Valuer-General of New South Wales v In Adam Pty Ltd

The Valuer-General of New South Wales appealed to the Court of Appeal of New South Wales against a decision of the Land and Environment Court concerning the unimproved land value of a heritage-listed building owned by In Adam Pty Ltd. The dispute centred on the valuation of the land for the purposes of the *Valuation of Land Act 1916* (NSW).

The primary legal issue before the Court of Appeal was whether, in determining the unimproved land value, the Valuer-General was entitled to make an assumption that the heritage-listed building could be replaced with a new building of the same design and materials, thereby increasing the cost of construction and, consequently, the land value. This involved considering the proper application of the "same building but new" assumption in the context of heritage restrictions.

The Court of Appeal held that the Valuer-General's approach was incorrect. It reasoned that the heritage listing imposed a constraint on the use and development of the land, which must be reflected in the valuation. The assumption that a new building of the same design and materials could be constructed, without regard to the heritage restrictions that would apply to such a new construction, did not accurately represent the market value of the land. The Court affirmed that the valuation must take into account the actual restrictions on the land, including those imposed by heritage listing, when determining its unimproved value.

The Court of Appeal confirmed the orders previously pronounced orally on 28 November 2011.