Cousin v Chief Executive, Department of Lands [1995] QLC 61

LAND COURT BRISBANE 28 JULY 1995 Re: Appeal against a valuation Valuation of Land Act 1944 Brisbane City Council - South Brisbane AV94-559 Robert and Valerie Cousin v. Chief Executive, Department of Lands D E C I S I O N This is an appeal against the determination of the Chief Executive, Department of Lands, of the unimproved value of Lots 61 and 62 on RP 12076, Parish of South Brisbane, in the sum of $190,000 for the purposes of the annual valuation of the area as at 30 June 1993. The appellants are contending for an unimproved value of $144,000. The subject land, which contains an area of 1012m2, is situated at 28 Carl Street, Woolloongabba. The land is zoned "Residential B R4" and is improved with an old residence which has been converted into four flats. It is agreed that the highest and best use of the land is for redevelopment under the existing zoning. In this context Mr Cousin sees the potential of the site as 6 x 2 bedroom units and would value such sites at $20,000 to $25,000 each for reasons that the area, in his opinion, is better suited for moderate standards of development than for anything of a higher order. He sees the isolation of the site from stormwater drainage as an additional cost of redevelopment. Otherwise he says that the site suffers badly from freeway noise and that the applied value is out of line with unit site values in more acceptable areas. No evidence was given in support of the last matter. Evidence on behalf of the Chief Executive was given by Mr JR Kilgour, registered valuer in the employ of the Department of Lands. He was not the valuer who valued the land in the first instance and, after considering sales evidence, came to the opinion that a reasonable value to apply is $185,000. Briefly stated, this is the result of the application of a value of $305 per m2 to an area of 607m2 being the permissible GFA for a site of this size in the relevant zoning. He put before the Court sales of two parcels of land in support of his opinion. These sales are situated in Carl Street (s.1) and Tottenham Street (corner with Carl Street - s.2). The former site is similar in shape, dimensions, area and zoning to the subject land. The sale of the land to the QHC in October 1992 was for a consideration of $210,000. The applied value is $200,000 or $330 per m2 of GFA (607m2). He says that the sale land fronts a busy street, is similar in shape and area to the subject land, is steeper than the subject land but has fewer [1995] QLC 61 -- 1 of 2 -- 2 drainage problems. Sale 2 of 1232m2 fetched $270,000 in December 1992. The sale reflected a value of $365 per m2 of GFA and has an applied value of $245,000 or $335 per m2. The land was developed with permission for a motel type of use - bed and breakfast accommodation. Neither party placed a great deal of reliance on the sale. In the opinion of Mr Cousin, s.1 has a greater degree of superiority than is seen in the comparison made by Mr Kilgour, principally because the sale land in his opinion is nearer the Princess Alexandra Hospital and shopping facilities and has less noise effects from the freeway. Wolseley Street and Carl Street are parallel with O'Keefe Street on the north; Tottenham Street to the south and the Princess Alexandra Hospital to the west. Mr Kilgour said that on walking both streets he would not differentiate between them in terms of noise factors and that whilst it may be argued that the subject property is more affected by freeway noise, the sale land is nearer railway noise. He could see little between the sites in terms of their location to amenities. On my interpretation of the evidence, there is indeed little between the sites. I would simply say that the market evidence given by Mr Kilgour demonstrates that the value is of the order of the value he applied and having reflected upon his evidence of comparability with sale 1, I find no reasons of substance for disturbing the value he seeks to apply. Accordingly, the appeal is allowed, the determination of the Chief Executive is set aside and the unimproved value of the subject land is determined in the sum of One Hundred and Eighty-five Thousand Dollars ($185,000). DM WHITE PRESIDENT OF THE LAND COURT -- 2 of 2 --