Many NSW property owners receive a land value each year and assume it is what their property is worth. It is not. A statutory land value and an independent market valuation answer different questions.
What a statutory land value is
In New South Wales, land values are determined by the NSW Valuer General. They are used, among other things, by Revenue NSW when calculating land tax and by councils when setting rates. A land value is generally an assessment of the land only, as if unimproved. It does not include the value of a home, building or other improvements on the land.
What a market valuation is
An independent market valuation is a professional assessment of the market value of a specific property as at a specified date, prepared for an agreed purpose. Depending on the instruction, it takes into account the land and its improvements, the property’s condition and attributes, and relevant sales and market evidence. It is documented in a written report that sets out the basis of value, the methodology and any assumptions.
Why the two figures differ
- What is valued. Land only, compared with land and improvements.
- The date. Land values are made at a set valuing date; a market valuation is made at the date you need.
- The method. Land values are typically determined across many properties at once; a market valuation involves an inspection and analysis of the individual property.
- The purpose. One supports taxation and rating; the other supports a specific decision such as lending, a purchase, a settlement or a tax calculation.
If you disagree with a land value
The NSW Valuer General provides information on how land values are determined and how to seek a review. See the official links in our resources centre.
Discuss your valuation requirements
Speak with our team about your property, the purpose of the valuation and the date at which value is required.
Request a Valuation