Vybiral v Chief Executive, Department of Lands

The Land Court in Brisbane heard an appeal from P. and K.A. Vybiral against the Chief Executive, Department of Lands, regarding the determination of the third period rent and unimproved value for Special Lease 26/45705, a 5104m2 industrial lot in Innisfail. The lot is zoned for general industry and is part of the Innisfail Industrial Estate. The Chief Executive recommended a rent of $2700 per annum based on a prescribed state valuation of $90,000 and an unimproved value of $88,000. The Vybirals, through their valuer Mr Malone, contested these figures, arguing for a lower rent and unimproved value.

The court was tasked with determining whether the Chief Executive's determinations were appropriate, specifically the calculation of rent as 3% of the prescribed state valuation and the unimproved value of the land. The Vybirals argued that the Chief Executive's valuation was too high, particularly in light of the depressed industrial land market in Innisfail. They presented evidence from Mr Malone, who valued the land at $65,000 ($13 per m2) as at the relevant date of 31 March 1992, suggesting a rent of $2,010 per annum. The court had to consider the evidence from both valuers and determine which valuation method was more appropriate under the circumstances.

The court found that the Chief Executive's valuation was more consistent with the market conditions at the relevant time. The court noted that while the industrial land market in Innisfail was depressed, the evidence presented by the Chief Executive's valuer, Mr Cross, was more reflective of the conditions at the relevant dates. The court was particularly persuaded by Mr Cross's analysis of comparable sales and his consideration of the size differentials between the subject land and the comparable sales. The court rejected Mr Malone's valuation as it made insufficient allowance for the size of the subject land and incorrectly compared it with the subject land on an unimproved basis without considering the necessity of filling. The court concluded that the unimproved value of the subject land should be adjusted upwards and determined it to be $80,000. Consequently, the court set the rent at 3% of the prescribed state valuation of $82,000, amounting to $2,460 per annum.

The court's decision resulted in the Vybirals' appeal being allowed, the Chief Executive's determination being set aside, and the unimproved value of the subject land being determined as $80,000. The rent for the third period of the lease was also recalculated to be $2,460 per annum.