A house comes with walls, a roof and a layout buyers can picture themselves living in. Vacant land has none of that, so its value rests on what can be done with it. That makes land valuation more technical, and more sensitive to planning rules and site conditions, than many owners expect.
What State Valuers Look At
State land valuation agencies publish the factors they consider, and they are a good guide to what private valuers weigh as well. Western Australia's Landgate lists location, land area, lot configuration and topography, zoning and development potential, and features such as views or proximity to busy roads. Queensland's land valuation guidance refers to the land's present use and zoning, its physical features and other land-use constraints. Together, these give a practical checklist.
Zoning and Permitted Use
Zoning is usually the biggest single factor, because it determines what can be built: one house, several dwellings, commercial premises or rural activity. A rezoning or change to planning controls can move value significantly in either direction. Queensland's guidance shows how zoning even affects the method: land zoned rural is valued using a different approach from rural-residential land, and where a property has more than one zoning the predominant zoning drives the method.
Size, Shape and Frontage
Bigger is not always better. A regular block with good street frontage is easier to build on than a narrow, irregular or battle-axe lot. The valuer asks how efficiently the land can be used within the planning rules, and what the typical buyer would build.
Topography and Ground Conditions
Flat, stable land is cheaper to develop than steep or rocky land. Extensive earthworks, retaining walls or poor soil add cost, and buyers allow for that in what they will pay. Site investigation reports, where available, help the valuer assess these costs.
Services and Access
- Availability of water, sewerage, electricity and telecommunications.
- Quality of road access, and any easements or rights of way.
- The likely cost of connecting services if they are not already there.
Planning Overlays and Legal Constraints
Planning overlays, heritage controls, vegetation protection and title restrictions can limit what can be built or add cost. Easements, such as a drainage easement, also need to be considered. In one Queensland Land Court case reviewed in a state valuation context, the court found no basis to adjust the unimproved value for the effect of a drainage easement at the valuation date, which shows these matters are assessed on the evidence for each case. Ask your council for a planning certificate or property report so that you know what applies to your block before it is valued.
Market Value vs Unimproved Value
The unimproved value shown on a rates or land tax notice is a statutory figure. Landgate explains that unimproved value is the value of the land only, reflecting what it would be expected to sell for in its current condition, and that it is set as at a retrospective date based on vacant land sales at that time, rather than the current market. Different states use different valuation dates and methods. This is why a council or state figure can differ from a private market valuation, and why it should not be used as evidence of today's market value for a sale, loan or dispute.
Location and Demand
As with any property, proximity to schools, transport, employment and amenities shapes demand. The valuer examines recent sales of comparable land and adjusts for differences in size, zoning, shape and condition. Where sales are scarce, they may use a residual approach, which works backwards from the likely value of a completed development after deducting costs and a developer's margin.
Preparing for a Land Valuation
- Provide the title, survey plan and any council correspondence.
- Share planning certificates and any development approvals or applications.
- Disclose known constraints such as easements, flooding, contamination or vegetation orders.
- Provide soil or geotechnical reports if you have them.
For help valuing a block of land, visit our services page, or contact the team. Our guide to commercial valuation methods may also be useful if the land is for development.
