Property Standard Index - a range of uses in portfolio management
The Property Standard Index is a valuable asset management tool that was developed by the former Department of Housing in conjunction with the CSIRO and Queensland University of Technology. It assists property portfolio managers to make informed strategic decisions about the management of departmental properties.
The Property Standard Index provides information on the performance of the asset, and as such allows the department to improve its decisions in relation to the management and use of its residential properties, at both an individual property, and overall portfolio, level.
The Property Standard Index allows the allocation of resources to priority areas based on real need for activities such as:
- maintenance and upgrade planning and delivery
- forecasting and measuring the effects of investment
- managing the movement in the portfolio towards agreed standards of amenity
- annual valuation and depreciation processes, and
- asset management decision-making.
For example, the department may objectively specify the desired Property Standard Index for its dwellings and then be in a position to calculate the deficiency ratio between any building, or group of buildings, and the desired index. This difference can easily be converted to provide the required expenditure and actions needed to address the difference.
The Property Standard Index has been recognised for its flexibility and reporting capacity, not only by the department, but also within the private sector. The PSI was commercialised in 2008.
Property Standard Index model puts Queensland out in front
In 2000, the former Queensland Department of Housing revealed a new decision support model designed to improve the management of its building portfolio, then valued in excess of A$9 billion.
The Property Standard Index, a tool for portfolio and property management decisions, was launched at the International Council for Research and Innovation in Building and Construction (CIB) conference held in Brisbane in 2000. The Property Standard Index was jointly developed by the former Department of Housing in a research alliance with Australia's CSIRO and the Queensland University of Technology (QUT).
The Property Standard Index has greatly improved the targeting of scarce financial resources designated for a large portfolio, to those properties that will benefit the most. This is achieved through comprehensive data collection and analysis and a simple user interface. Decisions can be more readily made with regard to the prioritisation of capital investment, maintenance expenditure and financial planning.
Improvements to the Property Standard Index continue to be developed and tested by professionals in the department, CSIRO - Division of Building and Construction, and QUT.