Drivers and implications of digital transformation in property valuation practice in New Zealand

Digital transformation involves implementing digital technologies to improve business processes and enhance service delivery. As technology-enabled business practices spark the need for professionals to adopt digital technologies to manage digital data and emerging business processes, this paper examines the drivers and implications of digital transformation in the valuation profession. A qualitative case study approach was adopted and aided by semi-structured interviews among valuers. Based on Gioia’s qualitative data analysis approach, codes were generated from the data and nested into themes to construct the data analysis model. The results showed that competitive and regulatory environments were key drivers of valuers adopting technology, and technology-enabled valuation practice included digital contracting, remote inspections, geocoding of images, valuation modelling and interactive reporting. These emerging changes can potentially trigger competitive parity in valuation firms, the collapse of small-medium firms, cybersecurity issues, and the need for standards and regulation amendments. While digital transformation also improves information management, operational efficiency, and valuation quality, standards and regulations must evolve to align with the industry dynamics to foster improvement in valuation practice. This paper provides a nuanced perspective on valuation practice amid technological changes, emphasising the urgency for regulatory amendments to guide digital transformation in the property profession.