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:
|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.