RICS Valuation – Global Standards (Red Book Global Standards) is now widely used in Australia, providing a globally recognised framework for property valuation that underpins the trust, consistency and transparency that is vital for local and cross-border property investment. However, this has not always been the case.
The compulsory acquisition of sand dunes on the West Australian coast, for the construction of a fort to repel Japanese invasion in the early 1900s, led to the basis of what is now known as 'market value'.
In Spencer v Commonwealth [1907] 5 CLR 418, the then-recently created High Court of Australia established the principles of an exchange, a willing buyer and a willing seller, a marketing period and so forth, which formed the normative definition of value that was then used in Australia for the next century, including by the relatively modest number of RICS members practising locally.
The demand by clients for valuations prepared in adherence with Red Book Global Standards was, effectively, non-existent until the global property boom in the 1980s, when international investors started to take a greater interest in Australia. However, this situation changed significantly around the turn of the millennium.
Introduction of IFRS in 2005
While matters concerning land and fair trading are within the jurisdiction of Australia's state and territory governments, matters concerning overseas and interstate business are within the jurisdiction of the federal government.
Accordingly, states such as Queensland and Western Australia require valuers to be registered with the state government under the land jurisdiction, whereas other states, such as Victoria and New South Wales, do not have registration and govern valuers under their respective fair-trading laws.
The federal government's powers concerning overseas and interstate business are important to valuers, as they govern financial reporting nationally and so include international accounting, reporting and valuation standards.
To reduce the cost of capital for Australian companies, build cross-border investor confidence and let local entities compete seamlessly overseas, the Australian government required all reporting entities to transition to the Australian equivalents of the International Financial Reporting Standards (A-IFRS), with effect from financial reporting periods commencing on or after 1 January 2005.
The philosophy behind the adoption of IFRS was that idiosyncratic national accounting rules should not be a barrier to international companies doing business in Australia or to Australian companies doing business overseas. For example, Coca Cola (in those days) and Amazon (in these days), should not rule out growing their businesses in Australia because of unusual, localised accounting rules.
This was a watershed moment for valuation in Australia, with valuers now required to comply with the IFRS and provide valuations on the internationally defined basis of fair value, as guided by the International Valuation Standards (IVS) and amplified by Red Book Global Standards.
Effectively, the jurisprudence-based assessment of market value was replaced by the IVSC-codified basis of market value, with Red Book Global Standards providing detailed guidance on professional valuation practice.
Foundations of trust
It is not only chief financial officers (CFOs) who gain confidence from the use of Red Book Global Standards in Australia but also other participants in financial markets, such as auditors, regulators (e.g. the Australian Securities and Investments Commission, the Australian Prudential Regulation Authority, the Foreign Investment Review Board and the Australian Securities Exchange) and investors, as compliance and assurance gain continually greater traction around the world.
This is particularly important in the context of institutional and cross-border investment, which is a major driver in the Australian property market.
The Knight Frank Wealth Report 2026 found Australia to have the fifth highest level of cross-border investment, at US$12.8bn in 2025, making trust, consistency and transparency in property valuations essential to the Australian property markets and economy.
Further, the high level of adoption of joint ownership structures for both direct property and unitised property investment in Australia means that rigorously based valuations are essential for trust between co-owners.
Standing of Red Book Global Standards in Australia
Red Book Global Standards are now widely used by RICS members in Australia, taught in property courses at Australia's premier universities and extensively addressed in leading Australian valuation textbooks.
As Peter Spiller FRICS, national head of property risk at one of Australia's leading banks, Westpac Banking Corporation, has said:
'For 50 years, RICS and its Red Book have provided a globally recognised framework for property valuation in Australia, underpinning trust, consistency and transparency. By aligning with international standards, it enables Australian assets to be readily understood by global investors and lenders, supporting capital flows and cross‑border transactions. Red Book-compliant valuations provide a common language for banks, investors and corporates, improving decision-making and reducing risk. Its emphasis on professional standards, governance and a clear methodology strengthens confidence in valuation outcomes.
'Overall, it has been instrumental in enhancing market integrity, supporting efficient capital allocation and positioning Australia as a credible, investable real estate market within the global economy.'
To enhance the relevance of Red Book Global Standards to the Australian market, and so increase its applicability and adoption, in 2025 RICS published the RICS Valuation – Global Standards: Australia national supplement.
The national supplement addresses issues arising from Australian consumer, privacy and taxation law. Future editions may include reference to emerging Australian regulatory issues such as the valuation of native title rights, the valuation of indigenous cultural loss and the valuation of water rights.
The combination of Red Book Global Standards and the Australian national supplement provides RICS members in Australia with a powerful marketing advantage when dealing with multinational clients seeking valuations for financial reporting purposes.
The adoption of Red Book Global Standards by Australian-based RICS members preparing valuations for multinational client CFOs provides confidence that a consistent basis for and implementation of the valuation process has been adopted.
This article is the fifth in a series to mark the 50th anniversary of Red Book Global Standards. The series looks at how RICS' valuation framework is applied in a selection of non-UK jurisdictions and reflect on five decades of Red Book Global Standards more broadly.
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