People buying stands should not make the mistake of thinking that a large piece of land will always be more valuable than a smaller one. In fact the opposite is often true.
So says Homenet CEO Martin Schultheiss who notes: "Sometimes less is actually more, depending on where the stand is located, how accessible it is and how easy it is to build on.
"For example, a large stand located on a steep slope which is difficult to develop and maintain may well put potential buyers off, while smaller stands in the same neighbourhood that are level attract a lot of interest and sell for higher prices because they are much easier to develop."
Generally, he says, within a suburb where all the stands are level, those homes with the largest usable garden area will fetch the best prices. High-income buyers in particular will often pay a premium for such properties as they want to ensure their privacy and have space to raise a family.
Similarly, a large, level stand that ensures that other homes cannot encroach on a sea or mountain view, or which can be subdivided and sold off later, will add substantial value to most homes.
"But large grounds are by their very nature more difficult to maintain and can present a security risk, which is why there are many these days who prefer smaller stands. And busy professionals who constantly commute don't in any case have the time to maintain or enjoy a large garden."
One way or another though, stand size, shape and layout will always affect the re-sale value of a property so buyers should check out local demand and preferences before committing to any purchase, says Schultheiss.
ISSUED BY HOMENET