Land Use Planning and Development Control
Planning and development control determine what may lawfully be done with land, and therefore underpin value. Candidates must understand zoning and land-use classification, permitted (as-of-right) uses, conditional or consent uses, and the distinction between existing lawful use and proposed use. Development control covers subdivision, building consent, and conditions attached to approvals.
Key concepts include the difference between planning permission and building consent (one governs use, the other governs construction), the concept of highest and best use, and the effect of planning constraints on development potential. The valuer must also understand non-conforming uses, lapsed consents, and the difference between an approved scheme and an implemented one.
Traps: assuming a permitted use is the same as an existing use; valuing land on the basis of a development that has no consent; confusing planning approval with building compliance; and ignoring conditions that limit density, height, or coverage. Another trap is treating a lapsed or unimplemented consent as though it were built.
Rule of thumb: highest and best use must be legally permissible, physically possible, financially feasible, and maximally productive - in that order.
Worked example: A site zoned for low-density housing is valued. A buyer's scheme for apartments would require a consent not yet obtained. The valuer may note the potential but must not value the site as though the apartments were approved; the opinion rests on the lawful existing use unless consent is reasonably probable and evidenced.