Port Marina Pty Ltd v Valuer General [2004] NSWLEC 338

Port Marina Pty Ltd v Valuer General [2004] NSWLEC 338

The comparable sales relied on by the Valuer General were not appropriate: the Hawkes Nest sale was too remote geographically and in time, was not adequately comparable, and lacked proper adjustment evidence, while the Port Macquarie industrial sales did not permit useful conclusions. In the absence of an appropriate comparable sales method, capitalisation of net rents was the appropriate method. Applying an annual rental of $118,156, a rental return of 12.5%, and a capitalisation rate of 7% produced a value of $210,992.90, rounded to $211,000; accordingly the appealed valuation of $337,000 was not supported and the appeal was upheld.

Jurisdiction
Australia
Judgment Date
23 April 2004
Procedural Posture
Appeal Against Valuation of Land / Ex Tempore Judgment
Outcome
Appeal upheld; valuation of $211,000 substituted for the valuation of $337,000.
Legal Topics
['valuation of Permissive Occupancy' 'highest and Best Use' 'comparable Sales Method' 'capitalisation of Net Rents Method']
['valuation of Land' 'land and Environment'] ['valuation of Permissive Occupancy' 'highest and Best Use' 'comparable Sales Method' 'capitalisation of Net Rents Method']

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Procedural Posture

Appeal Against Valuation of Land / Ex Tempore Judgment

Legal Issues

  1. 1 ['Whether the valuation of $337,000 for permissive occupancy 1979/4 as at 1 July 2002 should be upheld.' 'Whether comparable sales or capitalisation of net rents was the appropriate valuation method for the wet area used as a marina.' 'What rental return and capitalisation rate should be applied to determine the value of the wet area.']

Ratio Decidendi

The comparable sales relied on by the Valuer General were not appropriate: the Hawkes Nest sale was too remote geographically and in time, was not adequately comparable, and lacked proper adjustment evidence, while the Port Macquarie industrial sales did not permit useful conclusions. In the absence of an appropriate comparable sales method, capitalisation of net rents was the appropriate method. Applying an annual rental of $118,156, a rental return of 12.5%, and a capitalisation rate of 7% produced a value of $210,992.90, rounded to $211,000; accordingly the appealed valuation of $337,000 was not supported and the appeal was upheld.

Court Disposition

Appeal upheld; valuation of $211,000 substituted for the valuation of $337,000.

Orders

  • ['The appeal is upheld.' 'Pursuant to s 40(1)(b) the Valuation of Land Act 1916, a valuation of $211,000 is substituted for that of $337,000 for permissive occupancy 1979/4 in the Port Macquarie land district.']