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

    valuation
    transaction
    land market
    supply
    market
    town
    acquisition
    land
    price
    inner city
    economy
    lack
    demand
    evidence
    Values

    Keywords

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

    Cite this

    The influence of valuation practices upon the price of vacant inner city land. / Adams, C. David; Baum, A.; MacGregor, Bryan Duncan.

    In: Journal of Property Research, Vol. 2, No. 3, 1985, p. 157-173.

    Research output: Contribution to journalArticle

    @article{b14bd7698d9346e68407992d92da1583,
    title = "The influence of valuation practices upon the price of vacant inner city land",
    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.",
    keywords = "development process, land market, inner cities, vacant land, valuation",
    author = "Adams, {C. David} and A. Baum and MacGregor, {Bryan Duncan}",
    year = "1985",
    doi = "10.1080/02640828508723891",
    language = "English",
    volume = "2",
    pages = "157--173",
    journal = "Journal of Property Research",
    issn = "0959-9916",
    publisher = "Routledge",
    number = "3",

    }

    TY - JOUR

    T1 - The influence of valuation practices upon the price of vacant inner city land

    AU - Adams, C. David

    AU - Baum, A.

    AU - MacGregor, Bryan Duncan

    PY - 1985

    Y1 - 1985

    N2 - 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.

    AB - 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.

    KW - development process

    KW - land market

    KW - inner cities

    KW - vacant land

    KW - valuation

    U2 - 10.1080/02640828508723891

    DO - 10.1080/02640828508723891

    M3 - Article

    VL - 2

    SP - 157

    EP - 173

    JO - Journal of Property Research

    JF - Journal of Property Research

    SN - 0959-9916

    IS - 3

    ER -