Our methods for calculating land value
Mass appraisal method
We value land using a mass appraisal approach which assesses values for many properties at a common date to ensure values are fair and consistent. To achieve this, we monitor the property market, and record and analyse property sales.
Our valuers may contact the buyer or seller to determine if a sale was genuine, or to get a better understanding of the circumstances of a sale.
We prefer to use sales of vacant or lightly improved properties to assess land values. If there are improvements on the land (e.g., a house, fences, other structures), our valuers don’t include those in their assessment.
Specific methodologies
We value land using one of two methodologies:
- unimproved value methodology for land that’s zoned as rural land
- site value methodology for all other land, including rural-residential land and land that’s not zoned under a planning scheme.
Find out more about how we value rural and non-rural land.
Example
Our valuers are reviewing land values for Brisbane City Council. To value the properties on a particular street, they’ll look at sales records for vacant or lightly improved properties of similar size in comparable areas, with similar elevation, aspect, flood risk, access to services, proximity to infrastructure and urban centres (as well as many other factors).
Several of the houses on the street have recently been renovated. However, our valuers don’t take this into account—as they are only valuing the land.
Units and duplexes (land valuations for a body corporate)
We don’t value units or duplexes separately. Instead, we value the land as a whole as if it were owned by a single owner and issue a valuation to the body corporate.
What we consider when valuing land
Our experienced team of valuers will:
- research the property market and sales trends for different land categories
- consider the land’s present use and zoning related to relevant planning schemes
- account for the land’s physical attributes, for example:
- shape, size, topography, elevation, views
- erosion, flooding and damage
- weeds, pests, carrying capacity and country classification
- access to water and services, as well as access to the land itself
- any mining operations present
- allow for potential or actual constraints to how the land is used due to:
- development or town planning restrictions
- encumbrances including easements, covenants or caveats
- presence of transmission lines, sewerage or stormwater drains, or inspection caps
- heritage status
- contaminated land status
- vegetation protection orders or other legislation
- inspect vacant properties that have recently been sold to verify the condition of the property
- interview buyers and sellers to make sure they’re aware of any circumstances surrounding the sale.
Our valuers don’t account for any existing lease agreements, development approvals or infrastructure credits when valuing land. Sales between family members aren’t assessed as part of the data that influences land values.
All valuations go through a quality assurance and review process to make sure they’re accurate in accordance with the Land Valuation Act 2010.
Example
A few years ago, Abby bought her house in Rockhampton on a 2 hectare block for $270,000. She knows that her house has increased in value and is worth a lot more today. She’s done some work on her garden, planting fruit trees and landscaping the front yard. She’s also had the house restumped to make it structurally sound.
This year, she received her land valuation and noticed that her land value had increased from $135,000 to $170,000.
The value of Abby’s land isn’t based on any individual improvement she’s made to her home. Instead, it has been affected by rising residential land prices in her area.
Combining and separating lots
The Valuer-General may declare part of a lot as a separate parcel of land. In this case, a separate valuation will be issued for that part of the land.
Under certain circumstances, parcels of land must be amalgamated. This is possible when the land:
- has the same owner
- shares a common boundary (unless all the lots are used for farming)
- is used for the same purpose
- is in the same local government area
- has only 1 dwelling on the lots.
In these cases, you’ll receive 1 single valuation and 1 local government rates notice.
Contact your local business centre if you think your land parcels meet the requirements to be amalgamated.
Technical valuation guidelines
To make sure we’re transparent about how land is valued, we’ve developed technical valuation guidelines so professionals can keep pace with changes in the property market, and understand the link between legislation and practical application.
- Definitions of lot and parcel for statutory valuation (PDF, 400.4 KB) 400.4 KB)
- Agreement for lease in statutory land valuation (PDF, 262.9 KB) 262.9 KB)
- Statutory valuation of contaminated land (PDF, 405.3 KB) 405.3 KB)
- Statutory valuation of heritage properties (PDF, 387.9 KB) 387.9 KB)
- Statutory valuation of volumetric lots (PDF, 282.1 KB) 282.1 KB)
I don’t agree with my valuation
If you don’t think your valuation is right and have evidence, you can make an objection within 60 days of your notice’s issue date.
If we valued your land as non-rural when you think it should be rural land, you can make a rural land application.
If natural events have caused your land to be permanently damaged, and you meet the requirements under the Land Valuation Act 2010 you can apply for a change in land valuation within 6 months of the damage occurring.
For non-rural land, including rural-residential and some rural land, we determine the site value. Site value is different to unimproved value, as it takes into account the value of improvements that prepare the land for development, such as filling, clearing and drainage works.