Does the market value land as we would?
We continue to hear of concerns from clients about the TIME and COST to obtain resource and building consent for development. As valuers we can’t assist much in this aspect of the process. However, we can and have seen the effect delays have on the underlying value of land.
Land that is close to or ready for development has a stronger case for achieving close to or full retail value. In comparison land that has uncertainty of consent, development timing or requires infrastructural or subdivision costs in order to achieve retail value will trade at a wholesale price. Just like other markets.
The dilution in value whilst applying for resource consent can be significant. However the improvement in value once consent is achieved can also be significant. AIM closely monitors LAND market activity. We are seeing a very pragmatic approach to land acquisition and development with status of any planning application an important consideration.