ISPT PTY LTD and VALUER GENERAL [2007] WASAT 276

Jurisdiction:	STATE ADMINISTRATIVE TRIBUNAL	Citation No:	[2007] WASAT 276
Act:	VALUATION OF LAND ACT 1978 (WA)
Case No:	DR:310/2005	Heard:	27, 28 & 29 MARCH 2007
Coram:	JUSTICE M L BARKER (PRESIDENT) MR R J PRIEST (SENIOR SESSIONAL MEMBER)	Delivered:	19/10/07
No of pages:	28	Judgment Part:	1 of 1
Result:	Review application allowed Valuer General's assessment of unimproved value of subject land replaced with assessment of $25 000 000
Category:	B
PDF Version

Parties:	ISPT PTY LTD VALUER GENERAL
Catchwords:	Valuation of land Site in retail precinct of Perth central business district "Unimproved value" Comparable sales approach Challenge to methodology and assumptions of Valuer General "Reduced scope" approach Hypothetical redevelopment approach Piecemeal approach
Legislation:	City of Perth City Planning Scheme No 1 Valuation of Land Act 1978 (WA)
Case References:	15 Lorimer Street Pty Ltd v Secretary of the Department of Infrastructure (1997) 97 LGERA 239 AMP Life Ltd and Valuer General [2007] WASAT 257 Co-ordinated Resources Pty Ltd v ValuerGeneral (1983) 27 The Valuer 779 Weld Club Trustees and Valuer General [2007] WASAT 256
Orders	1. The review application is allowed.,2. The decisions of the Valuer General to issue assessments for the subject land as at 1 August for the years 2000, 2001 and 2002 in the sum of $37,000,000 are set aside and replaced with the assessments respectively of $25,000,000.

JURISDICTION : STATE ADMINISTRATIVE TRIBUNAL STREAM : DEVELOPMENT & RESOURCES ACT : VALUATION OF LAND ACT 1978 (WA) CITATION : ISPT PTY LTD and VALUER GENERAL [2007] WASAT 276 MEMBER : JUSTICE M L BARKER (PRESIDENT)

MR R J PRIEST (SENIOR SESSIONAL MEMBER)

HEARD : 27, 28 & 29 MARCH 2007 DELIVERED : 19 OCTOBER 2007 FILE NO/S : DR 310 of 2005 BETWEEN : ISPT PTY LTD

Applicant

AND

VALUER GENERAL

Respondent

Catchwords:

Valuation of land - Site in retail precinct of Perth central business district "Unimproved value" Comparable sales approach Challenge to methodology and assumptions of Valuer General "Reduced scope" approach Hypothetical redevelopment approach Piecemeal approach

Legislation:

City of Perth City Planning Scheme No 1

Valuation of Land Act 1978 (WA)

(Page 2)

Result:

Review application allowed

Valuer General's assessment of unimproved value of subject land replaced with assessment of $25,000,000

Category: B

Representation:

Counsel:

Applicant : Mr MN Solomon

Respondent : Ms FB Seaward and Ms CA Ide

Solicitors:

Applicant : Gadens Lawyers

Respondent : State Solicitor's Office

Case(s) referred to in decision(s):

15 Lorimer Street Pty Ltd v Secretary of the Department of Infrastructure (1997) 97 LGERA 239
AMP Life Ltd and Valuer General [2007] WASAT 257
Co-ordinated Resources Pty Ltd v ValuerGeneral (1983) 27 The Valuer 779
Weld Club Trustees and Valuer General [2007] WASAT 256

(Page 3)

REASONS FOR DECISION OF THE TRIBUNAL:

Summary of Tribunal's decision

1 The Valuer General assessed the unimproved land value of Myer Forrest Chase, Perth, at $37,000,000 on 1 August 2000, 1 August…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2007] WASAT 276
Decision Date: 19 OCTOBER 2007

CaseChat Overview and Summary

ISPT Pty Ltd challenged the Valuer General's assessment of the unimproved value of a parcel of land located in the retail precinct of the Perth central business district. The dispute arose from the assessment of the land's value for the years 2000, 2001, and 2002, with the Valuer General setting the assessment at $37,000,000 for each year. The case was heard by the Supreme Court of Western Australia.

The primary legal issue was the appropriate methodology for determining the unimproved value of the land. The court needed to determine whether the Valuer General's assessment correctly applied the relevant valuation principles, specifically the comparable sales approach. ISPT argued that the Valuer General's assessment was flawed due to incorrect assumptions and an inappropriate valuation approach, advocating for a reduced scope or hypothetical redevelopment approach. The court had to assess the validity of these arguments and decide on the appropriate valuation method.

The court found that the Valuer General's assessment did not correctly apply the comparable sales approach. The Valuer General had made certain assumptions that were not supported by evidence and did not adequately consider the impact of the land being part of a retail precinct. The court held that the Valuer General should have adopted a reduced scope approach, considering the land's potential for development in the context of the retail precinct. The court also found that the hypothetical redevelopment approach proposed by ISPT was more appropriate given the circumstances. The court set aside the Valuer General's assessments and substituted them with assessments of $25,000,000 for each of the years 2000, 2001, and 2002.

The court allowed the review application and ordered that the Valuer General's decisions to issue assessments for the subject land as at 1 August for the years 2000, 2001, and 2002 in the sum of $37,000,000 be set aside and replaced with assessments of $25,000,000 for each of those years.

Orders

Orders of the court

1. The review application is allowed. 2. The decisions of the Valuer General to issue assessments for the subject land as at 1 August for the years 2000, 2001 and 2002 in the sum of $37,000,000 are set aside and replaced with the assessments respectively of $25,000,000.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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