Understanding the Impact of Compulsory Acquisition on Market Value
The recent decision in Sydney Metro v G & J Drivas Pty Ltd [2024] 113 NSWCA 5 (Drivas) provides critical clarity on how compulsory acquisition affects the market valuation of land under the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) (Just Terms Act). This case focuses on whether the market value of land should include the value of a hypothetical development that was halted due to the prospect of acquisition. The ruling of the Court of Appeal, now upheld after the High Court declined special leave to appeal, reaffirms the principle of just compensation and sets clear limits for claims related to hypothetical development costs. [...]
