Golding v Chief Executive, Department of Natural Resources

[1999] QLC 126

[1999] QLC 126

 

LAND COURT,

BRISBANE

8 December 1999

Re:     Determination of Unimproved Value –

City of Ipswich.
  (Ref. AV99-417).

SW and CD Golding

v.

Chief Executive, Department of Natural Resources

D E C I S I O N

Falling for determination is the unimproved value of a "Park Residential" zoned site situated at 60 Billagall Drive, Karana Downs (corner Tanderra Way).  The land is described as Lot 20 on RP 140652, Parish of Kholo, and contains an area of 5407 square metres.  The respondent Chief Executive has determined the unimproved value of the land in the sum of $57,000 as at a relevant date of 1 October 1998.  The appellants contend within the notice of appeal for an unimproved value of $45,000.

Evidence in support of the grounds of appeal was furnished by Mrs Crystal Dawn Golding who informed the Court that she and her husband purchased the subject land as a vacant block on 21 December 1998 for $37,500 from a retired couple who had the property on the market for a period of time during which the asking price was being reduced to a level at which they decided to purchase.  Mrs Golding considers that she bought the land at an attractive price.  The unimproved value of $45,000 nominated by the appellants in the notice of appeal is supported by a valuation of the land taken by the valuation firm Herriots (Ipswich) Pty Ltd on 23 March 1999.  A copy of the valuation has been produced in evidence.  It is under the hand of Registered Valuer Brendan James Coonan.  As explained to Mrs Golding during the hearing, the Court is unable to place reliance upon this valuation document since Mr Coonan was not called in evidence to explain the basis for his valuation.
           Mrs Golding told the Court that the appellants have taken the opportunity to examine fairly recent sales of vacant land in Karana Downs which, she says, supports a valuation of $45,000 for the subject land.
           Mrs Golding describes the subject land as being located directly alongside the only main road into the suburb of Karana Downs from Brisbane's western districts, and the nature of the land as having a minor grade of slope from the road in a limited area for a driveway entrance, with all other points to the road being at a steep grade.  She says the land will have to be excavated for a building pad prior to development.  It is split by two gullies running north/south, and has limited building sites due to steepness of terrain.  Mrs Golding describes the land as being a lot without views.  She says one could perhaps catch glimpses of the nearby Brisbane River, but an original house design to maximum height permitted was abandoned due to river views being only available from a small part of the projected floor area of the dwelling house.
           On the sales researched by the appellants, Mrs Golding believes a site in Mt Crosby Road is the most comparable with the subject land.  It is Lot 5 on RP 171994, Parish of Kholo, containing an area of 5,000 square metres which sold on 22.12.1998 for $60,000.  This site is described by her as having a minor grade of slope from the road in a limited area allowing driveway entrance.  It is steeply sloping land with 100 degree views of the hills.  Mrs Golding recognises that Mt Crosby Road is also a busy thoroughfare but the land is accessed from a type of service road.  This land is valued by the respondent Chief Executive at $47,500 which, Mrs Golding says, does not support a valuation of $57,000 for the subject land.

Two other sales referred to by Mrs Golding are 25 Derribong Close and 4 Burrows Road.  Details of these sales are contained within her statement (Exhibit 1).

The valuation under appeal was made by Departmental Registered Valuer Brian Joseph McDonald.  Mr McDonald told us that good access is available to the road from a point in Billagall Drive towards the eastern side boundary.  He describes the subject land as being well elevated with potential views of the Brisbane River.  The preferred building site is regarded by Mr McDonald to be in the north-western corner.  The land falls sharply away from this point to gullies on the southern and eastern side.  Mr McDonald describes the land as being well-drained although suffering some surface runoff from both roads.

Mr McDonald is aware that the subject land was purchased by the appellants on 21 November 1998 for $37,500.  He too considers this price to be below the market level for sites at Karana Downs.
           Mr McDonald relies upon the analyses of three "Park Residential" zoned sites within Karana Downs as a basis for his valuation.  Details are:

Sale 1:  Lot 2 on RP140652 – 7373m² - Naghrodzki and Bateson to Bernitt and Harlow on 09.06.1998 for $77,000 – analysed unimproved value $75,500 – applied unimproved value $63,000 – situation corner Billagall Drive and Tanderra Way.

Mr McDonald describes this sale property as having an elevated homesite which has been developed with access from Billagall Drive.  The land falls away sharply from this site to the south-west corner and to the north.  Mr McDonald says this sale land has superior views of the river in comparison with the subject land, but in all other ways it is comparable.  He regards the sale land to be superior to the subject land.  It is to be noted that Mr McDonald's Sale 1 land is situated directly across Billagall Drive from the subject land.

Sale 2:  Lot 35 on RP 140654 – 1.594ha – Welford to Powell and Mclean on 29.07.1998 for $70,000 – analysed unimproved value $67,500 – applied unimproved value $61,000 – situation Derribong Close.

Mr McDonald describes this sale property as being of medium elevation falling away gradually from the road to a gully along the northern boundary at the eastern end of the lot.  Along the southern boundary the land rises gently before falling sharply to the western boundary.

Mr McDonald points out that this sale property is much larger and although some of the area is restricted by a transmission easement, he considers it to be again superior to the subject land.  It is superior in its location off Tanderra Way but has the same problems with access to the locality via that road.  It is inferior due to the location of the power lines and without having the possibilities of river views.

Sale 3:  Lot 755 on RP 202787 – 1235m² - Elcoate to Wilds on 26.08.1998 for $67,500 – analysed unimproved value $65,200 – applied unimproved value $58,000 – situation Pinehurst Court.

Mr McDonald describes this sale property as being of medium to low elevation falling away steadily from its road frontage to the rear.  It is much smaller than is the subject property but is still considered to be a fair-sized building block.  Although it lacks elevation, its outlook over a golf course to the rear is considered to be comparable to the subject land's potential views.  Otherwise Mr McDonald considers that the sale land is comparable with the subject land.

Mr McDonald told us in evidence that the general run of "Park Residential" sites within the subject area have been selling between $60,000 and $70,000.  It is for this reason that he believes the sale of the subject land is an out-of-line sale. 

There is disagreement between Mrs Golding on one hand and Mr McDonald on the other about their ideas of the potential views available from the subject land, particularly those of the nearby Brisbane River.  Mr McDonald says that from standing on the corner of the subject land he could obtain glimpses of the river.  But I am convinced by the evidence of Mrs Golding about the abandoned house design plan that the potential for river views from the subject land is not great.  I am prepared to give her the benefit of any doubt I have in favour of a finding that the subject site does not have potential for extensive river views.  On this basis I find that the valuation of the subject land is somewhat excessive.

In these circumstances I have decided to allow the appeal, to set aside the respondent Chief Executive's valuation and to determine the unimproved value of Lot 20 on RP 140652, Parish of Kholo, as at the relevant date of 1 October 1998 in the sum of Fifty-two thousand dollars ($52,000).

(CH CARTER)

Member of the Land Court