Naburn Pty Ltd v Valuer General [2014] NSWLEC 1244

Naburn Pty Ltd v Valuer General [2014] NSWLEC 1244

A proper comparable sales analysis for the valuation of 41 Ocean Road, Palm Beach under s 6A of the Valuation of Land Act 1916 must be confined to a narrowly defined market segment comprising only the premium cluster of properties at the southern end of Ocean Road (39, 40, 41 Ocean Road and 12 Florida Road), with other sales excluded for lack of comparability. The extensive excavation and retaining wall works on 40 Ocean Road, while costly, did not add positive value for comparative analysis, and any adjustment should reflect only additional development potential (e.g., extra floor level) rather than cost per se. The statutory land values determined by the Valuer General for base dates 1...

Jurisdiction
Australia
Judgment Date
27 November 2014
Procedural Posture
Statutory Appeal (land Valuation) / Principal Judgment (after Hearing of Evidence and Submissions, Final Orders Made)
Outcome
Appeals dismissed; statutory land valuations confirmed.
Legal Topics
['comparable Sales' 'land Improvements' 'statutory Valuation' 'burden of Proof' 'market Segmentation in Property Valuation']
['valuation of Land' 'administrative Law'] ['comparable Sales' 'land Improvements' 'statutory Valuation' 'burden of Proof' 'market Segmentation in Property Valuation']

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Procedural Posture

Statutory Appeal (land Valuation) / Principal Judgment (after Hearing of Evidence and Submissions, Final Orders Made)

Legal Issues

  1. 1 ['Whether the statutory land valuations for 41 Ocean Road, Palm Beach determined by the Valuer General for 1 July 2011 and 1 July 2012 were excessive or appropriate under the Valuation of Land Act 1916.' 'Appropriate approach to comparable sales analysis including what constitutes a comparable sale for market analysis under s 6A of the Valuation of Land Act 1916.' 'Whether and to what extent land improvements (particularly excavation and retaining works) should add to the value of a comparable sale for valuation purposes.' 'Method of analysis for deriving land value (rate per square metre or per allotment methodologies)']

Ratio Decidendi

A proper comparable sales analysis for the valuation of 41 Ocean Road, Palm Beach under s 6A of the Valuation of Land Act 1916 must be confined to a narrowly defined market segment comprising only the premium cluster of properties at the southern end of Ocean Road (39, 40, 41 Ocean Road and 12 Florida Road), with other sales excluded for lack of comparability. The extensive excavation and retaining wall works on 40 Ocean Road, while costly, did not add positive value for comparative analysis, and any adjustment should reflect only additional development potential (e.g., extra floor level) rather than cost per se. The statutory land values determined by the Valuer General for base dates 1...

Court Disposition

Appeals dismissed; statutory land valuations confirmed.

Orders

  • ['In Matter 30520 of 2013: (1) The appeal is dismissed; (2) Pursuant to s 40(1)(a) of the Valuation of Land Act 1916, the statutory valuation for 1 July 2011 of $6,960,000 for 41 Ocean Road Palm Beach is confirmed; (3) The exhibits are returned.' 'In Matter 30340 of 2013: (1) The appeal is dismissed; (2) Pursuant to...