Perceived Accuracy of Modern Technologies in Property Valuation: Evidence from South Africa

Abstract

Property valuation accuracy remains a persistent concern within the real estate industry, particularly in developing markets where valuation inconsistencies undermine market confidence and professional credibility. Although Artificial Intelligence (AI), Geographical Information Systems (GIS), Automated Valuation Models (AVMs) and machine learning are increasingly associated with enhanced valuation accuracy and analytical capability, professional confidence in these technologies remains underexplored. This study investigates property valuers’ perceptions of modern technologies' ability to improve valuation accuracy within the South African property valuation profession and examines whether these perceptions differ across demographic and professional groups. A quantitative survey design was adopted using a structured Likert-scale questionnaire distributed to registered property valuers in South Africa, yielding 340 valid responses. Descriptive and inferential statistical analyses, including Spearman’s correlation analysis, Kruskal-Wallis H tests and pairwise Mann-Whitney U tests, were conducted. The findings reveal a pronounced divergence in perceptions across technologies. GIS was consistently perceived as a trusted and established valuation support tool, whereas perceptions regarding AI remained divided and varied significantly across registration class, experience groups and valuation specialisations. Less experienced valuers and candidate valuers demonstrated significantly greater confidence in AI technologies than their experienced, professional, registered counterparts, suggesting a generational divide in technology acceptance within the profession. Integrated technological approaches combining AI, GIS, AVMs and satellite imagery were perceived more positively than standalone technologies. The study identifies a critical contradiction between the demonstrated technical capabilities of AI-driven valuation systems and the ongoing professional hesitation toward their adoption. The findings suggest that trust, transparency, and explainability may be central determinants of technological adoption within professional valuation practice.

Keywords: Artificial Intelligence (AI), Geographical Information Systems (GIS), Modern Technology, South Africa, Valuation Accuracy

DOI: 10.54941/ahfe1008170