Follow Sally’s journey across Australia as she looks at valuation topics and local market activity in our capital cities.
TODAY’S TOPIC: Land Valuation
Whether you are looking to buy, sell or sub-divide, understanding the factors that contribute to the value of land will give you the upper hand in making crucial decisions about your property purchase. Unlike buying a house where you have a dwelling to inspect, you will largely need to look past an empty block and envision the future possibilities for development and be mindful of the limitations.
What factors contribute to determining the value of land?
A common misconception people have is assuming the bigger the block, the more it will be worth, this is not always the case. Here are a few of the most common factors a Valuer will take into consideration when determining the value of a block of land:
- Is the block a standard size with in a particular subdivision? If yes – it will generally be worth the same as the other blocks within it
- What is the maximum house size that will fit on the block, including minimum frontage for driveways
- Is it a Corner block? In some instances this may be a positive if there is potential for dual access, allowing for subdivision in future or it may be perceived as a negative if it will limit rear private yard space potential.
- Is the block narrow, limiting future development opportunities?
- A sloping blocks means higher building costs, but in some instances may mean better views.
- Are there water, City or Parks/Nature Views?
- Are there surrounding properties or development plans that may affect the views?
- Take special note of the direction the block faces. This will greatly affect the future dwelling in terms of temperature, heating/cooling costs, mould/damp problems and other accelerated wear of the building itself due to the elements
- North and North-East seem to be the preferred aspect in most parts of Australia
- Risk Factors:
- Are there any restrictions on the Certificate of Title
- Be aware of zoning restrictions that may limit or prevent future development along with issues such as flooding, landslip, mine subsidence etc.
- In some instances you may need to get the soil tested. Depending on the foundations, building cost can vary greatly.
- Popular suburbs
- Courts and cul-de-sacs are often coveted amongst buyers due to perceived additional privacy and security
- Close proximity to noise pollution like highways, trains and airports
Location is arguably the biggest factor when determining the value of land, however you can see the importance of looking beyond location.
This is only a small sample of considerations that we recommend you look at when looking at the value of land, please contact us if you would like to learn more about our property valuation and advisory services.
Local Property Market Update: Sydney
Today we are in New South Wales, let’s look at the local property market in the Sydney metropolitan area.
SUMMARY: Metro Residential Sales
“The Sydney property market is currently experiencing a high level of activity and rapidly increasing market largely due to low interest rates with an increased demand for property throughout most areas in Sydney. Agents are reporting a shortage of listings leading to competitive bidding and offers from prospective purchasers. In many instances properties are selling over reserve or beyond initial price expectations.” Source – CoreLogic RP DATA
|Property Type||Median House Price|
*Data sourced from CoreLogic RP Data.
If you would like to find out more about our property advisory and valuation services in the Sydney metro area, please contact our local team.