Valuation method

We use a mass valuation approach to value land

Valuers can make individual valuations when needed. But for most land, we use a mass valuation approach that follows these steps:

1. Group similar properties
Properties in a group have similar attributes and are expected to experience similar changes in value. These groups are known as components.
2. Select primary and reference benchmarks

Benchmark properties represent most properties in a component. Reference benchmarks represent higher and lower valued properties and other subgroups.

3. Analyse a broad range of sales evidence

Valuers analyse property sales, including vacant land and improved properties. They then adjust the sales price to: 

  • remove the value of improvements
  • reflect the property market as at 1 July in the valuing year. 

See the benchmark component report for sales the valuer used to value the benchmark properties in your component for the 1 July 2023 valuing year. 

See the valuation sales report for some sales valuers considered during the valuation process. 

4. Value the primary benchmark

Valuers individually value the primary benchmark to calculate the rate of change from last year. They consider factors such as the land’s:

  • most valuable use 
  • zoning, heritage restrictions or other use constraints
  • size, shape and features
  • location and views
  • nearby development and infrastructure
The rate of change is called the component factor.
5. Value the reference benchmarks
Valuers review the values of the reference benchmarks against the component factor. They do this to check the quality of the proposed valuations.
6. Apply the component factor
Valuers apply the component factor to the properties in the component. This determines each property’s new land value.
7. Check for quality
Our quality assurance process ensures new values are accurate and consistent. For more information, see Quality assurance.
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