News from nowhere

Ian Mulheirn writes

The price of a property is overwhelmingly determined by the value of the land it sits on, which makes it inherently positional, and not something you can cut to zero. For example, you can’t reduce the value of the land in the City to zero (or even make a material dent in it) by liberalising planning in Surrey. The reason is that the value of the land is determined by the discounted stream of rent you can get from it. This is unrelated to the cost of building. If you build somewhere where nobody wants to live, the discounted stream of rent, and hence the property value, will be zero.

My emphasis. Any offers on that house?