For South Africa to attract international property investors, we need to align ourselves with international standards of measure. This is true even for property measurements and usable space.
All is not lost as South Africa is set to standardise the unit of measure to a newly proposed International Property Measurement Standard (IPMS). The proposed standardisation comes after a group of 22 associations from around the world formed a coalition named International Properties Measurement Standards Coalition (IPMSC). This standard of measure was implemented last year October.
The reason for the coalition being formed was to standardise measurement and description of use (space) of property making investment measure universal across the globe.
What equates to land value or investment in one country may not be seen as property investment in another. Is parking space allocated to investment property say in America? This would make financial reports universal and foreign investors will have clear descriptions of what they are investing in.
Transparency instils confidence and foreign investors will now be able to compile future investment studies based on international standards. Property can thus be sold and allocated for plans, making it easier for foreigners to invest.
Valuing property is all about square meters, and the Standard Setting Committee chairperson Max Crofts says the World Bank welcomes this standardisation which will create transparency in international financial reports.
According to Gebhardt, representing South Africa on the IPMSC we should see implementation of the standard of measure by 2014. It will be a process in which South African Property Owners Association will have to adopt this standard of measure into practice.
With various legislations governing property measurements in SA ,it is understandable that we should align our measurement systems to accommodate and adhere to international standards. Sectional title laws have different measures to free standing property. Bricks and mortar along with land are what equates to property value.