Land Index – Major Land Value Growth

Knight Frank Residential Development Land Index, Q2 2010 results

1. The price of greenfield and brownfield residential development land rose by 6.1% and 3.7% in the second quarter of 2010

2. This most recent price growth means that prices for both greenfield and brownfield land have risen by 20% over the 12 months to June this year.

3. Demand from applications for land purchases has risen by 10% over the second quarter, outpacing supply which rose in volume by only 3% over the same period

4. “Our message to land investors is that now is a good time to buy however we would caution against too much optimism within the base appraisal as the equity and debt markets will not be around to support aggressive assumptions.”