The faster process is tipped to cut turnaround times from 15 days to as little as five hours in some cases, giving financiers an edge in the fight to win and keep borrowers.
“Obtaining clarity sooner for all parties enables them time to consider how the structure will look, which might include if more capital input is required or where interest cover ratios will sit, which has a direct impact on the cost of debt,” Dale Winfield, Head of Value & Risk Advisory, Australia & New Zealand at JLL, said.
“All of these items impact on the commercial return of an investment property and more time to make decisions now can lead to lower risks longer term.”
Better Data, Quicker Decisions
Improvements in the quality and availability of property data are driving the shift.
Lenders already hold large volumes of information on the properties in their loan books, such as tenant histories, cash flows, yields, and market movements.
But gaps and inconsistent records can make that data hard to use when a fast valuation call is needed.
Mr Winfield said better access to reliable property information allowed valuers to spend less time gathering facts and more time applying professional expertise.
“Factual information which is obtained faster enables valuers to focus on the parts of a process which add more value to the client,” he said.
“Focusing time on market evidence and extrapolating this evidence to draw a conclusion on value is a core part of the valuation process.”
Middle-market Properties the Testing Ground
According to Mr Winfield, the biggest opportunity lies in middle-market office, retail and industrial assets valued below $20 million, which make up a large share of commercial lending portfolios.
Rather than applying the same valuation process to every property, lenders are exploring whether different levels of assessment can be matched to the complexity and risk of each asset.
That could allow straightforward properties with strong data histories to move through a streamlined process.
“Where middle markets have uniform property data which can then transfer to information such as consistent rental rates or similar values per square metre, they are more suited to a more data-driven outcome than assets in more complex or unique settings,” he said.
“Transparency on information currently has limitations and caution around items such as incentives in leases or capital works undertaken are not always made available.”
AI will support valuers, not replace them
While AI can process data and identify patterns far more quickly than traditional methods, Mr Winfield said professional valuers will remain central to the valuation process.
Instead of replacing valuers, the technology is expected to reduce time spent collecting and checking information, allowing experts to focus on market interpretation and professional judgement.
“It’s not a question about if AI will become part of a valuation process but what is the right mix of talent and infrastructure,” Mr Winfield said.
“Valuers will focus more on interpreting the data and less time reproducing the facts, which should, if used with the right balance of AI, produce a more streamlined outcome.”
Mr Winfield said AI is only as valuable as the expertise applied to its outputs.
“AI is enabling valuers to access information faster and generate efficient, consistent outputs,” he said.
“Good data and AI don’t replace the valuer's analysis; it helps to clear the path. The data still has to be interpreted by someone who understands the asset and the market.”
