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:
See the benchmark component report for sales the valuer used to value the benchmark properties in your component for the 1 July 2019 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:
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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. |