TL Stack v Chief Executive, Department of Natural Resources

[1998] QLC 134

LAND COURT

BRISBANE

12 NOVEMBER 1998

Re:	Determination of Unimproved Value -
City of Townsville
(AV97-399)

TL Stack
v.

Chief Executive, Department of Natural Resources

D E C I S I O N

Mrs Tracey Lee Stack has appealed against the determination by the respondent Chief Executive of an unimproved value of $50,000 for her land which is more particularly described as Lot 1 on RP 709950, Parish of Coonambelah,

containing an area of 608 m. This land is situated at 34 Davidson Street (Cnr Morey

Street), South Townsville. It is zoned "Special Development" under the provisions of the Townsville City Council Town Planning Scheme. The relevant date for the determination of the unimproved value is 1 October 1996, and the appellant contends within the Notice of Appeal for an unimproved value of $40,000. The respondent Chief Executive has made the valuation under the provisions of s.17 of the Valuation of Land Act 1944 as land being used exclusively for single dwelling purposes.

Practising Registered Valuer Craig James Stack, who is the husband of the appellant, had the conduct of the case for his wife and also furnished evidence in the matter. It is Mr Stack who values the land at $40,000. He considers the current use of the property for single residential purposes to be the highest and best use of the land, and he points out that surrounding properties are mainly used for single dwelling purposes and contain a variety of dwellings presented to average standards. Opposite the subject property is a major transport depot, while the rail link for the Townsville Wharf facility (Perkins Street) is located 60 metres east of the subject land. There is also a printing works, a bus maintenance depot and a fire station immediately west of the subject property.

Mr Stack describes the subject land as being a level, regular shaped corner parcel with a good building contour, and says that some build-up of stormwater to a depth of 20 centimetres can occur during heavy wet periods. There is a stormwater drain located in front of the property at the junction of Morey and Davidson Streets.

Mr Stack told us that the market for all forms of residential property, with the exception of the prestige residential sector, was depressed during 1995 and 1996, and he produced a vacant sales activity graph for the Cities of Townsville and Thuringowa by way of illustration.

Mr Stack says that there was a temporary improvement in the market activity in the subject area in late 1995 as works associated with the Townsville South Revitalisation Program commenced. This is a federally funded project, where $18,000,000 was spent on planning design and implementation of street-scape works, traffic management initiatives and areas of public amenity. The premise of these works was to rejuvenate South Townsville as an "inner city village", but Mr Stack says the program has had only a temporary impact upon the real estate market.

Mr Stack submits that there are few vacant land sales in South Townsville because of the built-up nature of the suburb. The sales which do occur in the area are likely to be of dual occupancy lots. But Mr Stack points out that immediately south of the suburb of South Townsville is the suburb of Railway Estate where, during 1995 and 1996, two new residential developments were presented to the market. One was by a local developer in 1994, and presented to market in 1995. There are 20 lots in this development each of which are zoned "Residential 3", with sizes ranging from

600 m to 800 m with the lots being suitable for medium density development. But

the lot sizes presented minimal viability for intensive medium density development, and most of the initial purchasers regarded the highest and best use of the properties to be as dual occupancy sites. The market weakened, and by late 1996, sites in this development were being purchased for single residential use only.

The second estate was a Townsville City Council land release of sites in a formerly low-lying area verging on tidal flats. This land was filled in 1995, and drainage works commenced in 1996. Sales were relatively slow again until 1997 when the market began to experience improved selling rates. These sites were mostly

1,000 m in area with a "Medium Density Residential" zoning. Mr Stack says that

again the market viewed the development lots as having a highest and best use as dual occupancy sites. These sites were constructed to a suitable elevation and above inundation during the heavy wet periods in 1997 and 1998.

Mr Stack lists within his valuation document details of two vacant land sales in South Townsville and 14 sales in Railway Estate. The South Townsville sales took

place in July 1996 and December 1997 and sold at prices of $30,000 for a 350 m site at 84 Morey Street and $40,000 for a 607 m site at 27 Perkins Street. The Railway

Estate sales took place from May 1996 to November 1996 at prices ranging from $33,000 to $45,000. Other sales took place from March 1995 to July 1996 at prices ranging from $35,000 to $55,000. But it is the South Townsville sales evidence which provides Mr Stack with the best basis for his valuation. 84 Morey is a significantly smaller lot than is the subject land, but Mr Stack says it is located in a superior position with attractively landscaped Council parklands situated opposite it.

Mr Stack told us that 27 Perkins Street is a similarly sized corner lot opposite a screen fence shielding a railway line. The land had a poor style dwelling upon it at sale date and Mr Stack says that if any value was attributable to the dwelling it was not reported in the sale price. The sale site is situated a similar distance from the rail line (Perkins Street), and stormwater build-up (200 millimetres to 300 millimetres) occurred on this site in the heavy rains in 1997 and 1998. This sale site is regarded by Mr Stack to be a highly comparable property to the subject land.

The valuation under appeal was made by registered departmental valuer Robert Arthur Noakes, who describes the nature of the subject land as being of regular shape, at street level and generally level. It has a westerly aspect and partly restricted views towards Castle Hill.

Mr Noakes made his valuation in relation to the analyses of some nine sales, two of which are also relied upon by Mr Stack (84 Morey Street and 27 Perkins Street). But I note that Mr Noakes says that 84 Morey Street sold on 2 November 1995 and 27 Perkins Street sold on 27 November 1996.

Mr Noakes describes 84 Morey Street as being a small level inside lot at street level with an easterly aspect and with an outlook across vacant adjoining land. He too says that it is inferior to the subject land. Mr Noakes describes 27 Perkins Street as being a rectangular level corner allotment at street level with a northerly aspect and with an outlook towards the city. Mr Noakes confirms that 27 Perkins Street fronts the rail access for the Port of Townsville and overall he considers it to be inferior to the subject land. But Mr Noakes has a different approach to the analysis of this sale. He says the purchaser told him that he has had the old dwelling house demolished (it was under a demolition order) at a cost of $3,000, which cost Mr Noakes, correctly in my view, adds to the sale price to reflect an analysed unimproved value of $43,000 - $3,000 higher than the basic sale price used by Mr Stack for comparison purposes.

The balance of the sales evidence relied upon by Mr Noakes is incorporated within his tendered valuation document and I do not feel the need to tabulate details in this decision.

On the basis of the evidence before me, and on my interpretation and/or reconciliation of the valuation evidence, I find that an unimproved value of $46,000 for the subject land is fair and equitable. It follows that the appeal be allowed, that the determination of the respondent Chief Executive be set aside, and that the unimproved value of Lot 1 on RP 709950, Parish of Coonambelah, be determined in the sum of Forty-six Thousand Dollars ($46,000).

MEMBER OF THE LAND COURT