Valuations on building contracts

I'm curious to know if when banks do a valuation on a new construction, are they valuing the finished property or are they assessing the "value" of the price that the builder has provided to you?

I have land worth about $300k and I'll be building for about $310k so will the bank lend me based on LVR on $610k or if the finished property will be worth $700k, will they lend based on the LVR on $700k?

Recent sales all reflect the finished project being worth $700k.

 

They are valuing the likely sale price when the build is finished, and if you default.

the bank bases their LVR on the valuation, but they do keep an eye on the build cost. So if the valuer say the build value is more than the price, the bank will go for the lower figure.
As @Rolf Latham said if the land value is higher then the bank will rely on this higher amount for their calculations, as long as you already the owner.

 

Usually will value land at current market value (if contract period is long enough) & build @ cost. Often build values > cost, but lenders will often cap lending at the cost.