GEOGRAPHICAL Information Systems (GIS) analysis is unlocking new ways to use big data for the property industry, including valuation on the fly and helping investment decisions such as Dexus’ recent record-breaking $1.476 billion acquisition of 80 Collins St.
Speaking at the recent Australian Property Institute (API) and International Association of Assessing Officers (IAOO) International Research Symposium in Melbourne, IAOO president Tim Boncoskey said the speed of information is really catching up and GIS analytics has made valuation more transparent, fair and equitable.
“GIS is enabling the market to capture escaped values for property and government taxes. There is integration going on right now with technology where you have rows and columns of spreadsheets, which is the traditional way of doing it.
“But now this emergence into GIS, you can use GIS to do all your analytics. The advantage here is, you know the location, like Google Earth, you have different ways to put it into imagery. We can see what sites are been permitted, what is been built…
“GIS is also visualising the sales in 3D, we can see the value of sales in a condominium,”. For example, he added, apartments facing north and south on the same floor sold for different values, however the government data valued all units the same.
“This could be due to maybe the views are better in one. The whole idea for statutory valuers is that this is fair, equitable and transparent. So, you as a property owner under how the Valuer General got the value for your property – that’s the key.
“GIS is quicker, it speeds up the information,” Boncoskey said. “We are also capturing escaped value.”
Meanwhile JLL is using GIS for different purposes, in creating a 3D map of Melbourne.
JLL senior director Annabel McFarlane said JLL has combined GIS and its inhouse research to help clients on acquisitions.
McFarlane said the map helped Dexus, which recently paid $1.476 billion to buy 80 Collins St, realise the value and scarcity of large sites in Melbourne.
“The map we showed them, help them understand what’s happening in the CBD. You talk to your investors, show this your investment committee, and they will be able to see… no amount of reports and spreadsheets can do that.
“GIS is also able to show where the next growth will be based on transport links,”
McFarlane said JLL has also been able to reverse engineer the GIS data to show how much rent developers would need to achieve for new developments to get projects off the ground, based on how much they paid for the sites and size of the project.
Australian Property Journal