There are many variables at play, and this is a task that requires a lot of research and logical thought. You will need expert advice from a suitably experienced property valuer.
Identifying who the potential purchaser/buyers are will significantly narrow down the property's value. Remember, a sliver of land is only worth the amount of money a person is willing to pay; an informed person will often pay more or less. It all depends. Once all the variables such as size, zoning, and the players are identified, we can establish parametres and define its potential and value.
Many people believe the market for a piece of common land or common property is minimal. Who would want to buy a sliver of land, or a piece of council lane-way, gardener's toilet or storage cage? The purchase of an unassuming piece of common land can add value to the purchaser but may subsequently hurt the remaining Lot owners end game. This has implications, one of which is the distribution of the unrealised potential of the whole property, which affects the entitlement and liability of Lot owners within a strata complex or stratum.
There is a myriad of variables and implications at hand when somebody is trying to buy or sell land, let alone a piece of seemingly "useless" land. If a piece of land is considered useless, then you won't be reading this. Assuming it is free of contamination, fully compliant within its immediate surrounds, it can be sold at a price, but for how much?
When tasked to value a piece of common land for market value purposes, pre-sale or pre-purchase, a competent, independent property valuer should, at the very least, must begin by identifying the following:
Use or purpose of the valuation advice
Size of the area with height considerations
Location
Current zoning
Who the potential purchasers/buyers are
One must consider the use or what purpose the valuation is required. If everybody agrees to the terms, then it is a relatively painless process. However, sometimes, the report asks explicitly for the property valuation report to be presentable to the courts or VCAT, depending on the quantum.
The above points are all interlinked. There will be many transacted accessory units, pieces of common land floating about, make sure to compare oranges with oranges. Pay attention to the land's utility and its potential for its overall highest and best use. If the 'sliver' of land has subdivision potential or it can increase a property's building footprint, it becomes valuable real estate.
Another good example is the old gardener's toilet. Who would want that you might ask? Location is key here. A workman's toilet at basement level is less desirable than one attached to someone's garage or unit located at ground level. What about an external laundry? These things are sizable and usually larger than your average storage cages. Imagine all the useless junk you can store in there? All jokes aside and increase in the land area equals an increase in land value.
If you require a property valuation to determine a piece of common land or common property, let us know. We are experienced and will provide you with the most informed valuation advice, aided by the latest sales and data analysis in addition to the most appropriate valuation methodologies.