Brown v Minister for Land [1991] QLC 230

Re: Determination of Unimproved Value - Conversion of Tenure Purposes - GHPL 23/16246A Hughenden District - Lessee: Norman Andrew Brown DECISION LAND COURT, BRISBANE. 21st June, 1991. This matter came before the Court for determination at Hughenden on 2nd May, 1991. Mrs Patricia Florence Brown had the conduct of the case for the Lessee and Land Commissioner John Alfred Gibbs represented the Crown. Mr Gibbs has valued the land comprised in GHPL 23/16246A at the rate of $10.00 per hectare as at a relevant date of 4th January, 1990. The lease contains an area of 8006.301 hectares and is situated 21 kilometres north of Julia Creek. Mrs Brown told us that since 1987 the lease has been used purely for wool growing and not for cattle grazing. She referred to the sale of a property known as "Yambora" which is situated to the north west of the subject lease. It comprises an area of 13208 hectares and sold late in 1988 for $775,000 - or $58.67/ha. "Yambora" has by now been offered for resale and Mrs Brown suggests it can be brought for any offer over $30/ha. Mrs Brown suggests that land values have dropped considerably since the peak of the market a few years ago, particularly in the last 12 months, and she fears the market will go down even [1991] QLC 230 -- 1 of 3 -- - Page 2 - further. Mrs Brown therefore contends that an unimproved value of $10/ha for conversion of tenure purposes as at 4th January, 1990 is too high. Mr Gibbs describes the nature of the country on the subject lease as open gently undulating brown soil downs with parts carrying fairly thick prickly acacia. He considers the property to be suitable for wool growing and limited-· breeding and has a valued it as a sheep grazing proposition. His estimate of carrying capacity is 1 sheep to 1.6 hectares. Mr Gibbs bases his valuation of the analyses of two sales. The first is GHPL 23/16112 - Lot 9 on Plan EN.62 ("Eddington°) Parish of Eddington containing 13,569 hectares on 26th July, 1987 from Chaplain to Anderson for $502,950 - analysed unimproved value $11.83 per hectare. ·Eddington" is 13 kilometres south west from the subject lease and also comprises open undulating downs with some loose soil and some pebbly ridges. It is subject to flooding along Eastern Creek. Mr Gibbs estimates the carrying capacity of "Eddington" also at 1 sheep to 1.6 hectares and sees the subject lease to be slightly inferior to "Eddington" which has better access, better water and no prickly acacia. The second sale relied upon by Mr Gibbs is SLPF 23/1603 - Lot 5 on Plan EN.133 Parish of MacGillivary ("Clifton Park") - containing 15143.482 ha which sold on 26th November, 1987 from Daley to Bennette for $616,450. Mr Gibbs analyses this sale to show an unimproved value of $6.82 per hectare. It is situated 28 kilometres southwest of the subject land and is suitable for wool growing and limited breeding with a carrying capacity of 1 sheep to 1.8 hectares. The country on "Clifton Park" comprises 64% open brown soil downs, ashy in parts with an area of gravel and hard wind swept country and 36% flooded channels. Mr Gibbs sees the subject land to be superior to "Clifton Park" as it has better country and carrying -- 2 of 3 -- - Page 3 - capacity and is in a slightly better situation although "Clifton Park" has two permanent water holes but really both properties rely on artificial water supplies. Mr Gibbs agrees with Mrs Brown that the market for properties in the area has fallen considerably of recent times but says it was still holding up at the relevant date for this valuation. He says that the sale prices did not start to fall until-· the latter half of 1990 and may have continued to falt through 1991. Now the evidence is clear that there has been a recent fall in the market value of grazing properties in the District but what has to be determined here is the unimproved value of the subject land as at the date when the Minister received the application for conversion - vide Section 140 (6) (a) of the Land Act 1962 - 1990. As to the unimproved value of the land at that date (4th January, 1990) I only have the evidence of Mr Gibbs to rely on and he is confident that the market at that time was holding up well at the former level disclosed by his sales which took place in 1987. In addition I must agree with Mr Gibbs that an unimproved value of $10/ha is in line with the analysed sales evidence. In these circumstances I can only follow his recommendation as to unimproved value. Accordingly the unimproved value of GHPL 23/16246 A Hughenden District for the purpose of conversion of tenure to freeholding lease is determined in the sum of $10.00 per hectare. (C.H. Carter) Member of the Land Court. -- 3 of 3 --