Land value

Land value

In most instances it has been at least three years since the land was last valued for council rating purposes.

Land is valued at 1 July of the valuing year and reflects changes in the property market since the previous valuation.

Factors our valuer consider when comparing property sales to the benchmark properties include the land's:

  • most valuable use
  • zoning, heritage restrictions or other use contraints
  • location and views
  • size, shape and land features
  • nearby development and infrastructure.

Any concessions and/or allowances applying to your land under the Valuation of Land Act 1916 will be printed on your Notice of Valuation or land tax assessment.

The legal effect of encumbrances such as easements, rights of way, title covenants, caveats and 'restrictions to user' are not considered when determining land values. Only the physical effect of encumbrances can be organised in the valuation and land value review process.

Personal circumstances, council rates and land tax liability are not considered when determining land value.

Most land is valued using mass valuation where properties are valued in groups called components.

Inspections of various sites are undertaken as part of the sales analysis and valuation program.

Heritage properties are recognised under two different Acts for rating and taxing purposes.

More information can be found in the valuation of heritage restricted land policy.

If you feel that features or your land or the surrounding area have not been considered, please refer to what if you have concerns.

You can use our land value search tool here.

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 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:

  • 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.

Differences in land values between neighbouring lands are common. Your neighbour’s land may have a different shape, dimensions or area to your land. These factors may affect the way the land may be used or developed.

Some of the other reasons why your neighbour's land value might be different to yours are described below.

Physical attributes

Your neighbour's land may have different physical characteristics that affect its land value. For example, your neighbour's land might have poorer views, a steeper slope or inferior access.

Constraints on the use of the land

Land adjoining your land may be subject to different constraints. These may be due to zoning, easements, heritage restrictions or other constraints. For example, your neighbour’s land may have be subject to flooding which can reduce the value of the land.

Land use

Your neighbour's land may be used for a different purpose to your land (e.g. residential vs commercial use).

Concessions and allowances

In some circumstances, concessions and/or allowances applying to land under the Valuation of Land Act 1916 (the Act), may reduce the land value.

If you feel that your land value is incorrect you may request a review.

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