ABSTRACT

Back in Chapter 7, we worked out the price a housing developer would pay for land assuming that the price of the finished structure (which unavoidably includes the price of land) is determined by what the ‘top’ buyer would in turn be prepared to pay. This assumption reflected another, made in Chapter 1, namely that demand for land is (mostly) derived from either consumers’ demand for the product of land (in case of agricultural, mineral, or ‘amenity’-related land) or from users’ demand for advantages afforded them by the land’s location.