The Commerce Commission has announced (4 December) that Valocity, a property data and digital services provider in New Zealand, will introduce changes to its online property valuation ordering system (VOS) to enhance competition among property valuers and benefit consumers.
This decision follows an investigation into concerns that Valocity’s platform restricted competition by setting fixed fees for Full Market Valuations (FMVs) and determining which valuers performed the assessments. These practices were seen as limiting valuers’ ability to compete for work, potentially leading to higher costs for borrowers requiring FMVs, typically mandated for high-risk properties or loans.
Currently, borrowers cannot select their own valuer and must pay the fees determined by Valocity. The changes, expected to roll out by March 2025, will allow borrowers to reject fees set by Valocity and request quotes from multiple valuers through the platform.
Commission Chair John Small welcomed the initiative, emphasizing its potential to foster competition and reduce costs for tens of thousands of New Zealanders annually. “We encourage consumers to consider their options when deciding the best deal for them, and it is no different for FMVs,” he said.
The Commission has also reminded other industry participants of their obligations under the Commerce Act, which prohibits agreements that substantially lessen competition.
These developments are anticipated to make the property valuation market more transparent and consumer-friendly, providing borrowers with greater choice and flexibility.
