Cerasani v Valuer-General [1992] QLC 248

Re: Appeal against determination of Valuer-General - Brisbane City Council. V91-1001. Gabriele Cerasani V. Valuer-General DECISION LAND COURT, BRISBANE 1st May, 1992 This appeal is against the determination of the Valuer-General of the unimproved value of Lots 19 and 20 on RP 8725 in the sum of $270,000 as at 31st March, 1990, being the date fixed by the Valuer-General for the purposes of the Annual Valuation of the Area. Lots 19 and 20 are situated at 7 Merthyr Road, New Farm. The combined area of the site is 809 square metres. The land is zoned "Residential B - R4" which is a multi-unit zoning. The property is improved with an aged dwelling which has been converted into flats. The valuation which issued was tnerefore issued at a value relative to the highest and best use of the land as "B - R4" land. The appellant is contending for a valuation of $139,500. Mr Cerasani gave evidence in support of the grounds of his appeal, whilst Mr G.W. Lindberg, registered valuer in the employ of the Department of Lands, gave evidence in support of the value applied by the Valuer-General. The valuation under appeal is required to be made as at 31st March, 1990. For the purposes of the previous annual valuation, a value (after objection) of $155,000 was applied to the site. There is no dispute that the highest and best use of the land is for redevelopment under its current zoning. The case of Mr Cerasani begins with the value applied to the site for the purposes of the previous annual valuation. For that purpose the land was valued after objection at $155,000. From that point he goes directly to the market applying virtually at the date of hearing. [1992] QLC 248 -- 1 of 3 -- 2 He refers to a sale in June 1991 of a property situated at 92-94 Oxlade Drive, New Farm, which sold in that month at $760,000. The property in April 1989 sold for $1.2 million and was valued by the Valuer-General in that sum. The applied value is equivalent to a value of $663 per square metre of gross floor area (GFA). He then refers to the current market and identifies the Queensland Housing Commission and builders as the relevant buyers. He says that the Queensland Housing Commission will pay no more than $27,500 per unit site. Advices received from a real estate agent say that builders would pay between $35,000 to $40,000 per unit site. Finally he says that statistics taken from the Department of Lands dealing with the average price of single unit residential land in New Farm showed a rise of 5% between 1st July, 1990 and 31st December, 1992. As it is impossible to correlate this evidence with land for which the highest and best use is for multi-unit purposes, these statistics have little relevance . The value applied to the land by Mr Lindberg was based on sales. The subject property has an area of 809 square metres and a GFA of 485 square metres. The applied value is equivalent to a value of $560 per square metre of GFA or $45,000 per unit site. Sales compared directly with the site comprise - 1. 14-18 Maxwell Street - R4 - GFA 850 m 2 Sale 3.4.90 reflected $632 per m2 of GFA; 2. 92-94 Oxlade Drive - R6 - GFA 1808 .m 2 Sale 4.4.89 reflected $661 per m 2 of GFA; 3. 67 Oxlade Drive - R4 - GFA 517m 2 Sale 18.5.89 reflected $577 per m 2 of GFA. The value which Mr Cerasani is seeking is equivalent to a value of $288 per square metre of GFA or $23 ,250 per unit site. The subject site has a north-westerly aspect presently with views to Kangaroo Point and the Central Business District. It is situated between Llewellyn and Griffith Streets. Between Griffith Street and the Brisbane River is one row of lots. Directly opposite the site is an area of Commonwealth land containing 1.0217 -- 2 of 3 -- 3 hectares which is zoned "Special Facility - Commonwealth Government" and is used by the Commonwealth Government in connection with marine observatory work. It is not a shipyard but has a connection with ships. Mr Cerasani says that this area is earmarked for high-rise development. If that occurs views will be impaired. This is a feature which he believes any intending purchaser of the land would take into account. The sale at 14-18 Maxwell Street (which is opposite Llewellyn Street) is also directly opposite the Commonwealth land. Views from this site currently are across the Commonwealth property an,d the river to apartment buildings. The evidence is that views to the City (western side) are obstructed by trees on adjacent lands. The sale land is more elevated that the subject land. Any development of the Commonwealth land for high-rise will impact on both properties but without knowledge of the profile of any likely development, a potential purchaser would have to form his own opinions on the impact. The sale at 92-94 Oxlade Drive has Merthyr Park between the rear boundary and the river. The sale at 67 Oxlade Drive is on the northern alignment and on the corner with Turner Street. The aspect is to the east and south-east with no views. This sale land has a GFA of 517 square metres compared to the GFA of 585 square metres on the subject site. It is clear on this evidence, all of which occurred subsequent to the 1989 valuation date, that as at 31st March, 1990, the value applied by the Valuer- General has market backing and fits reasonably well with the sales. I must accordingly dismiss the appeal. The appeal is dismissed and the determination of the Valuer-General affirmed. D. M. White Acting President of the Land Court -- 3 of 3 --