Example Land Valuation Objection (New Site Valuation was $810,000)
NB: Exact details of the site have been removed for privacy.
I object to my valuation on three grounds.
1. The recent sales of the two properties used for comparison on the Find your land valuations website are for house and land.
- 16 Daphne Pl, Wakerley has a 170 sq m house plus other improvements (fence, driveway). The VG valued improvements at $360,000. Using the lower estimate of the price range for building cost in 2024 ($2600/sq m) and an area of 170 sq m, the house value should be at least $442000, or $460000 when other improvements are included. This would result in a land value of $620,000, a 12.7% increase over the previous valuation.
- 15 Hyndes Cl, Wakerley has a similar house, fence and driveway. The VG has valued improvements at $408,000, which is similar to the value calculated by the method I used for 16 Daphne Place.
I am objecting because
- the estimated value of improvements is too low for 16 Daphne Pl.
- reliable land values cannot be determined when one sale indicates a market increase 2.4 times another sale for similar properties.
- Land valuations should be based on lowest market values. The current housing crisis has been exacerbated by Valuers General propping up prices through high valuations.
2. Comparison with other blocks in the area.
- 38 Stanbrough Road, Gumdale. 2758 sq m. New Site Value is $540,000.
- 69 Ermelo Rd, Gumdale. 1237 sq m. New Site Value is $530,000.
These properties are across the road from [objected property]. While similar in many respects they have almost 2 and 4 times the area. The value of [objected property] should not exceed $500,000.
3. Market conditions do not satisfy the requirements of the Land Valuation Act.
As demonstrated above, current market conditions are not conducive to the fair valuation of properties. Demand is very high, supply is very low, Australia’s housing affordability crisis features continuously in news reports, on talk back shows, in social media and was a major issue in the recent federal election. Prices are exorbitantly high and interest rates and rents are high. This creates a high level of anxiety in buyers and promotes sales by auction which do not provide a reasonable period within which to negotiate a sale. It favours a cashed up investment market over owner occupiers.
This valuation has been based on sales that cannot reasonably meet the test for bona fide sales.
- Under 18(3)(b) of the Land Valuation Act, because buyers in these market conditions, knowing they will have to pay an exorbitant price, will have a high level of anxiety (18(1)(a)). This is enhanced by the high proportion of auctions, which do not give a reasonable period for negotiating the sale (18(1)(b)).
- Under 18(3)(c) because market conditions favour the cashed up investment segment of the market while excluding most first home buyers. (18(2)(b))
- Under 18(2) because this state of the market extends across all locations.
In consideration of the unusual circumstances of the market, exacerbated by recent high immigration and post-COVID supply shortages, I submit that the valuations should not have been done, under 74(1) of the Land Valuation Act.
