The influence of valuation practices upon the price of vacant inner city land

C. David Adams, A. Baum, Bryan Duncan MacGregor

    Research output: Contribution to journalArticle

    19 Citations (Scopus)

    Abstract

    Many earlier studies have provided useful statistical information on the extent of vacant land in British towns and cities, but few have attempted to relate land vacancy to the wider development process. This paper presents recent evidence from Inner Manchester which suggests that valuation practices operate to prevent inner city land prices from falling even in areas of apparent over-supply. This creates a blockage in the development process. It is shown that asking prices for vacant sites currently on the market are often substantially in excess of the level of prices achieved in recent transactions. As the great waves of compulsory acquisition in Manchester are now over, the statutory rules of valuation do not account for this difference, although historic levels of value have been supported by recent local authority acquisitions by agreement. It is evident that the comparative method of valuation is unable to cope with few transactions or a declining economy, both of which characterize the inner city land market. As a result, inner city land prices appear to be revised downwards only slowly and reluctantly in response to lack of demand or excess supply.
    Original languageEnglish
    Pages (from-to)157-173
    JournalJournal of Property Research
    Volume2
    Issue number3
    DOIs
    Publication statusPublished - 1985

      Fingerprint

    Keywords

    • development process
    • land market
    • inner cities
    • vacant land
    • valuation

    Cite this