I have heard of two blocks of land about to be subdivided into 3 in Wavell heights, QLD. How would you go about putting a value on a block of land 500m2 in size, with no comparable sales to go by? Looking at previous sales around the area, it is difficult to judge based on various land sizes and sizes/conditions of the houses on them. TIA, TC.
Look at best comparables you have, which in this case is less than ideal. Then factor in 5-10% less. Talk to agents to get an idea too.
Thanks Leo. I'll keep digging. So does that mean you consider the build to represent only 5-10% of the value of a purchase with the land at 90%? Am I interpreting that correctly?
I'm not really sure what you're saying but my suggestion of the 5-10% reduction was to be conservative with the land value because you don't have direct comparables. If you want to build on the land then you need to do a feasibility where the land + build cost + other costs are taken into account, then determine the end value sale for the product to see what kind of profit margin you have on the project.
Feasibility will depend largely on what this land goes for. I'll try and work on more specifics and try and use the above info to get a more accurate gauge on the true value of the block. Thanks all for your input.
Aspect of the land is also very important. You can have 2, 500sqm lots on the same street with very different values.
TomC, Depending on the location, aspect and dimensions of the block, it would be relatively easy to come up with a bracket value of the site as there is a reasonable amount of sale data to give you some relativity on values around the area. You would need to make some assumptions depending on variance in the above parameters and how they will ultimately impact the value of the land.
