Our machine learning Land Value Algorithm has taken years to perfect. It determines a unique value for the selected property based on its size, shape, and the location of that property in relation to other attributes:
A house, or any other built form, will depreciate in value over time as the building degrades, lifestyles change, and society expectations evolve. Independently, land increases in value where population growth places pressure on space.
We understand and evaluate the economics of land and quantify the value of location
There are many reasons why the underlying land value of a property may differ to neighbouring properties, including:
While a landowner cannot control the supply and demand aspect of land value, there are other avenues for increasing their land value. The biggest opportunity is through subdivision.
If a property can be subdivided under council zoning provisions, a successful subdivision can significantly increase the resultant land value, depending on the location.
A successful subdivision of a typical quarter-acre (or 750m2) suburban block can, on average, double the total land value.
Property developers are well versed in the process of creating land value uplift through subdivision. The building process provides some margin, but often it’s the subdivision itself that provides the most value.