I wrote a short article
recently which provided some tips on managing the compensation process for properties affected by Cross River Rail.
While the Cross River Rail project remains a key focus for many CBD landowners, a recent Land Court decision
has resulted in substantial reductions being applied to Site Value assessments for residential, commercial and student accommodation properties.
By way of background, the Valuer General (VG) of Queensland undertakes periodic assessments of Site Value for rating and taxation purposes. Site Value is a defined term under the Land Valuation Act 2010 and is used by Local Government and the Office of State Revenue to levy council rates and land tax. Site Value assessments are therefore of critical importance in determining net income and hence capital values of improved properties, particularly in the CBD where statutory Site Values generally range from $20m up to $100m for larger sites.
The focus of the recent Land Court decision was on three properties. The relevant date of valuation was 1 October 2016 for all three ‘test case’ properties. The 1 October 2015 valuation was also considered for the residential property. The table below provides a summary of the properties, the contended positions and the determinations made by the Court. The reductions amount to over $30m for the three properties at the 1 October 2016 date. Legal representation for the appellants was provided by Allan Lonergan of Colin Biggers and Paisley Lawyers and Roger Traves QC. Allen Crawford of Chesterton gave valuation evidence on behalf of the appellants. Neil Murphy of Savills also represents the appellants.
There is an appeal period which expires in late December. If there are no appeals within this timeframe and the Court determined values stand, there will undoubtedly be the need for landowners to re-engage with the VG to discuss the ramifications of this decision.
CBRE currently acts for a substantial portion of CBD landowners in Site Value objections and appeals and is also heavily involved with larger commercial and retail assets throughout the state.
If you would like to discuss the details of the above matters any further, feel free to contact us.