Under s 36(2b) of the Metropolitan Region Town Planning Scheme Act 1959 (WA), reserved land is to be valued by assessing the premium a hypothetical purchaser would pay over rural value to reflect development potential, not by inquiring what the zoning would have been but for the reservation. The NSW approach under the Land Acquisition (Just Terms Compensation) Act 1991 (NSW), which permits disregarding the reservation itself, is distinguishable because s 36(2b) requires only the effect on value of the Scheme to be disregarded, not the Scheme itself. Environmental characteristics that existed at the valuation date but were only confirmed by later studies may be attributed to the hypothetical purchaser's knowledge. In valuation proceedings, there is no overriding principle that the landowner's compensation should not be eroded by adverse costs orders; the usual principle that costs follow the event applies, and success is measured by proximity to the court's determined value.
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