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The increasing complexity of investment properties has necessitated the application of more advanced valuation and analysis techniques. Following the property cycle of the 1980s/1990s, and the recommendations of several reporters, the DCF method has been promoted in Australia for certain income‐producing properties. The Australian Property Institute disseminated an information paper in 1993 that discussed DCF and suggested a performance approach to its application. Following this, a practice standard was produced in 1996 that was highly prescriptive but which contained a number of confusing passages. With the benefit of hindsight, its publication was premature and it was withdrawn from circulation. A rewrite was commissioned and an exposure draft was circulated in early 1999. It has been prepared as a performance standard in which the valuer is called on to follow a method while disclosing the specifics. However, a number of considerations remain to be finalised, for example, the application of the term cash flow to net operating income, income after finance and income after finance and tax. The preparation of standards is an evolutionary process and the present coverage of the DCF practice standard reflects the market in which it applies.

Discusses the components of valuation expertise as applied to the residual mortgage valuation domain and considers the different levels of analysis at which this expertise is exhibited. Explores the difference between ′true′ valuation expertise and expertness, the implications of the consultant′s ability to work across different domains of specialization by using analogies and the use of both individual and multiple experts in producing a ′domain theory′ which could be utilized in the production of an expert system for the mortgage valuation problem.

Describes the recent economic and land reforms in China, and the consequent changes in the emerging Chinese property market. Analyses the need for property management valuation skills in China in the light of problems of country size, regional differences, the scale of economic reforms and the speed with which they are being implemented, administration and the difficulty of educating a large number of property professionals.

Part 1 of this paper provides an overview of a research project currently being undertaken at the Polytechnic of Wales, engaged in investigating the suitability of expert systems for the valuation of vacant possession residential property for mortgage purposes.

Discusses the development of expert systems (ES) as an improvement on computer‐aided valuation techniques (CAV), due to its allowing the modelling of complex non‐linear and qualitative relationships and processes, such as those which exist within the field of valuation. Explores valuation as a set of processes and details current technology with reference to the impact of CAVs in Australia. Discusses expert systems as the latest stage in the evolution of computer methods which support humans in decision making, outlines ES procedure and gives examples of current applications. Considers the application of expert systems to rating valuation and reviews the theory of ′information chunking.

Part 1 of this paper, published in the last issue of Property Management provided an overview of the research project currently being undertaken at the Polytechnic of Wales investigating the suitability of expert systems for the valuation of vacant possession residential properties for mortgage purposes. This paper will address some of the practical difficulties which developers of expert systems can expect to encounter, and offer a possible solution to the thorny problem of ‘domain appraisal’; ie, the investigation of a particular application to discover whether an expert system might be feasible.

Examines the provisions of the Directive from the European Community to allow professionally qualified individuals to practise anywhere in the Union, from the perspective of the Royal Institute of Chartered Surveyors. Speculates particularly on how the Directive will affect a practicioner in the General Practice Division. Concludes that the Directive poses problems but opens up opportunities. Poses the question “what is a chartered surveyor?”.

Reviews the various types of fraud in which a building society mortgage valuer may become involved. Considers the possible conflicts of interest which could lead to fraudulent practices. Recommendations are made for improving the consistency and accuracy of building society mortgage valuations together with suggestions for ensuring that the valuer is truly independent.

Considers the feasibility study of environmental improvements carried out at Treforest, Mid‐Glamorgan, involving direct higher education participation. Discusses the funding for the study, the study itself, the problems, priority proposals, and implementation. Concludes that the study has provided the mechanism to begin the urban renewal process and, by securing the co‐operation of many agencies, has achieved an integrated approach to environmental improvement.