Lequant Computer Services (Qld) Pty Ltd v Chief Executive, Department of Natural Resources

In the matter of Lequant Computer Services (Qld) Pty Ltd v Chief Executive, Department of Natural Resources, the Land Court was presented with an appeal against an unimproved valuation of a specific piece of land in Goondiwindi. The appeal was brought by the appellant company against the assessment of the unimproved value of the land by the Department of Natural Resources, which had assessed the value at $140,000 as at 1 January 1996. The land in question, located at the corner of McLean and Callandoon Streets, is zoned “Central Business” and is developed and used as a motel. The appellant company argued for a valuation of $121,380 or $60 per square metre, contending that there was an alleged lack of proper relativity between the valuation of the subject land and valuations of other properties, particularly other motel properties situated in Marshall Street.

The primary issue for the court to decide was whether the valuation of the subject land was appropriately related to the valuations of other properties, particularly other motel properties in the area. The appellant argued that the Department's valuation did not properly account for the shift in user demand for motel and commercial/retail properties into Marshall Street, which they claimed had resulted from the change in the main thoroughfare into the town centre. The court needed to assess whether the Department's valuation of $140,000 was appropriate, considering the appellant's arguments regarding the relativity of the valuations.

The court, after considering the evidence presented by both parties, found that the Department's valuation was not sufficiently justified by the relativity argument. While the Department's valuer acknowledged the importance of the central business zoning, access, and fringe town centre location of the land, the court was persuaded that the relativity argument presented by the appellant was valid. The court noted that the available sales evidence made comparison with fringe location commercial property a difficult exercise and that the valuations of the motel sites near Pratten Street appeared to be overly conservative. The court concluded that some adjustment to the valuation of the subject land was appropriate and decided that a valuation based on $65 per square metre would be more equitable, providing a benefit of any doubt to the appellant. Accordingly, the appeal was allowed, the valuation of the chief executive set aside, and the unimproved value of the subject land determined in the amount of $131,500.