Land Value

Land value is the council's estimate of what the bare land would be worth if it had no buildings or improvements on it. It's one of the three components of the council's rating valuation, alongside capital value (total property value) and improvement value (value of buildings and improvements).

Land value is influenced by factors including location, size, shape, contour, zoning, and access to services. A flat, well-located section in a desirable suburb will have a higher land value than a steep, remote section of the same size.

Some councils use land value rather than capital value as the basis for calculating rates. This can benefit owners of well-improved properties (since they're rated only on the land, not the buildings) but disadvantages owners of unimproved or lightly improved land. Understanding which valuation base your council uses helps you anticipate your rates.

Land value is particularly important if you're buying a property for its development potential. A high land value relative to capital value suggests the existing buildings add little value and the property's worth is in the land — which may make it a candidate for subdivision or redevelopment.

Conversely, if improvement value is high relative to land value, the buildings are contributing significantly to the property's value. This is typical of well-maintained or recently renovated homes.

Land value is shown alongside capital value and improvement value on the council's property records, the QV website (qv.co.nz), and the LIM report. Compare land values across similar properties in the area to understand whether the land component is reasonable.