Graham Trilby Pty Ltd –v – Valuer Genera [2009] NSWLEC 1087

Graham Trilby Pty Ltd –v – Valuer Genera [2009] NSWLEC 1087

Given the absence of directly comparable sales evidence and the lack of a transparent basis for major adjustments in the direct comparison approach, the hypothetical development method should be preferred in valuing the subject residential land. A conservative allowance for profit and risk, a lot yield of 45, and a gross realization of $19.25 million were appropriate based on the evidence, resulting in a land value of $10,839,880 for the property as at 1 July 2006.

Jurisdiction
Australia
Judgment Date
24 March 2009
Procedural Posture
Valuation Appeal / Final Judgment After Hearing
Outcome
Appeal upheld
Legal Topics
['land Valuation' 'hypothetical Development Method' 'comparable Sales' 'allowance for Profit and Risk']
['valuation Law' 'planning Law'] ['land Valuation' 'hypothetical Development Method' 'comparable Sales' 'allowance for Profit and Risk']

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Procedural Posture

Valuation Appeal / Final Judgment After Hearing

Legal Issues

  1. 1 ['Whether the land value assessed by the Valuer General as at 1 July 2006 was correct' 'Appropriate methodology for assessing land value in absence of directly comparable sales' 'Appropriate allowance for profit and risk in hypothetical development method']

Ratio Decidendi

Given the absence of directly comparable sales evidence and the lack of a transparent basis for major adjustments in the direct comparison approach, the hypothetical development method should be preferred in valuing the subject residential land. A conservative allowance for profit and risk, a lot yield of 45, and a gross realization of $19.25 million were appropriate based on the evidence, resulting in a land value of $10,839,880 for the property as at 1 July 2006.

Court Disposition

Appeal upheld

Orders

  • ['The appeal is upheld.' 'The land value as at the base date of 1st July 2006 for the property at Lot 161, Cattai Creek Drive, Kellyville is $10,839,880.' 'The allowance under section 14(L) is $702,197.' 'No order is made as to costs.' 'The exhibits be retained.']