When will a bank accept a desktop valuation in Australia?

Banks may accept desktop valuations for lower-risk scenarios (e.g., strong borrower profile, lower LVR, stable suburb sales) where policy thresholds are met. APS 220 requires robust valuation governance, and IVS 2025 sets quality and transparency expectations.

What’s the difference between bank valuation and market value?

A bank valuation is an evidence-based, risk-focused assessment used for lending decisions and may include valuation haircuts per policy. Market value is the price a willing buyer and seller might agree on in an open market; the two figures can differ, especially in thin or rapidly changing markets.

How does Open Banking (CDR) speed up valuations?

With consumer consent, secure CDR data provides verified transaction histories and income patterns that help lenders triage risk and support desktop valuations, reserving full inspections for higher-risk cases.

Australia’s 2025 Property Valuations: APS 220, IVS & CDR

Updated 22 September 2025 · Property valuation insights

Australia’s housing market is enormous and systemically important. This journalist-ready guide explains how APS 220, IVS 2025 and Open Banking (CDR) are changing valuation workflows—what gets a desktop valuation or AVM vs when a full inspection is required—and includes fresh stats reporters can cite.

Why valuations matter more than ever in 2025

Australia’s residential property is valued at ~$11.56 trillion (June quarter 2025), a quarterly rise of over $200 billion, underscoring the scale of household wealth tied to housing. Turnover cooled late-2024 then steadied into 2025 at around ~0.52–0.53 million annual sales, while median values remain well above pre-2019 levels. Precise, defensible valuations matter for lenders, buyers and regulators.

Regulation snapshot: APS 220 now, IVS 2025 in force

APRA’s APS 220 (Credit Risk Management) requires ADIs to maintain prudent policies for valuing collateral at origination and, where appropriate, on an ongoing basis—scaled to risk. The International Valuation Standards (IVS) 2025 took effect 31 January 2025 and have been adopted by the Australian Property Institute (API), lifting consistency and transparency in reports used by banks, investors and courts.

Open Banking/CDR is expanding—bringing valuations closer to real-time

Australia’s Consumer Data Right (CDR) lets consumers share bank data securely with accredited apps. The regime is active in banking and energy and expanded to non-bank lenders in 2025. With consented data and near real-time transaction histories, lenders and valuers can triage risk faster—supporting desktop valuations and AVMs for low-risk LVRs and reserving physical inspections for higher-risk cases.

Desktop valuations, AVMs and when full inspections still apply

Australia’s valuation stack commonly spans: AVMs, desktop valuations, kerbside/short-form, and full valuation inspections. The API aligns with IVS and provides practice guidance; LMI providers publish minimum standards for when desktop assessments may be used versus when full valuations are required.

AVMs & Desktop valuations: faster and more cost-effective when paired with quality sales data, imagery and geospatial sources—appropriate for certain risk bands and refinance/low-LVR scenarios, within APS 220/IVS policy confines. See our Desktop Valuation service.
Full inspections: the standard for complex assets, unique properties, higher-risk LVRs, construction loans or rapidly shifting micro-markets. Explore our Certified Valuation service.

SMSF property valuations: what trustees must show

For SMSF property, trustees must provide objective, supportable evidence at year-end and obtain independent valuers where required—especially for real property, related-party transactions or when circumstances materially change.

Supply, migration and the demand-side story

Pricing dynamics and valuation frequency are shaped by supply and population flows. Value lifted to $11.56 trillion by June 2025; annual sales hovered around ~0.52–0.53 million in 2024 before stabilising. Affordability pressures persisted into 2025, with price momentum varying by city and expectations of monetary-policy shifts in view.

What lenders and fintechs are doing right now

Embedding “value this property” into mobile banking via partner APIs/CDR to trigger an AVM/desktop valuation, escalating to full valuation only when policy thresholds demand it.
Aligning with IVS 2025 and tightening documentation so valuation bases, assumptions, and comparable evidence are transparent and auditable.
Strengthening CDR controls given recent enforcement actions and data-quality expectations.

Copy‑and‑paste pull quotes for reporters

“The ABS puts Australia’s housing at $11.56 trillion (June Q 2025), up over $200b in a single quarter.”
“APS 220 requires prudent initial and ongoing collateral valuation—the backbone of bank decisions on AVM vs full valuation.”
“IVS 2025 took effect 31 Jan 2025; the API aligns Australian practice to IVS.”
“CDR expanded in 2025 to include non‑bank lenders, widening who can plug into consented data.”

Sources & further reading

Australian Bureau of Statistics – Total value of dwelling stock (June quarter 2025).
CoreLogic – Housing market chart packs & sales counts (2024–2025).
APRA – APS 220 Credit Risk Management.
International Valuation Standards Council – IVS 2025; Australian Property Institute – Practice guidance.
Treasury CDR – Consumer Data Right updates (including non‑bank lender coverage).
ATO – Self‑managed super funds: Valuation guidelines (2025).
Australian Banking Association – Digital banking insights (2024–2025).