Body Corporate for Ocean Plaza Apartments CTS 5879 v Valuer-General; Body Corporate for Points North CTS 4774 v Valuer-General (No 2)

In the proceedings before the Queensland Court of Appeal, Body Corporate for Ocean Plaza Apartments CTS 5879 and Body Corporate for Points North CTS 4774 appealed against the decisions of the Valuer-General concerning the valuation of their respective properties. Both appellants challenged the valuation of their properties located within a 'principal centre' of the Gold Coast, arguing that the issued valuations were erroneous. The valuation was based on the site value method, with the highest and best use of the properties identified as mixed-use residential and commercial. The primary dispute centred around the extent of the mixed-use potential and the appropriate method of valuation, particularly regarding the comparability of sales of improved sites.

The court had to address several legal issues, including the determination of the appropriate valuation method, the extent of the highest and best use of the properties, and the comparability of the sales used as a basis for the valuation. The appellants argued that the Valuer-General erred in applying the site value method and in assessing the extent of the mixed-use potential of the properties. They further contended that the comparable sales used were not sufficiently comparable to the subject properties. The Valuer-General defended the valuation approach and the assessment of the properties' highest and best use, asserting that the method applied and the comparable sales were appropriate.

The Court of Appeal found in favour of the appellants, concluding that the Valuer-General had erred in the valuation process. The court determined that the site value method was not the appropriate approach given the properties' mixed-use potential and that the comparable sales were not sufficiently comparable. As a result, the appeals were allowed, and new valuations were issued for each property. The Court of Appeal set the value of 66 Marine Parade, Coolangatta, as at 1 October 2021, at $47,040,500 and the value of 80 Marine Parade, Coolangatta, as at the same date, at $52,820,000.