Wason Khongchantr, MRE.

Honorable guests are as follows:

Mr. Graham F Chase FRICS FCIArb FInstCPD

President

Royal Institution of Chartered Surveyors (RICS)

Mr. Alan A Cooke

Chief Executive

Irish Auctioneers & Valuers Institute (IAVI)

Dr. Valmond Ghyoot

Professor of Real Estate, University of South Africa

Former President, African Real Estate Society

Ms. Danuta Jędrzejewska - Szmek

International Representative

Polish Federation of Valuers' Associations (PFVA)

Mr. Marion R. Johnson, CAE

President

International Association of Assessing Officers (IAAO)

Mr. Robert G Johnson

Executive Director

National Association of Review Appraisers (NARA)

Mr. Bob Myroniuk, Esq.

President, Association of Real Estate License Law

Officials (ARELLO)

Mr. Richard D. Powers, MAI, SRA

President, Appraisal Institute (AI)

Mr. Joseph J Vella, MAI, CRE, FRICS

Chairman

Internatioanal Valuation Standards Committee (IVSC)

What are the prospects for you country's real estate market for 2007 compared to 2006?

Mr. Chase, RICS: The big change will be the introduction of a UK REIT for the first time. This will open up the commercial property investment to a much wider range of investors, and increase liquidity, encouraging institutional investors such as pension funds to increase the weighting of property in their portfolios. I expect all the major real estate sectors to do well against a backdrop of another year of firm economic growth, though worries over inflation are likely to push interest rates somewhat higher, so it will not be entirely good news.

Mr. Cook, IAVI: The Irish retail and office markets are likely to remain strong, in keeping with the buoyant Irish economy, which remains among the strongest in the European Union. A slowdown in the Irish residential market became evident in September/October 2006, following over twelve years of sustained strong growth. This slowdown will continue in 2007 and is a reflection of greater synchronisation between supply and demand. The single other issue that impacted on the residential market nationwide is hgher mortgage interest rates, which followed rises by the European Central Bank. However, even with these and some further projected increases, Irish interest rates will remain low compared to historic norms. A continued reversal from traditional emigration to immigration (10% of Ireland's population is foreign) should sustain the residential market going forward.

Dr. Ghyoot, AfRES: South Africa has just experienced its 30th consecutive quarter for economic expansion and the longest business cycle since 1945. Real GDP growth of 5.1% is expected for 2007. The real estate sector is being driven by the strong economic environment and a booming black middle-class. The commercial and housing sectors are the most obvious winners. The most recent recorded average return on commercial property was 31% but the boom in residential property prices is over, with the most recent increase being 13%, year on year. Despite interest rate increases and a severe construction cost increases, the housing sector is expected to remain strong. However, novice investors in the buy-to-let residential market, encouraged to invest in real estate by the financial press, did so without understanding the property market and especially its submarkets. Many have burnt their fingers and more will do so during 2007.

Ms. Jędrzejewska - Szmek, PFVA: After may 2004 (Poland's membership of Europeen Union) real estate market is still developping. In all sectors of market (land, appartments...) prices strongly inrcreased, espacially in big cities. Only in Warsaw (capital) the prices of appartments grew in 2006 about 70%. Prospects for real estate market are good – land for development is looked for, apartments are sold immediately, credits in 2006 were cheaper than in 2005 and should be more accessible in 2007.Of major significance is the rapid development of the property investment market with many funds now seeking scarce investment grade product. Prime commercial yield in Warrsaw are now as low as 5.5%. Lower growth, but still high, is observed in other cities e.g. Gdansk-about 50%. Generally a smaller increasing is predicted this year (2007) , but market of houses will observe big growth.

Mr. Johnson, IAAO: A recent article in the USA today newspaper reported that home prices across the United States are declining in 2006 and they are expected to continue declining in 2007. Across the country home prices are down 1.2 percent. The biggest decline is in the northeastern part of the United States where prices have dropped 4.8 percent. I would estimate that this trend will continue into 2007.

Mr. Johnson, NARA: Great! Our economy is good, out stock market is up and interest rate are low. 2007 is looking very good with few if any bumps in the road.

Mr. Myroniuk, ARELLO: ARELLO expects that in most regulatory jurisdictions the number of new license / certificate / permit applications will be steady and that the number of complaints filed and investigations conducted will increase. To remain competitive, real estate individuals and organizations will continue to develop innovative business models and fee structures to meet consumer demands. In both Canada and the United States, “real estate fraud” is of growing concern for regulators, the general public, and financial institutions that invest in real estate. Real estate fraud may occur in various ways. Fraud may be committed by an appraiser who intentionally misrepresents a property on an appraisal and/or intentionally overvalues the property. Fraud may also occur when loan application documents are falsified, for example, falsifying proof of identity or income. Appraisers, real estate brokers, and mortgage brokers must all practice their business in compliance with provincial and federal laws and regulations, and they must adhere to uniform standards of professional practice. In accordance with b and c above, regulators must continue to monitor industry trends, emerging business models, and complaints that are filed to ensure that laws and rules are adequate for public protection.

What are the prospects for the global real estate market for 2006 compared to 2005?

Mr. Chase, RICS: Global trade imbalances, if unwound in a disorderly fashion, would bring to an end the rising risk appetite of investors, cooling assets markets, but barring this caveat, the weight of global capital looking for a home in real estate shows no signs of diminishing. Investors are spreading their nets wider and wider, as new markets are judged worthy of their attention.

Mr. Cook, IAVI: While events in the world's major economies have a global effect, I do not believe that there is a single and uniform global property market. Each region, and indeed most countries within each region, operate to unique criteria. As an example, the interest rates set by the European Union's central bank cannot suit 25 separate national economies, all of which will vary in strength at any particular time. The rate will undoubtedly be inappropriate for some countries and some national governments might well opt for different rates had they the autonomy to do so.

Dr. Ghyoot, AfRES: Globalization will continue to increase. International diversification is being recognized as essential and trade-offs between investments in different national markets will take place as investors spot opportunities. More adventurous investors will benefit from exposure to emerging markets in Africa and East.

Ms. Jędrzejewska - Szmek, PFVA: The level of risk in EU shouldn't increase, prospects for real estate market should be good.

Mr. Johnson, NARA: The global market as a whole is good – rents and values are up and the world keeps getting more international in terms of Real Estate investors.

Mr. Myroniuk, ARELLO: ARELLO is currently assisting the real estate associations in a few Asian countries with development of a regulatory structure for real estate, appraisal and mortgage. The existence of education standards, codes of professional conduct, and regulatory law enforcement, in countries where it previously did not exist, may lead to license recognition agreements between those countries and Canadian and U.S. regulatory jurisdictions. The Internet will continue to play a key role in real estate as new concepts for marketing real estate and real estate services emerge. Regulators will need to monitor trends and new business models to ensure that laws and rules are adequate for public protection.

What innovations emerged in your country's and the global appraisal profession in 2006 and what innovations do you see emerging in 2007?

Mr. Chase, RICS: We have seen Market Value become the dominant influence on Fair Value for the purposes of International Financial Reporting Standards. This has coincided with the transIation of the RICS Red Book valuation standards into five languages including Chinese. I expect this trend of wider application of international valuation standards based on Market Value to continue through 2007 and beyond.

Mr. Cook, IAVI: In the case of Ireland, some loose lending criteria may store up difficulties for mortgage lenders in time. The drift towards mortgages of 30-40 years, when the traditional mortgage was 20-25, is unwelcome and belies the oft-stated belief that current interest rates, which are lower than historically normal, make borrowing more affordable. There is anecdotal evidence of appraisers being put underpressure to maximise valuation figures and to present appraisal reports in a benign manner. Such issues were being addressed by the IAVI towards the end of 2006.

Dr. Ghyoot, AfRES: The South African Council for the property Valuers Profession as introduced Continuous Professional Development (CPD) requirements. This will be implemented from 2007. The council is also tightening entry requirements to the industry. This will improve standards and enhance the industry’s reputation. Internationally, the most significant development has been the emergence and strengthening of the IVSC. This augurs well for international valuation standards and will stop attempts by regional interests to gain international acceptance of their practices.

Ms. Jędrzejewska - Szmek, PFVA: The governement should be involved in participation in credits' fees in dwelling investments to make costs of credits lower. Planning and zonning should cover bigger than in 2006 part of the country (for instance – the capital of Poland – Warsaw- has only 13% of its surface covered by being in force Masterplans.

Mr. Myroniuk, ARELLO: 2006 saw the continued use of Automated Valuation Models (AVMs) by appraisers. AVMs differ from the independent appraisal process in that the appraiser bases the property value on abstract computer models. While AVMs may be appropriate in some cases (for example, low ratio lending on homes in large homogenous neighborhoods) AVMs cannot judge the condition of a property or neighboring properties nor can an AVM distinguish between renovated and non-renovated properties. Appraisers and regulators will continue to be challenged by AVM providers who market their product to appraisers and seek regulatory “endorsement” of the AVM methodology. Governments and regulators at all levels will continue to be challenged with balancing development and conservation. New avenues may emerge that allow for conservation of privately held resources while providing some economic benefit to the property owner. The appraisal industry may need to develop specific rules of professional practice to address how these properties are valued and compared.

Mr. Johnson, IAAO: The innovation that has the biggest impact has been in the aerial photography field. Appraisers can now obtain photos of properties that show all four sides of the property which allows them to reduce the amount of actual field work that must be done. This new technology allows you to measure the property and to detect any changes that have occurred to the property since the last photo period. The other area where we have seen rapid growth is in the area of automated valuation systems that are now available over the internet. There are several internet sites available where home owners can get the value of their property by simply running a program on the web.

Mr. Johnson, NARA: Business as usual, except the environmental issues are now a great concern for appraisers.

What do you assess the real estate markets in Thailand? What would be the effects of the recent coup d'etat in Thailand? Is there any similar case studies in other regions as you know and their effects appeared?

Mr. Chase, RICS: Thailand is viewed as a strong emerging market in the fastest growing region in the world (despite the 14.84 per cent drop in the value of the Stock Exchange of Thailand on “Black Tuesday”, reported as I write this!) While the coup d’etat may have some short term effect on the real estate market overall – and foreign sentiment in particular – provided the government restores the democratic system as quickly and efficiently as promised, the negative impact should be minimized.

Mr. Cook, IAVI: Clearly anything viewed as instability in any country will impact on its economy, including its property market, as investors show concern.

Dr. Ghyoot, AfRES: Thai real estate markets appear sound. The military takeover has had little effect on international sentiment.

Ms. Jędrzejewska - Szmek, PFVA: Even being in Europe we can observe political ups and downs, effecting real estates markets (tax changes, limits in access to real estate market for foreigners). I hope the Thai real estate market will be more open for foreigners in the future. There are some limitations for foreigners buying property in Poland, but no such restrictive as in Thailand. Early anxieties turned out to be unwarranted.

Mr. Myroniuk, ARELLO: In November 2006, ARELLO leadership met with a delegation of Thailand real estate professionals while at the National Association of REALTORS® (N.A.R.) Convention in New Orleans. The Thai delegates seemed very optimistic and encouraged about their country’s real estate market. They have requested ARELLO’s assistance in procuring statutes from other countries to use as a reference for Thailand to pass a license law. The Real Estate Broker Association (REBA) of Thailand and N.A.R. are co-sponsoring a multi-week educational opportunity in January 2008 to allow real estate professionals to earn the N.A.R. Certified International Property Specialist (CIPS) designation. The program is being marketed in Thailand, Asia and the Unites States. Included in the program schedule are special tours of Bangkok, the Floating Market, the Grand Palace and the Emerald Buddha Temple. The offering of the CIPS program in seems to be REBA’s invitation to real estate professionals from around the world to network and experience real estate in Thailand.

Mr. Johnson, NARA: Thailand will enjoy more foreign investment in 2007. Many companies and investment groups are looking at investing. The coup has no effect on foreign investment in Thailand.

Please share your ideas on increasing global cooperation among appraisal professionals.

Mr. Chase, RICS: This is a priority for RICS as a global professional body and valuation standard setter, and for me personally. I have high hopes that the spread of international valuation standards and the professionalism of valuers will continue. Just a few days ago I signed an agreement with the Vietnamese Finance Ministry to help that country introduce international valuation standards and to train valuers to RICS standards through the College of Estate Management based in Reading, UK. This follows other, similar RICS initiatives with the Chinese Government, valuation bodies in the PRC, and leading universities, for example Tongjii in Shanghai and Tsinghua in Beijing.

Mr. Cook, IAVI: The IAVI is a member of the IVSC and of TEGoVa and believes that co-operation is best fostered through such global and regional organisations.

Dr. Ghyoot: Global Cooperation. Appraisers and the valuer’s world wide should support the IVSC initiative. A part from its current role in standard-setting, the IVSC should start to actively develop textbooks and other study material for students

Mr. Myroniuk, ARELLO: Professional associations serve as a venue for appraisers to network and share information. Consideration could be given to expanding the activities of existing associations to a more international in scope, including education programs and professional designations recognized worldwide. The appraisal industry might consider outreach to related industries internationally such as architecture, finance, structural engineering and development for additional networking opportunities.

Ms. Jędrzejewska - Szmek, PFVA: Extremely needed. The cooperation between organisations than private persons should be more effective. The main fields for exchanging ideas – professional standards, civil insurance for appraisers and proper image of the appraisers as professional group. Incresased cooperation between valautaion associations worldwide is particularly important in relation to valuation standards and participation in IVSC.

Mr. Johnson, IAAO: I think a series of mass appraisal/automated valuation summits would be a great opportunity for appraisers around the world to share knowledge about the appraisal industry.

Mr. Johnson, NARA: Cooperation is needed and must become more important as firms and investors look to the international markets.

Mr. Vella, IVSC: The International Valuation Standards Committee celebrated 25 years as an international standard setter during 2006. The fundamentals of the IVSC have been in place for a long time – a governance structure; an agreed definition of market value; global representation; and perhaps most significantly, considerable trust, goodwill and co-operation amongst key players. Thus, IVSC was well placed to respond in the late 1990s to the drive towards the development of a global financial language. Over the last few years the IVSC has made spectacular progress– in terms of production of high quality standards, its contribution to the asset measurement debate with both the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) in particular, its evolving corporate governance, and its profile among world regulators and international agencies.

The last edition of International Valuation Standards was published in 2005 and work is well advanced towards published a new edition during 2007. The use of the International Valuation Standards around the world is increasing dramatically particularly for valuations for the purpose of reporting under International Financial Reporting Standards. Major steps have been taken towards substantive convergence of valuation standards on a global scale with a number of countries adopting part or all of the IVS as national standards. During 2006 the IVSC reached an historic agreement with the US Appraisal Foundation. In a memorandum of understanding, known as the Madison Agreement, both parties commit themselves to the ultimate of a single set of high quality understandable and enforceable global valuation standards.

Valuation will be under the spotlight as never before during 2007. FASB is expected to issue an Invitation to Comment ‘Valuation Standards in Financial Reporting’ by the end of 2006. The IVSC proposals for a major restructuring of the organisation will be issued shortly after. Despite the strengths of the IVSC, changes in the environment in which it operates means structural change is needed to enable the IVSC to meet future challenges. The restructuring proposals would lead to an organization that is truly representative of the whole of the profession – business valuers, real property and personal property valuers. The proposals seek to improve the standard setting process of the IVS. Yet technical valuation standards alone do not meet the needs of the international market. There is a need for consistency in education of valuers, best practices and an international body of valuation knowledge and the restructured IVSC will increase its activities in these areas.

Mr. Powers, AI: Today more and more clients for real estate professional services are multinational conglomerates whose principal offices are located in every region of the world. Globalization affects us all. Technology has created a world where just about everyone is on an equal footing to do business–where one is based no longer makes a difference. In his fascinating book The World Is Flat, Thomas L. Friedman describes three eras of globalization: the first focused on the globalization of countries, the second involved companies, and the third, which is under way today, focuses on individuals. This third stage, says Friedman, “is the newfound power for individuals to collaborate and compete globally,” made possible through technology. As Friedman puts it, “Individuals must, and can, now ask, ‘Where do I fit into the global competition and opportunities of the day, and how can I, on my own, collaborate with others globally?’”

If Friedman is right, then we all need to be asking ourselves that same question, as well as what are professional real estate organizations doing to enable us to compete in this new marketplace? Over the years, the Appraisal Institute has maintained relationships and contacts with a variety of international organizations and venues to advance the profession worldwide. We have relationships with a variety of international property related organizations, including FIABCI, FIG, and TEGoVA. These efforts have included our involvement in international gatherings of entities such as the Union of Pan American Valuation

Organizations and the Pan Pacific Congress. More recently the Appraisal Institute has been involved with the International Valuation Standards Committee and efforts to promulgate valuation standards worldwide. In fact, our Board of Directors approved incorporating the International Valuation Standards into our Standards in 2006 in recognition of the growing number of Appraisal Institute members who practice globally.

Recently the professional organizations in Australia, Hong Kong, New Zealand, Singapore and Thailand have had discussions about how to increase their levels of cooperation and the mutual recognition of professional qualifications. International development agencies such as USAID and the World Bank are also recognizing the need for real estate professionals and have provided funding to help train appraisers in the Philippines and Vietnam as part of a long-range program to establish housing finance markets in those countries.

In 2007 all real estate professionals will see more clients whose home offices may be in Switzerland, Germany, Hong Kong or China. They will call because they are diversifying their investment portfolios and are looking for higher returns. We all need to learn about their expectations as well as the protocols of doing business in another country. This developing interaction and cross-fertilization provides us the opportunity to personally benefit by providing services for this ever-growing group of multinational clients.

One of the things I discovered in 2006 as I traveled around the world as President of the Appraisal Institute is that many appraisers come to the profession from background different than those in the U.S. They may be more grounded in the physical components rather than in market analysis techniques. In fact, some may come from countries where a market economy has only recently evolved. Nevertheless, building on our long history of thought leadership in real estate valuation theory, the Appraisal Institute stands ready to further engage to see that this theory is transferred in practical ways to the developed, developing and emerging world. We look forward to working more closely with our partners in Thailand in 2007 and beyond.

Your other opinions as you wish

Mr. Chase, RICS: The acceptance of RICS standards as a global brand is encouraging, and demonstrates the need for professional training and the highest standards, in order to promote confidence in the global real estate market, at a time when cross-border investment is at its highest ever point.

Mr. Johnson, NARA: Environmental assessments and inspections will become more important and used in 2007.

Ms. Jędrzejewska - Szmek, PFVA: Appraisers from different countries are welcomed in Poland. Polish appraisers would be pleased to have an opportunity of work in Thailand.