36520 — Valuation for Resumption
Overview
Node 36520 addresses the methodology applied to value land that is compulsorily acquired, or resumed, by an acquiring authority. Resumption valuation differs from a conventional market valuation in a fundamental respect: there is no willing seller, and the valuer must instead assess a hypothetical market value as at a statutory date fixed by the relevant acquiring legislation.
The valuer draws on the same underlying comparison, income, and cost approaches addressed in node 36100, but applies them as at a specific, often past, valuation date — typically the date of gazettal or vesting of the acquisition — which may require the valuer to reconstruct market evidence retrospectively. Where only part of a landholding is acquired, a before and after approach is commonly applied, comparing the value of the entire holding immediately before and immediately after the acquisition to derive total compensation.
This node is intended for valuers, acquiring authorities, and affected landowners requiring an assessment of the market value of land compulsorily acquired, applying the general methodology addressed in node 36100 and the professional standards addressed in node 36200 to the resumption context specifically.
Scope & Boundaries
This node addresses the valuation methodology applied to land actually taken by compulsory acquisition. It does not address the broader statutory heads of compensation beyond market value, addressed in node 36510, or the assessment of severance and injurious affection to land retained by the owner, addressed in node 36530.
It does not address general valuation methodology in the abstract, addressed in the 36100 sub-series, or the professional standards and reporting framework applicable to all sectors, addressed in the 36200 sub-series.
This node describes the general methodology applied to valuation for resumption as at the time of writing. The specific statutory date of acquisition and valuation basis applicable to a given acquisition should be confirmed against the applicable acquiring legislation and current case law.
Key Concepts
Regulatory & Legal Framework
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Valuation of Land ActState Valuers-General(state-based, for example the Valuation of Land Act 1916 (NSW) and equivalent legislation in other states) is frequently the statutory source of valuation methodology applied in resumption assessments.
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Land Acquisition (Just Terms Compensation) Act 1991 (NSW)State land acquisition authoritiesAnd equivalent legislation in other states fixes the statutory date of acquisition and valuation basis for resumption.
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ANZVGN guidance notes on compulsory acquisition valuationAustralian Property Institute & Property Institute of New ZealandProvide methodology guidance specific to resumption and retrospective valuation.
Practical Application
The scope of resumption valuation depends on whether the whole or only part of a landholding is compulsorily taken.
| Scenario | Application | Outcome |
|---|---|---|
| An acquiring authority resumes an entire residential property for a rail corridor | The valuer assesses the hypothetical market value of the whole property as at the date of acquisition | Compensation reflects the property’s full market value at the statutory date |
| Part of a commercial site is resumed for road widening | The valuer applies a before and after valuation to the retained balance | Compensation captures both the land taken and any diminution in the retained land’s value |
| A compensation dispute requires valuation evidence for a date several years in the past | The valuer prepares a retrospective valuation reconstructing market evidence as at the historical acquisition date | The valuation supports tribunal or court determination notwithstanding the passage of time |
Cross-Series References
Findings are presented on the basis of data and evidence alone.
