❓ A WA parliamentary question on notice addresses discrepancies in land prices along Jabiru and Packsaddle Roads in Kununurra, questioning the pricing methodology used by the Department of Regional Development and Lands. The Minister's response cites a 'before and after' valuation process outlined in the 2003 Packsaddle and Riverfarm Road Lot Payment Deed.
AnsweredQoN 6311Legislative Assembly
QuestionView source ↗
Regarding the price of land offered for sale by the Department of Regional Development and Lands along Jabiru and Packsaddle Roads in Kununurra, I ask:
(a) why is there such a major discrepancy in price per hectare for adjoining lots that are similar in size ie Lots 543, 544 & 545 on Packsaddle Road where lot 544 is over $40,000 more;
(b) why is there such a major discrepancy in price per hectare for adjoining lots that are smaller in size ie Lots 51, 564 and 478 on Jabiru Road where Lot 564 is almost half the size of the lots either side yet 5 times the price;
(c) explanations offered to potential buyers include that the blocks were increased substantially in size and gave river frontage. Is the Minister aware that all the blocks have river frontage, and if so how does the Minister explain the apparent incorrect explanation;
(d) why is there such a major discrepancy in price per hectare for adjoining lots that were increased by a similar amount and have similar river frontage, ie Lots 543 and 544 for which there is a $44,000 difference; and
(e) can the minister explain what methodology is used in pricing the blocks?
(a) why is there such a major discrepancy in price per hectare for adjoining lots that are similar in size ie Lots 543, 544 & 545 on Packsaddle Road where lot 544 is over $40,000 more;
(b) why is there such a major discrepancy in price per hectare for adjoining lots that are smaller in size ie Lots 51, 564 and 478 on Jabiru Road where Lot 564 is almost half the size of the lots either side yet 5 times the price;
(c) explanations offered to potential buyers include that the blocks were increased substantially in size and gave river frontage. Is the Minister aware that all the blocks have river frontage, and if so how does the Minister explain the apparent incorrect explanation;
(d) why is there such a major discrepancy in price per hectare for adjoining lots that were increased by a similar amount and have similar river frontage, ie Lots 543 and 544 for which there is a $44,000 difference; and
(e) can the minister explain what methodology is used in pricing the blocks?
AnswerView source ↗
Answered
22 November 2011
Responded by
Minister for Lands
Response time
35 days
(a) (b) (d) (e) The sale of Crown land adjoining lots on Jabiru and Packsaddle Roads is being undertaken in accordance with the 2003 Packsaddle and Riverfarm Road Lot Payment Deed.
The deed outlines that the valuation of Crown lands to be sold is to be carried out according to a methodology commonly known as a 'before and after' valuation. This process involves determining present market values for the lots before and after amalgamation of the Crown land. The difference between the two values is the 'added value' the landowner would likely realise following the amalgamation of the additional land into his holding.
Advice from the Valuer General's Office indicates that latest sales evidence highlights the importance of the residential use component within these lots. Although zoned Rural Agriculture 2, the majority of the value of these lots is in the first 1 to 4 hectares which are used for house, garage, sheds, etc. Therefore with larger lot sizes the 'added value' may have minimal impact on the ultimate value.
(c) Prior to the amalgamation offer, existing lots had river frontage by virtue of the Crown land between these lots and the river. This under-utilised Crown land could have been configured for sale in lots that if sold to new buyers would result in the loss of river frontage to existing lot holders. Instead the land was offered to existing lot holders via an amalgamation process that would preserve their river frontage subject to a 30 metre wide foreshore.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
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The deed outlines that the valuation of Crown lands to be sold is to be carried out according to a methodology commonly known as a 'before and after' valuation. This process involves determining present market values for the lots before and after amalgamation of the Crown land. The difference between the two values is the 'added value' the landowner would likely realise following the amalgamation of the additional land into his holding.
Advice from the Valuer General's Office indicates that latest sales evidence highlights the importance of the residential use component within these lots. Although zoned Rural Agriculture 2, the majority of the value of these lots is in the first 1 to 4 hectares which are used for house, garage, sheds, etc. Therefore with larger lot sizes the 'added value' may have minimal impact on the ultimate value.
(c) Prior to the amalgamation offer, existing lots had river frontage by virtue of the Crown land between these lots and the river. This under-utilised Crown land could have been configured for sale in lots that if sold to new buyers would result in the loss of river frontage to existing lot holders. Instead the land was offered to existing lot holders via an amalgamation process that would preserve their river frontage subject to a 30 metre wide foreshore.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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