How Asia Pacific CRE funds are modernising valuation management

The end of the back-of-the-envelope

Valuations underpin every major investment decision in real estate, from pricing and financing to capital raising and performance reporting.

But in Asia Pacific, the valuation process is still largely informal.

While North America and Europe have moved toward a valuation manager model as best practice, appointing appraisal managers or mandating independent reviews, Asia Pacific fund managers have faced less external pressure to evolve.

Without a regional standard driving consistency, many funds manage valuations via spreadsheets and email chains – hard to audit, harder to scale and nearly impossible to extract insights from.

But that is changing.

The signposts point in one direction

Investors are demanding more robust in-place valuation processes, better reporting and greater transparency. Boards are looking to de-risk operations. And regulators in some markets are starting to voice concerns about the governance of unlisted asset valuations.

In Australia, for example, the Australian Prudential Regulation Authority (APRA) has stepped up scrutiny of the superannuation sector, which holds around AU$500 billion in unlisted assets such as real estate. Recent measures include enhanced requirements for valuations and liquidity management.

The Monetary Authority of Singapore has signalled a push for stronger oversight of fund operations, with valuations a core part of that framework.

And Hong Kong’s Securities and Futures Commission has highlighted deficiencies in the management of private funds.

These are just three signposts pointing in the same direction.

When every basis point counts

The Q1 2025 ANREV All Funds Index recorded a total return of just 0.89%, with negative capital growth offset by income. In this climate of narrow margins and uneven performance, valuation quality and analytics matter.

Even small errors can distort reporting, misinform capital decisions or undermine investor confidence. When portfolios span multiple markets, each with its own assumptions and methods, the risks multiply. Valuation Management Services (VMS) can help mitigate risks and defend value.

Acting as an independent reviewer, VMS applies a structured, technology-enabled framework to client-commissioned valuations, helping to:

• Deliver consistent, cross-border valuations via a repeatable, transparent process

• Strengthen internal decision-making by interrogating key valuation inputs

• Provide audit-ready documentation to satisfy stakeholders and build trust

• Scale support for lean or growing teams without needing to restructure internally

Turning valuation into insight

The ARGUS Intelligence platform underpins Altus Group’s approach. Purpose-built to manage property valuations, it streamlines workflows, captures key communications and builds a clean audit trail across review cycles.

ARGUS Intelligence transforms the way investors model, monitor and manage their assets and portfolios by providing instant performance insights. With ARGUS Intelligence, investors can now dynamically drill into data to quickly analyse and compare performance metrics to enhance returns and reduce risk.

Altus already supports some of the region’s most respected managers. Manulife’s real estate group, for instance, has publicly noted “an additional level of clarity” and measurable improvements in “collaboration, reporting and data insights” through Altus Group’s VMS approach.

The audit trail advantage

Today’s fund managers are formalising valuation governance to meet investor expectations, build internal confidence and scale more efficiently. They know well-documented valuations can support fundraising efforts, accelerate approvals and strengthen partnerships.

But they also know sound valuation governance is in step with regulators calling for stronger controls, clearer audit trails and more robust processes for unlisted assets.

Valuation process discipline isn’t just good practice. It’s a sign that a fund is ready for investor scrutiny and regulatory oversight. As competition for capital intensifies, the ability to demonstrate robust valuation processes will continue to set leading managers apart.

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