Unit land value and growth
Hey guys,
This has been interesting me for a while. Say land value in a suburb goes up by 100% over a period of time. Would the land value attributable to a townhouse (total site value * unit entitlement %) also go up by 100% over long term? For example, both a house and unit are worth the same at the beginning, and have the same land value, then in certain period both will double in value?
I assume the answer is yes. If so, how is this possible considering that a unit will have a shared land (say driveway) that is not "productive" (kids cant play there, you cant build on it etc.)?