Was The Land For Western Sydney Airport Overpriced?

 

News article: Was The Land For Western Sydney Airport Overpriced?

A billionaire family has banked a few extra dollars after the Australian Government paid ten times the going rate for a piece of land located in the future Western Sydney Airport precinct.

  bevans Site Admin

Location: Melbourne, Australia
How can you view this with any lens other than one looking at corruption?  Australian Taxpayers have forked over 10x the required amount.

Corruption has become so ingrained and so prolific in this country the government no longer cares if it has been discovered or not.  At the same time the government has reduced funding to the oversight department who found the sports rorts punishing them for uncovering more corruption.

Was The Land For Western Sydney Airport Overpriced?

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  michaelgm Chief Commissioner

I believe the above property has been leased back to the previous owner, (cannot recall source) and for the purpose of determining the pricing for the lease, the parcel of land was valued at $920k.

Not forgetting Slipper was punted for around $900 in cab fares,  Dastyari for $1300, for paid bills and Barry O’Farrel for $3000 bottle of Grange. The LNP doesn’t care, there are simply zero repercussions.

There has also been a maritime disaster of Port Botany, government stated 40 vessels have been unable to unload yesterday, ship tracker today showed four. 36 must be sitting on the bottom somewhere.
  freightgate Minister for Railways

Location: Albury, New South Wales
Looks similar to that water deal done by the libs with the offshore company being linked to the liberal party. Paying 10 times above the price using taxpayers money is fraud and theft.
  simstrain Chief Commissioner

If you think a 12 hectare site in Sydney around the new airport is only worth $2.12 million then your kidding yourself. For 12 hectares that $21 million sounds about right if anything it sounds like the government got a good deal for only that much money. Don't kid yourself about the value of that land only being worth $2 million.
  SinickleBird Assistant Commissioner

Location: Qantas Club at Mudgee International Airport
The land value will have risen when Badgerys Creek became the preferred site of the airport, which was well before the final announcement Of approval to proceed.

Similar principle to farm land being rezoned to residential.
  viaprojects Chief Train Controller

If you think a 12 hectare site in Sydney around the new airport is only worth $2.12 million then your kidding yourself. For 12 hectares that $21 million sounds about right if anything it sounds like the government got a good deal for only that much money. Don't kid yourself about the value of that land only being worth $2 million.
simstrain

only if you can build on it ... considering the land is at the end of a runway with a few years before the runway is build ..the price is a joke .. ie the owner tossed a unreal price for not selling and some one ok'ed the deal .. only problem is who approved the deal  ...
  simstrain Chief Commissioner


only if you can build on it ... considering the land is at the end of a runway with a few years before the runway is build ..the price is a joke .. ie the owner tossed a unreal price for not selling and some one ok'ed the deal .. only problem is who approved the deal  ...
viaprojects

That doesn't matter one bit if it is only the end of the runway. The owner wanted that much and the government paid for it. There is no corruption and is what the government had to pay for it.

Sydney is expensive and everybody needs to recognise that and I suspect the government wanted to control that land for future reasons like avoiding noise issues like the current Sydney airport.
  Transtopic Chief Commissioner

Location: Sydney

only if you can build on it ... considering the land is at the end of a runway with a few years before the runway is build ..the price is a joke .. ie the owner tossed a unreal price for not selling and some one ok'ed the deal .. only problem is who approved the deal  ...
That doesn't matter one bit if it is only the end of the runway. The owner wanted that much and the government paid for it. There is no corruption and is what the government had to pay for it.

Sydney is expensive and everybody needs to recognise that and I suspect the government wanted to control that land for future reasons like avoiding noise issues like the current Sydney airport.
simstrain
It's irrelevant what the owner wanted.  Any prudent purchaser would only pay a price that reflects its current zoning and best use, which is farmland.  The evidence based on nearby sales suggests that the land is worth around $2 million, so it's a bit of a stretch to ask for 10 times that figure.  Where an owner, in this case the Commonwealth, wants to purchase adjoining land, there can be a Special Value added to the purchase price in these circumstances, but certainly nothing like 10 times its inherent value.

The government didn't have to pay what the owners of the parcel wanted where it is considered unreasonable, as it has the option of using its compulsory acquisition powers, either now or in the future.  Using the excuse that they wanted to avoid protracted legal proceedings is hardly credible.  The fact that the Department relied upon a valuation undertaken by a valuer recommended by the owners demonstrates extremely poor due diligence and is inexcusable.  Would you buy a property relying upon a valuation supplied by someone recommended by the owner?  There is already a blanket prohibition of residential development around the airport environs.
  speedemon08 Mary

Location: I think by now you should have figured it out
https://www.theguardian.com/australia-news/2020/oct/01/ex-nsw-mp-stood-to-earn-690000-for-helping-to-grease-the-wheels-in-land-sale-icac-hears

Ex-NSW MP stood to earn $690,000 for helping to 'grease the wheels' in land sale, Icac hears

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The former New South Wales Liberal MP Daryl Maguire would have earned more than $690,000 for helping to “grease the wheels” in a lucrative sale of land near the Western Sydney airport, a corruption inquiry has heard.



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  nswtrains Chief Commissioner


only if you can build on it ... considering the land is at the end of a runway with a few years before the runway is build ..the price is a joke .. ie the owner tossed a unreal price for not selling and some one ok'ed the deal .. only problem is who approved the deal  ...
That doesn't matter one bit if it is only the end of the runway. The owner wanted that much and the government paid for it. There is no corruption and is what the government had to pay for it.

Sydney is expensive and everybody needs to recognise that and I suspect the government wanted to control that land for future reasons like avoiding noise issues like the current Sydney airport.
simstrain
If you think that was a bargain then I have a big bridge on Sydney Harbour for sale. Look the land for Badgerys Creek was resumed by the Commonwealth Government yonks ago. I knew a solicitor down at the Government Solicitors Office years ago who was transferring every piece of property over to the Commonwealth.

Why this particular piece of property was not resumed is a mystery to me. Maybe it was outside the airport zone, who knows. However, in the area it is situated it would not be useful for anything else and not future value as industrial land which is the basis on what it was valued.

I reckon the valuation of under $1M was probably right on the money. One of the valuers involved was quite forceful in his view that the outrageous amount finally paid could not be justified.

When it comes to Crown resumptions, reasonable value must be paid, not what you think you should get for it.
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
If you think that was a bargain then I have a big bridge on Sydney Harbour for sale. Look the land for Badgerys Creek was resumed by the Commonwealth Government yonks ago. I knew a solicitor down at the Government Solicitors Office years ago who was transferring every piece of property over to the Commonwealth.

Why this particular piece of property was not resumed is a mystery to me. Maybe it was outside the airport zone, who knows. However, in the area it is situated it would not be useful for anything else and not future value as industrial land which is the basis on what it was valued.

I reckon the valuation of under $1M was probably right on the money. One of the valuers involved was quite forceful in his view that the outrageous amount finally paid could not be justified.

When it comes to Crown resumptions, reasonable value must be paid, not what you think you should get for it.
nswtrains
We can just be thankful it has overall gone much more smoothly than the Mary Valley Dam project where there was divorces, suicides and many other real and claims outcomes. The govt paid good money for those properties, a few court cases for those who didn't want to sell and then the whole project was cancelled and properties offered back, others already having moved on.

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