CoreLogic’s Unimproved Land Value Index is a measure of the change in underlying land values for detached housing for various geographic demarcations. Unimproved land value (also referred to as Unimproved Capital Value) is the estimated value of the underlying land which a property is built upon, excluding any improvements on the land such as the dwelling itself and other structures (e.g., swimming pools, carports, etc.). This is distinct from the market value of the property which accounts for both the improvements as well as the unimproved land.
Leveraging the same hedonic methodology as the Home Value Index, CoreLogic’s Unimproved Land Value Index is derived from a statistical analysis of observed market transactions of residential houses. The model is optimised to control for the contribution of various attributes to changes in observed market sales prices by factoring only the land area and location attributes to the hedonic model (for further details on the model see ‘Methodology’ tab).
Unimproved Land Values are typically used by local councils and state governments to assess various rates and taxes.
While each jurisdiction will assess the Unimproved Land Value of individual properties differently, CoreLogic’s Unimproved Land Value Index serves as an additional point of reference for real estate industry observers to monitor how the overall market is changing over time. As CoreLogic’s indices are a statistical assessment of broader market activity, these indices should not be used as a substitute to formal valuations conducted by a registered valuer, and are best used as a supplementary indicator.
As commissioned by the Blacktown City Council, CoreLogic has generated the following Unimproved Land Value Index and related metrics for the North West Growth Area in additional to a number of similar geographies for reference purposes.