Inner-south homeowners claim their properties are being acquired by the government for much less than market price

Owners whose houses are being acquired to make room for an intersection upgrade say the government’s offer is far too low, especially given the surging market.

Homeowners whose properties are being compulsorily acquired by the state government to make way for road upgrades say they have received lowball offers for their houses – one coming in at $130,000 less than a professional independent valuation.

The government says it has introduced new measures to help those affected by compulsory acquisitions, and property owners are able to negotiate prices.

However, residents say the offers made did not factor in significant property price increases experienced across Adelaide in the past year.

An elderly couple, whose Highgate home of six years is being razed to accommodate the $61 million upgrade of the Fullarton Rd and Cross Rd intersection, say they are being forced to move in with relatives because the money their received from the government was not enough to allow them to buy a like-for-like home.

The planned Fullarton / Cross road intersection upgrade will involve the acquisition of several properties.

The couple, who must vacate their doomed home by the middle of this month, said the government paid $130,000 less than what their own independent valuer said their property was worth.

The Advertiser has seen both the valuations provided by the government’s independent valuer and the couple’s independent valuer and can confirm a $130,000 difference in the prices.

The pair say they are not opposed to the intersection upgrade but are concerned homeowners are not being adequately compensated.

“The process is very unfair,” they said. “It has been terribly stressful for my wife.”

The couple, who have hired a lawyer to help them negotiate with the government, said they countered the transport department’s offer in March with a selling price in line with their own independent valuation. They said they are yet to receive a response.

“Just getting an answer out of them will be nice,” they said.

“It’s delay, delay, delay, and I think they do that purposely so that you get your back to the wall and you give up.”

Tania Daniell, 53, whose Fullarton Rd “forever home” was also acquired, said the process had been “traumatic”.

“We have no rights, no power, no voice, and we’re at the mercy of their valuer,” she said.

Ms Daniell said she also received substantially less than her own independent valuation suggested the property was worth.

“We cannot buy back into this area with what they’ve offered us,” she said.

Nouri Alwan owns the large white Spanish-style home on the corner of Fullarton and Cross roads and said the government’s offer was significantly less than his own independent valuer suggested.

Bilal Alwan, whose family owns the house on the corner of Fullarton and Cross roads, said the government’s offer was significantly less than an independent valuer’s. Picture: Keryn Stevens

“It isn’t a fair deal at all,” he said. “They don’t like to negotiate.”

Mr Alwan’s son Bilal said the compulsory acquisition process left property owners feeling helpless.

“The (government’s) valuer just came in and gave the whole neighbourhood low numbers,” he said.

“It’s absolute devastating how low the figures they came back with, and especially with the market rise in the last six months, they haven’t taken that into consideration.”

Alan, 68, who asked that his surname be withheld, said the government had informed him it was acquiring about 30sq m of land from the front of his Cross Rd property.

He is expecting to receive an offer from the government in the coming week.

Alan, who has lived in his home for about 30 years, said he had always planned to subdivide his land to create and sell three blocks. However, he said once the government had sliced off its 30 sqm, he will likely only be able to create two allotments, which would net about $300,000 less than if was able to create three allotments.

“My concern is that they’ll only compensate for us for the land they’re taking, not for the loss of value on the balance of the land, which is the bigger concern and the bigger amount of money,” he said.

Early works on the intersection upgrade are expected to begin in the coming weeks while major construction is due to start later this year. The upgrade is set to be completed by late-2022.

An artist impression of the Fullarton/Cross Rd intersection upgrade. Picture: SA Government

Transport Minister Corey Wingard said the government aimed to acquire as few properties as possible when undertaking infrastructure projects.

“Compulsory acquisition is always a difficult process and that’s why the Marshall Liberal Government introduced new laws to provide additional compensation, to 10 per cent of the market value (of the land, up to $50,000) for those affected,” he said.

This additional “solatium payment” aims to compensate affected owner-occupiers for the burden and emotional impact of having their homes taken.

The payment is up to 10 per cent of the land value, or $50,000, whichever is less.

A transport department spokesman said because of the private nature of compulsory acquisition discussions, the department did not comment publicly about individual cases.

“If a party is not in agreement with the department’s offer of compensation, they can obtain their own professional advice with reasonable costs covered by the Department,” he said.

He also said recent amendments to the Land Acquisition Act offered further provisions to help parties involved in compulsory acquisitions, including a valuer’s conference so valuers can meet to discuss a property, settlement conferences to find common ground, and the ‘solatium payment’.

There are currently about 450 properties set to be acquired by the government for road projects such as the final state of the North-South Corridor and the Fullarton and Cross roads intersection upgrade.

The number of property acquisitions associated with the Main South Rd duplication, the Victor Harbor Rd duplication to McLaren Vale, and the Hahndorf interchange and link road project were yet to be determined.