on the value of investment in sustainable Australian

commercial office buildings. The project aim

is to see if there has been any additional return

on investment from greening commercial office

buildings. The study is comparing the rental

returns and valuation impact of energy efficient

and demonstrated sustainable buildings with

similar buildings which do not demonstrate these

attributes. API NSW Is providing the administrative

support for this ground breaking research and it is

planned to release the results in mid 2011.

Recognising Excellence

This year, the Division provided 22 awards to

students for academic excellence in the API

endorsed property courses as well as recognising

outstanding performance in the property industry

via the NSW Excellence in Property Awards. On 21

October, the Excellence in Property Awards were

presented at a very well attended cocktail function

at Sydney’s iconic Powerhouse Museum.

Membership

2010 saw over 400 members gain the new member

certifications covering all areas of property practice.

In addition to those certifications, the Division

processed 429 membership applications, transfers

and resignations, conducted 107 profession\al

interviews and 6 membership inductions.

Broadening the API’s representation of the various

sectors in the property industry saw five new Fellow

members from the funds management and property

finance areas inducted into the Institute under the

Property Leaders’ program at an event at the Mint

in November last year.


Leading the Property Professions Divisional Highlight Reports

Appreciation

Appreciation is extended to the over 400 members

and non-members who generously gave of their

time and expertise to assist the Division in providing

member services during the year.

Queensland Division

2010 was a successful year for the Queensland

Division with the easing of the difficult global

economic conditions and improving implications

for the Institute and our members although private

sector practitioners report increasing difficulties with

insurance renewal issues.

Our membership base remains strong at the

end of 2010. Encouragingly, the membership

numbers continue to grow. At the end of 2010 the

Queensland Division had 1,678 members and this

number has increased by over 260 members in the

last five years. The current membership numbers

include 283 student members and there continues

to be a good progression from student membership

to more senior membership status.

The Division’s CPD Program has again been strong

during 2010. Some of the highlights of the 2010

Program included:

3,289 registrations received for 26 CPD

events during the year;

Over 740 attendees at the Queensland

Property conference on the Gold Coast in

November; and

The Rural Conference in Toowoomba

and North Queensland Property Conference in

Townsville both attracting increased numbers over

previous years with very positive feedback from

delegates.

Residential Valuation Market Condition

Practitioners in this market sector report increasingly

difficult market conditions with significant pressures

on fee levels, falling volumes of instructions,

increasing incidence of professional indemnity

claims and difficulties with staff retention.

Land Valuation Act 2010

2010 was a busy year for the Queensland Division

of the Institute which worked closely with the

Queensland Government in the drafting of the

Land Valuation Act 2010. All of the Institute’s

recommendations were incorporated into the

legislation and the Division continues to assist in the

implementation of the provisions contained within

the new Act.

Looking Forward

The Queensland Division is looking to focus its

efforts over the next 12 months on:

Reviewing and upgrading services that are of

value to Members;

Better equipping Members for inevitable

changes in demand for their services into the

future particularly in the area of residential

valuations;

Implementing a mentoring program

throughout the Young Property Professionals

group with the property students from the five

accredited courses in Queensland, given that

they represent the future of the profession;

Preparing for likely federal government moves

towards professional deregulation over the

next few years; and

Seminars and Nominations of independent

chairpersons for future objection conferences

under the provisions of the Land Valuation

Act.

Ongoing assistance with amendments to the

Retail Shop Leases Act in conjunction with

the Queensland Government.



South Australia Division

2010 has been a diverse and interesting year in

the property market, from the residential to the

commercial and rural markets.

It has been a challenging year for the Australian

Property Institute as a whole, with elevations of

members, creation of new membership certifications

for non valuer property professionals, introduction

of a contact management system, and a continued

structural review of the Institute.

The SA Division has maintained its strong working

relationship with Uni SA, providing practical

workplace exposure to students via the mentor

scheme, as well as meeting regularly with Prof David

Parker and staff to discuss the course and foster

strong bonds between the API and the University

and our future property professionals.

During the year we met with the Valuer General

and his representatives to discuss issues and voice

opinions. A new Review Valuer Panel was formed

and approved by Cabinet and ably supported by

over 30 of our members.

The Young Property Professionals Committee,

chaired by Nadine Wessel continues to provide

our student and graduate members with events

which have been well supported. This forum

provides invaluable communication and educational

opportunities for the younger members of the

profession.

The CPD Committee conducted a well attended

and varied program. This was complemented by

the work of the Property Conference Committee

who once again organised an outstanding and

interesting event with an attendance in excess of

half the practicing members in the Division.

The Membership Applications Committee has

been particularly busy with many applications

from existing Provisional and Graduate members

advancing to meet the transitional arrangements for

the new classes of membership.

2010 has been a year of progress the changes

made to key structural and operational aspects of

our Institute will offer rewards and benefits to our

membership in the future.

There still remains much work to do but the many

initiatives of 2010 will lead to successful outcomes

and benefits in 2011 and beyond.

Tasmania Division

After our previous relationship with Association

Offices running the divisions affairs; 2010 saw the

Tasmanian Division closing off our first financial year

out our new premises, within the Valuer Generals

Office in Hobart. Coupled with the first financial year

out of the new Coresoft Customer Management

System it was a challenging year. We are very

pleased to report very positive outcomes on all

aspects of the Tasmanian Divisions operations.

The Tasmanian year started with the Annual Market

Update CPD Seminar, held at Somercotes just

south of the historic township of Ross in central

Tasmania. Other sessions included seminars on

Green Buildings and Sustainability; residential,

rural and financial market updates, site inspections

and an update from the Tasmanian Irrigation

Development Board.

The Annual Property Summit was held at the famous

Henry Jones Art Hotel on Hobart’s waterfront in

October. This is a joint venture with REIT and PCA

in October and was reasonably well attended by

API members.

During 2010 the membership base increased to

around 110 active members excluding students

and retired category memberships. API (Tas)

comprises a current total membership of 125

across all membership classes. Up 8% on 2009.

It has been pleasing to note an increase in student

and graduate/provisional members and a number

of private firms and the government again taking on



trainee valuers’ to assist with the aging profile of the

profession in Tasmania

As at the 31st December, 2010, we had 70 Associate

members, 20 Fellows, 6 Graduates, 4 Life Fellows,

5 Non Practicing, 6 Provisional, 3 Retired, and 11

Students.

We are looking forward to another successful year

in 2011.

Victoria Division

This year comprised a number of new initiatives for

the Division, the continued reinvestment of revenue

into member services, and significant headway into

raising the API profile and relevance in the property

industry. That so much has been achieved is a

testament to the enthusiasm of all involved.

We achieved a sound financial position in 2010 and

note that our member numbers continue to rise,

membership services have increased and there

has been a continued and concentrated effort in

raising the API profile in the public sphere and with

stakeholders such as our major employers, financial

institutions and various government bodies.

Growth of our Professional Certificate Programmes

Specialist programmes have been developed

in response to the public need for independent

experts in particular asset classes. The success

of Specialist Water and Specialist Retail Valuer

Professional Certificate Programmes was evident

by high attendance and the number of participants

in the subsequent accreditation process. The

Victorian Division released the latest in this suite of

programmes in November this year with the launch

of the Professional Certificate in Giving Expert

Evidence. This course was very well received and

was similarly designed to fulfil a market demand and

to add value to API membership.

Young Property Professionals

Supporting and developing our young property

professionals is crucial to the growth and relevance

of the API. Property students are encouraged to

join the API and to see the enormous benefit of API

membership throughout their property career. In

2011 we will meet with secondary school students

to promote careers in property and enhance

our support of the three accredited universities

via student awards and scholarships. The API

is invested in working collaboratively with the

Universities to ensure that the best possible balance

exists between tertiary study and professional

practice.

The YPP Committee commenced 2010 with a

rebranding to the YPP from the YPG. All YPP

events were well subscribed, generally surpassing

expectations and the quality of the events is a

tribute to those involved.

Regional Discussion Groups

The Chairs of all API Discussion Groups had

their annual meeting to share their strengths and

initiatives and to ensure that the API is providing

the best and most appropriate support to the

groups. Since allocating every Victorian member

to a group in 2008 we have seen an increase in

the number of members engaged in these groups,

whether by participating in their leadership group

or by attending the more widely available CPD and

networking events. The annual meeting enables

direct access to and from the API and engendered

feedback that relates directly to the profession and

API services.

Continuing Professional Development

The third Annual State Conference attracted

record numbers, particularly in regards to the rural

programme offered on the Saturday. The Conference

Committee again delivered a programme that

met the professional development interests of API



members across a variety of property specialisations

and geographical locations. The “Watch This

Space” seminars have been well received, enabling

the API to provide presentations on the most up-to-

date and contemporary topics.

Excellence in Property Awards

Yet another successful Excellence in Property

Awards took place at the Spice Market in August.

There was a considerable line up of award

nominations and sponsors and a wonderful evening

of networking and entertainment. In addition, the

API continued its alliance with the Property Industry

Foundation in support of its fund raising efforts to

help homeless youth.

Western Australia Division

2010 was a successful year for the Division

notwithstanding challenges.

The Division has now delivered 10 consecutive

years of profit, with Members equity now totalling

over $2.2 Million (which includes the Institutes office

at 27 Charles Street, South Perth) at the end of

2010.

During the first year in which the Institute was

utilising a new whole-of-business operating system

and endeavouring to adjust to meet implementation

challenges presented by the Coresoft system,

Divisional resources were stretched. The

effectiveness of the effort made to ensure that the

Division and its Members were sheltered from the

necessary refocus of resources is evidenced by the

bottom line black ink in 2010.

Primary income streams were reviewed when

framing the 2010 budget. Divisional Council did

not increase the component of annual membership

subscriptions retained by the Division. Members

did, however, pay a 4% increase in the per capita

contribution to National Council.

Divisional Council had a strong focus on expenditure,

with the outcome being that 2010 expenditure

was less than that of 2008, a deduction which

importantly did not impact on the services to our

Members.

The Division budgeted for a gross operating inflow

of about $662,000 for a net operating deficit of

about $3,000. The budget reflected the inability of

the Division to conduct an annual State Conference

and other events in the period leading up to the

International Property Conference convened by

API/PINZ and held in Perth in April 2010

Audited revenues approximated $673,000 for

a small surplus of some $4,700 after absorbing

unbudgeted costs of $50,000 associated with

National Council programmes. The annual per

capita payment to API National was $183,700 in

2010.

Above all Divisional Council resolved to ensure the

Members of the Division were not impacted by the

challenges being addressed internally.

A calendar of CPD events which would provide

opportunities for all levels of API membership to

achieve professional development were prepared

and conveners appointed to each event.

Registration fees for CPD were maintained at pre-

2004 levels for members.

We continued to promote CPD widely and sought

REBA accreditation whenever possible in an

endeavour to meet the needs of members and

other property professionals.

The Division continued to enhance exposure

and focus on the status of the API as the peak

representative body of property professionals,

assisted by a coordinated programme of media

liaison. This focus recognises the importance of the

API as a responsive and impartial commentator on

property

Membership numbers remained stable over 2010

and registrations for CPD events were strong.



Calendar 2010 could be described as a year in

which the Division strove for stability in the face

of innovation and accordingly a conservative

operational prudence was maintained.

Intensity of Divisional activity and overall outcomes

are broadly reflected in financial results however, the

magnitude of profit was not a prime focus given the

issues faced during 2010 and the general state of

the local and national economy’s.

The Regional Conference in Kalgoorlie confirmed

the importance of this event in the Division’s CPD

Calendar. Arrangements are already well underway

for the delivery of a first class Regional Conference

in Broome in October 2010.

The introduction of a series of young professional

boardroom luncheons was well received by an

important sector of our Membership which finds

breakfast or 4PM forums incompatible with their

work commitments.

The Risk Management Module was delivered in

2009. Unfortunately the RMM Manual has yet

to be delivered and no alternative to the face-to-

face workshop has been developed. The bylaws

in relation to undertaking the module will not be

applied while there is no module available to those

members who were unable to attend a face-to-face

workshop in 2009. The API has acknowledged

that this has caused problems for Members and

National Council is endeavouring to solve the issue

as a matter of priority.


Leading the Property ProfessionsAPI Overview

API OverviewBackground and Role

The Australian Property Institute (API) was originally

formed in 1926 as the Commonwealth Institute

of Valuers. The Institute has undergone several

name changes over the last century as the array of

services offered for its members expanded.

Today, the API represents the interests of more than

8,00 property professionals throughout Australia.

API members include residential, commercial and

plant and machinery valuers, property analysts

and investment advisors, property fund and asset

managers, property and facility managers, property

lawyers, property researchers and academics.

The Institute’s primary role is to set and maintain

the highest standards of professional practice,

education, ethics and professional conduct for its

members and the broader property profession.

API Governance

API Corporate Governance Statement

The Australian Property Institute is committed to

implementing and maintaining an effective and

comprehensive Corporate Governance Policy,

and in turn, practices and procedures. The policy,

practices and procedures have been developed

in accordance with the Australian Standard ‘Good

Governance Principles’ (AS 8000-2003). This

statement has been published in the Annual Report

to ensure transparency in this Policy.

API Structure

Established on 5th November 1926 in Adelaide

under the name of the Commonwealth Institute

of Valuers, the Australian Property Institute is

incorporated under Associations Incorporation Act

1985 (SA).

The Australian Property Institute is a not-for-profit

organisation with individuals as members. Councils,

Boards, Committees and Staff are responsible to

the membership for the financial management of

the Institute.

The API operates in a federated environment under

a national structure, comprising a single legal entity

API Incorporated (API Inc) with seven Divisions

located across six States and one Territory. API

Inc. is also the controlling entity for API Ltd, API

Education Awards Trust and the API Research Trust.

The Institute’s Board of Directors is comprised of

members of API’s National Council. National Council

is the supreme policy making body of the Institute

responsible for overseeing the management and

operation of the Institute as a whole.

API Limited (API Ltd) is a Company Limited by

Guarantee, established in 1995 by API Inc. The

Directors of API Ltd are the National Councillors of

API Inc.

API Inc has established two Trusts as enabled in its

Constitution. These Trusts are as follows:

API Education Awards Trust established

in 1994 for the education, training and

development in the fields of valuation and

land economy.

API Research Trust established in 1994 to

facilitate the undertaking of scientific research

in the fields of valuation and land economy.

National Council is the supreme policy making body

of the Institute, and oversees the management

and operation of the Institute as a whole. Its board

members are directors of the API, and therefore,

National Council is effectively the Institute’s board

of directors.


Leading the Property Professions API Overview

National Council has (through the Constitution) the

authority to delegate functional roles to other Boards

or Committees, and does so for the API’s National

Boards and Committees, in the key areas identified

in the Institute’s Strategic Plan; communication,

education, finance, governance, international,

membership and professionalism. National Council

is represented on all of the Institute’s National

Boards and Committees.

Institute Divisions are established to manage the

business of the Institute at the State and Territory

level. Divisions exercise the powers, duties and

discretions set out in the By-Laws, subject to the

control and policies of the National Council.

Board and Committee Members’ Duties and Responsibilities

Board and Committee member’s duties:

To fulfil their role in good faith with the best

interests of the Institute as a whole.

To act with care and diligence.

To exercise independence of judgment on all

matters.

Where a member becomes aware of a

conflict of interest, they are to declare that

conflict to the Board, and to refrain from

participating in any matters where that

conflict arises.

To serve the interests of the particular Board

of which they are a member.

To preserve the interests of the Institute

nationally when considering issues.

To be aware and supportive of the Institute’s

values and strategies.

To ensure compliance with applicable laws.

One such law with particular and ongoing

relevance, due to the Institute being a

member serving organisation, is the Privacy

Act 1988 (Cth), which sets requirements for

dealing with personal information.

To ensure compliance with the Institute’s

Constitution, By Laws, Code of Ethics and

Rules of Conduct.

Within the applicable area of responsibility

to the member, make reasonable inquiries

to ensure the Institute is operating efficiently,

effectively and legally towards achieving its

goals.

The specific roles, responsibilities, and composition

of each of the Institute’s Board’s are detailed in the

Institute’s Constitution and By Laws, which are

available through the Institute’s website. Additionally,

the individual members of National Council and

the National Executive are detailed in this Annual

Report.

Operating Guidelines for each of the National

Board’s have been developed which outline the role

of the Board, and the responsibilities of its members.

These Operating Guidelines are accompanied by

a Declaration, which each Board member signs,

agreeing to abide by the Operating Guidelines.

Disclosure, Transparency and Accountability

The Institute maintains disclosure and transparency

in its financial situation by including accurate Financial

Reports in each Annual Report. The Financial

Reports are accompanied by an Independent Audit

Report, and Directors Report.


Leading the Property ProfessionsAPI Overview

The Annual Report also discloses the Institute’s key

objectives for the year ahead, and any issues that

may be of concern or material to the membership.

Performance Review

The API has a formal and systematic process

in place to review the performance of senior

management and all staff. Performance reviews are

conducted annually. The National Executive reviews

the National Director’s performance based on both

national goals, and personal objectives that have

been set.

Each Board has a duty to periodically report

on its goals, achievements, and activities. The

performance of each Board is assessed on the

achievement of objectives from its Strategic Plan.

For any further information on the Institute’s

Governance, please contact the National Director.

Customers and Stakeholders

The API’s primary stakeholders are the Institute’s

members. Other stakeholders include property

professionals, kindred organisations, industry,

investors and the general community.

Funding Arrangements

The API is a not-for-profit organisation. Revenue

is generated from a number of sources including

membership fees and product sales.


Leading the Property Professions API Organisational Structure

National Council

TThe API’s focus and strategic direction is determined by the National Council.

The National Council is comprised of the National President and National Councillors. All

appointments are on a voluntary basis with Councillors appointed from each State and Territory

across Australia.

API’s National Councillors in 2010 were (with portfolio responsibilities as at 31 December 2010):

API Organisational Structure

Councillor Division Membership Class Role

Nick McDonald Crowley ACT FAPI

National President

Governance

Finance

Philip Western NSW FAPISenior Vice-President

Finance

Chris Plant VIC FAPIJunior Vice-President

Education

David Moore WA FAPIImmediate Past President

International

James Pledge SA FAPI

National Councillor

International

Contact Management System

Cameron Harris QLD FAPINational Councillor

Professional

Andrew Cubbins TAS FAPINational Councillor

Future Valuations Taskforce

John Forsythe VIC FAPINational Councillor

Communications

Jim Eager NSW FAPINational Councillor

Legal and Governance

Clyde Eastaugh TAS LFAPIAdditional Councillor

Future Professionals Program


Leading the Property ProfessionsAPI National Office

The API’s National Office provides the API National President, National Councillors and National Boards and

Committees with high levels of administrative and strategic support. It also produces a range of educational

and professional seminars and programs, products and publications for national distribution to API members

through the Institute’s local, national and international network. National Office will also manage and coordinate

the Institute’s new Content Management System, including the membership database and website.

The contact details for API National Office are:

6 Campion St

Deakin ACT 2600

Tel: 02 62822411

Fax: 02 62852194

API National Office

Staff Member Position Responsibilities

Grant Warner National Director Governance & International Affairs

Tony McNamara Professional Standards Manager Professional & Technical Standards

Sally Allen Education Director Education & Membership

Andrew Tregenza Finance Manager Finance

Phil Turner Communications Manager Communications & Marketing

Joel Leslie IT Manager Information & Communication Technology

Alec Ellis Graphic Designer Graphic Design

Tamara Lloyd Executive Assistant National Director, National Council

Barbara Jones Reception/Administrative Assistant National Office

Davide Lucchetti Finance Officer Accounts Payable

Shadreck Zinyemba Finance Officer Financial Accounting


Leading the Property Professions API Divisional Offices

API Divisional OfficesAPI-ACT Division

PO Box 145

CURTIN ACT 2605

6 Campion Street

DEAKIN ACT 2600

Ph: (02) 6282 5541

Fax: (02) 6282 5536


API-NSW Division

Level 3,

60 York Street,

Sydney NSW 2000

Telephone: 02 9299 1811

Facsimile: 02 9299 1490


API-QLD Division

PO Box 106

SPRING HILL QLD 4004

Suite 202, Level 2, 131 Leichhardt Street

SPRING HILL QLD 4000

Ph: (07) 3832 3139

Fax: (07) 3839 0438


API-SA Division

PO Box 246

KENT TOWN SA 5071

5a, 15 Fullarton Road

KENT TOWN SA 5067

Ph: (08) 8132 0092

Fax: (08) 8132 0480


API-TAS Division

PO Box 745

HOBART TAS 7001

Level 5

144 Macquarie St

HOBART TAS 7000

Ph: (03) 6223 3011

Fax: (03) 6223 3022


API-VIC Division

10 Beach Street,

Port Melbourne VIC 3207

Telephone: 03 9644 7500

Facsimile: 03 9646 4635


API-WA Division

PO Box 502

SOUTH PERTH WA 6951

27 Charles Street

SOUTH PERTH WA 6151

Ph: (08) 9474 2784

Fax: (08) 9474 1157




Divisional Presidents & Executive Officers (at 31 December 2010)

Divisional President Executive Officer

API – ACT Division Robert Smythe Cathy Sirel

API – NSW Division Robert Hecek Gail Sanders

API – QLD Division Michael Hefferan Andrew Bell

API – SA Division Mark Kay Moira Mundy

API – TAS Division Tim Grant Melanie McMeekin

API – VIC Division Steve Simpson Amy Guy

API –WA Division Ross Hughes Gail Walker

Divisional Presidents & Executive Officers


Leading the Property Professions API Membership

API MembershipThe table below shows API membership numbers at 31 December 2010.

Division: ACT NSW QLD SA TAS VIC WA National Total

Members

Life Fellows 2 15 6 5 4 8 6 46

Fellows 27 449 125 53 20 190 69 933

Associates 100 1,764 1,138 307 70 1,086 588 5,053

Provisional Members 10 38 31 54 6 102 7 248

Graduates 3 153 20 103 6 28 53 366

Provisional Associates 0 90 2 1 0 4 2 99

Retired 1 52 24 19 3 51 10 160

Non-Practicing 5 64 44 17 5 44 21 200

Student 13 462 283 57 11 265 36 1,127

Honorary 0 4 5 1 0 4 0 14

Total 161 3091 1678 617 125 1782 792 8246


Leading the Property ProfessionsIn Memoriam

In Memoriam

It is with sadness that we report on the passing of

Dr Tom Whipple in January 2010, Life Fellow of the

Australian Property Institute.

Dr Tom Whipple was both a leading property

academic and author in the Western world and had

been for some 25 years.

In 1949, he started his professional life by joining

the Commonwealth Bank of Australia, where he

gained experience in Mortgage Financing and Real

Property Conveyancing.

For the next 15 years, he continued to explore real

estate and real estate consulting, holding varying

roles and positions that would allow him to travel

to destinations in South-East Asia, South and East

Africa, even Hawaii.

Dr Whipple was admitted as an Associate of the

Commonwealth Institute of Valuers in July 1960. He

was elevated to Fellow in February 1984.

His academic accreditation includes a Ph.D.,

Diploma and Master of Town and Country Planning,

all of which were gained at the University of Sydney.

His academic standing has been recognised

internationally through being Visitor by Invitation

to the University of Cambridge and Aberdeen,

England and Visiting Fellow, Princeton University,

New Jersey and the University of Wisconsin, USA.

In 1982 he launched the Postgraduate Course in

Land Economy and in 1989 was appointed as the

inaugural Professor in Valuation and Land Economy

at Curtin University of Technology, Perth. On his

retirement from the chair academic recognition was

granted by elevation to Emeritus Professor in 1998.

Published books include Property Valuation and

Analysis 1995 and Urban Renewal and the Private

Investor 1971. He also edited Real Estate Valuation

Reports and Appraisals, Accounting for Property

Development and Commercial Rent Reviews – Law

and Valuation Practice for the Law Book company.

Other publications and significant papers are too

numerous to list, many of which are used in America,

England and New Zealand as well as Australia.

Tom had been an active member of the Institute for

many years. In particular he had been a member of a

team that set up the Property Education Foundation

and had served it as both Secretary and Member of

the Board of Trustees.

Tom developed the Property Course in Western

Australia to its current standard. He had done this

by working closely with both the Institute and the

property industry thus ensuring its current relevance.

He had given unstintingly of both his time and

knowledge and had always been available to give

papers to Continuing Professional Development

seminars and other occasions.

By his leadership and example Emeritus Professor

Dr Reginald Thomas Milner Whipple had shown

himself to be a worthy recipient of an Australian

Property Institute Life Fellowship.

Obituary: Emeritus Professor Doctor Reginald Thomas Milner Whipple LFAPI


Leading the Property Professions API Organisational Chart

National Council

National Office

National Director & Staff

National Boardsand Committees

National Education Board

National Finance Board

National Professional Board

Australian Valuation andProperty Standards Board

International Committee

Communications Committee

Standing Committee onSustainability & the Environment

National Task Forces

API Divisions

ACT NSW QLD SA TAS VIC WA

DivisionalCouncil

DivisionalCouncil

DivisionalCouncil

DivisionalCouncil

DivisionalCouncil

DivisionalCouncil

DivisionalCouncil

ExecutiveOfficer& Staff







API Organisational Chart

Australian Property InstituteAustralian Property Institute

6 Campion StreetDeakin ACT 2600

Telephone: 02 6282 2411Facsimile: 02 6285 2194


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ReportAnnual 2010

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