Marcus Cornelius Noorbergen v Valuer General

1 This is an appeal under s 37 of the Valuation of Land Act 1916 No 2 against the decision of the Valuer-General to assign a land value at Lot 1, DP 1039133, being No 126 Lake Road, Balcolyn, NSW 2264, at One Hundred and Thirty-Four Thousand Dollars ($134,000), in respect of Valuation No 2959502 (Lake Macquarie District), as at 1 July 2001. 2 Mr K B Bayliss Registered Practising Real Estate Valuer No 807 (without limitation) during the hearing determined the land value of the subject land to be $300,000 as at 1 July 2001. Land 3 The land is located on the south-eastern corner of Lake Road and Yarrawonga Park Road at Balcolyn. Balcolyn is a residential suburb located in the Morisset peninsula on the western side of Lake Macquarie. The township and railway station of Morisset are about 8k distant. Bonnells Bay shopping village is 3k distant. 4 Primary and high schools are within easy commuting distance and are serviced by private buses. 5 There are about eight (8) similarly sized holdings on the southern side of Lake Road. Typical residentially sized allotments are found on the northern side of Lake Road and erected upon these lots are modern, detached, average quality residential dwellings. 6 On the western side of Yarrawonga Park Road is the Crusaders Lake Macquarie Outdoor Recreation Centre. Land value 7 Under s 6A Valuation of Land Act 1916 No. 2 'land value' is: 6A(1) The land value of land is the capital sum which the fee-simple of the land might be expected to realise if offered for sale on such reasonable terms and conditions as a bona-fide seller would require, assuming that the improvements, if any, thereon or appertaining thereto, other than land improvements, and made or acquired by the owner or the owner's predecessor in title had not been made. (2) Notwithstanding anything in subsection (1), in determining the land value of any land it shall be assumed that: (a) the land may be used, or may continue to be used, for any purpose for which it was being used, or for which it could be used, at the date to which the valuation relates; and (b) such improvements may be continued or made on the land as may be required in order to enable the land to continue to be so used, but nothing in this subsection prevents regard being had, in determining that value, to any other purpose for which the land may be used on the assumption that the improvements, if any, other than land improvements, referred to in subsection (1) had not been made. (3)… Zoning 8 The land is zoned Residential 2(a) under the Lake Macquarie Local Environmental Plan 1994, (LMLEP). Dwelling houses are permissible with consent under the LMLEP. There is also a draft planning scheme in course of preparation, under which the land is also proposed to be zoned Residential 2(a), but this zone is not relevant for the present appeal. 9 Under s 79C of the Environmental Planning and Assessment Act 1979 the provisions of an environmental planning instrument are to be taken into account in assessing development applications and land value might well be influenced as a result of the statutory controls. 10 Lake Macquarie Council told Mr Bayliss that a 61-lot residential subdivision had been lodged in 1983 and was later withdrawn. A building approval for a dwelling on the land was granted consent on 21 October 1991 and septic tank approved on 4 November 1991. 11 Mr Bayliss calculated the land value based on the subject Lot 1 being used as a single home site. The appellant's contention of land value 12 The appellant contends for a lower land value than that determined by the Valuer-General at $89,461.50. He had allowed for the removal or restoration of a partly erected dwelling on the land. Issue 13 To determine the correct land value. Hearing 14 At the hearing the Court heard evidence on behalf of the Valuer-General from: · Mr K B Bayliss, Registered Valuer No 807, (without limitation). 15 Evidence for the appellant was given by. · Mr M C Noorbergen, in person. Evidence and submissions 16 Mr Bayliss determined the 'land value' of No 126 Lake Road, Balcolyn, as at the base date of 1 July 2001 and had regard for comparable sales of nearby land. Sales evidence 17 As there are only eight similar sized, similarly zoned properties in the locality, sales evidence transacted in 2001 was severely limited. 18 Mr Bayliss considered the following sales to be the most comparable. SALE 1: No 29 Helena Street, Balcolyn: Sold 17/07/2001 for $98,000. Site area 686m2. Vacant, regular shaped allotment in a recently developed residential subdivision. The land rises from the road frontage to an excavated building site. No significant views.

SALE 2: No 19 Lake Road, Balcolyn: Sold 5/10/2001 for $100,000. Site area 1,011m2. Larger, vacant, regular shaped allotment, even slope from road, filtered water glimpses to rear.

SALE 3: No 110 Lake Road, Balcolyn: Sold 19/06/2002 for $515,000. Site area 9,713m2. Similar sized to subject, small acreage, two blocks away. Level to low lying land. Improvements comprise a two-storey brick and tile residence with a double garage under the main roof. The value of the improvements at time of sale is estimated at: Dwelling Living area 209m2 x $800 per m2 $167,200 Garage 33m2 x $350 per m2 $11,550 Front verandah 8m2 x $250 per m2 $2,000 Basic ground improvements Say $5,000 Total value of improvements $185,750

This sale shows a deduced land value of $330,000. The sale was transacted nearly 12 months after the base date, in a steadily rising property market.

SALE 4: No 118 Lake Road, Balcolyn: Sold 27/03/2002 for $305,000. Site area 9,713m2. Adjoining vacant, small, timbered acreage. Has been recently selectively cleared and fenced. Mr Bayliss did not know whether this property had been offered on the open market. Sale transacted nine months after base date, however market price paid as supported by Sale 3.

SALE 5: No 76 Marconi Road, Morisset: Sold 5/08/2001 for $210,000. Site area 9,463m2. Vacant, regular shaped, timbered, small rural homesite, not sewered. Similar sized allotment. Sale transacted close to base date. Inferior zoning: Rural 1(a).

19 Mr K B Bayliss determined the land value as if the subject land were vacant at the Relevant Date of 29 October 2002. 20 The valuation was made by Mr Bayliss under Section 14A of the Valuation of Land Act 1916 . Subject Lot 1 and adjoining Lot 3 Section N in Deposited Plan 2458 were valued together as both lots were held in the same ownership. On 27 March 2002, Marcus Cornelius Noorbergen and Maxine Joy Noorbergen sold Lot 3 to T J Developments Pty Limited for $305,000. Separate land valuations were supplied on 26 June 2003 for rating purposes. The subject land is now described as Lot 1, DP 1039133. 21 The rate was: Site area 9,537m2 Rate per square metre $31.45/m2 site Land Value $300,000

22 He analysed and examined the comparable sales evidence and concluded in oral evidence that the land value at the base date of 1 July 2001 was $300,000, 23 Mr Noorbergen of the opinion that the land value at the base date of 1 July 2001 was too high for the reasons set out in his statement, [Note: Exhibit A]. 24 Mr Noorbergen and Ms Jowett made their submissions in relation to the evidence. 25 Ms Jowett submitted that the Court determine the land value on the uncontroverted evidence of Mr Bayliss. 26 Mr Noorbergen sought to maintain a lower land value. Findings 27 Mr Bayliss is an experienced valuer with 26 years valuation experience in valuing all classes of property for both statutory and non-statutory purposes. He has 15 years' experience in carrying out rating valuations whilst in the employment of the former Valuer General's Department and the State Valuation Office. 28 He has local knowledge of Gosford, Wyong, Lake Macquarie and Newcastle Local Government areas having resided on the Central Coast for the past 25 years. Currently employed by Dupont Fagan, Newcastle, he was awarded a three-year contract commencing 1 May 2002 to supply land valuations for Lake Macquarie and Newcastle. 29 In evidence Mr Bayliss told the Court that the correct 'land value' for the subject land should be $300,000. That evidence was not disturbed in cross-examination. I accept that evidence, as it would be in line with the five comparative sales in Exhibits 2 and 4 and similar to that of the adjoining land at No 118 Lake Road, Balcolyn, in Sale No 4. There was no evidence on behalf of the appellant to counter the evidence of Mr Bayliss, which is persuasive. Conclusion 30 I consider the land value at the base date of 1 July 2001, should be Three Hundred Thousand Dollars ($300,000), under s 6A of the Valuation of Land Act 1916 No 2. Orders 31 The Court orders that: 1. The appeal under s 37 of the Valuation of Land Act 1916 is dismissed.

2. The land value at the base date of 1 July 2001 in respect of Valuation No 2959502 (Lake Macquarie District), at Lot 1, DP 1039133, being No 126 Lake Road, Balcolyn, NSW 2264, is Three Hundred Thousand Dollars ($300,000).

S J Watts Commissioner of the Court sw

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