What is meant by ‘unimproved’ value?
The “unimproved value” of a site is simply its worth discounting any improvements – the land value itself. It is the current market price less the current value of all improvements. As happens now, it is the market which determines the value of a site and anything on it. The desirability of a site for residential, commercial or industrial development, for the establishment of a mine, or for exploitation as a fishing-ground, is what creates its value. A derelict site fronting a shopping mall will be worth by and large what its neighbouring sites are worth. This fact is demonstrated when a vacant site goes to public auction. The amount of the successful bid determines the value of the site. The unimproved value of farmland in a marginal rainfall area is likewise determined by public bidding. Any work carried out on a site, be it a multi-story exclusive store or a wheat crop, are improvements. The full value of these improvements should rightfully belong to whoever produced them. Our pres
