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Yes, but my point is that if you have two identical houses in every single way, clones of each other. Put them side by side, except one is on a bigger block of land, then the one on the bigger block of land will always be of higher value. People will pay more for more land, not pay more...

No way that can be correct. There's no way that people will pay for a SMALLER block than a bigger block. Its like saying people will pay MORE for half a mars bar! Probably a difference between actual sales and valuations. If you have two identical houses in the same area, and all else being...

Exactly. And if you're buying in an 'in demand' suburb, remember, that suburb is, and will only ever be a set size. So the more land you have, the more of thing in demand you have.