VALUATION OF…
Vacant Land
Undeveloped and development-ready land, valued on zoning, extent, and highest-and-best-use potential.
Content status: Methodology and evidence log — Sources, Caselaw and Market Information are added incrementally.
A note on rate/ha and rate/m² figures: vacant and development land is valued primarily on zoning and permitted development rights, not on raw size or location alone. Two parcels of identical extent in the same area can differ by an order of magnitude in value depending on what may be built on them. Each evidence log entry below states whether zoning is confirmed or unconfirmed for that sale — rates from entries with different or unconfirmed zoning status should not be treated as directly comparable.
Methodology
Vacant land is valued primarily using the Direct Comparison Method, applying a rate per square metre or per hectare derived from sales of comparable land, adjusted for zoning, services, topography and location. Where the land has clear development potential, the Residual Method — deducting development costs and developer’s profit from the gross development value — is used as the primary method or as a cross-check.
The Big Five framework applies differently to vacant land, as there is no existing income stream: rather than identifying Income Generating Units and comparing contract to market rental, the valuer assesses the land’s highest and best use, the rights attaching to it (zoning, density, servitudes) and the availability of services, as these are the principal drivers of value in place of a rental analysis.
Zoning rights and services availability are the dominant value drivers for vacant land. Where development potential exists, a Residual Method cross-check against the Direct Comparison valuation should be undertaken to confirm consistency between the two approaches.
Caselaw
Case law, regulatory rulings and expert-determination disputes relevant to valuing this asset class. Each entry cites its source and summarises the practice implication for valuers — this is not investment, financial, or legal advice.
The Evidence Log is for VDH Members
The Evidence Log for Vacant Land — sourced sales, disposals and rentals with Valuer’s Lens commentary — is included in VDH Membership: from R125/month for SACPVP candidates and students, R399/month standard. All prices include VAT.
The methodology and case law on this page remain free to read.