The $8m Byron Bay estate that’s now worth $800,000

A block of land two minutes’ walk from the beach in Byron Bay has lost more than $5 million of its value after a court ruled it was little more than a grazing paddock, with limited potential for development.

The decision is a win for owner Hammock Investments, a company linked to 1970s TV power couple and Byron Bay locals Delvene Delaney and the late John “Strop” Cornell.

The 15-hectare property at Belongil Beach.Credit:

Hammock Investments sued the NSW Valuer General in the Land and Environment Court after receiving a land tax bill that put the value of the 15-hectare block at $5.9 million in 2021, and $8.3 million in 2022. When the company objected, the Valuer General reduced the 2022 value to $6 million but still ended up in court.

Expert valuer Robert Houldon told the court the block behind Belongil Beach would pose a “once-in-a-lifetime” opportunity if it were put up for sale, despite a flooding risk, and a buyer would not blink at a $6 million price tag.

“[They would say] ‘We’ll wear the risk because, you know what? This could be a $50 million – it could be a $40 million – site’.”

Paul Hogan, John “Strop” Cornell and Delvene Delaney starred in The Paul Hogan Show. Credit:

But the court found the land should have been valued at only $810,000 in 2021 and 2022 because the state government had not approved a critical council document that identified one hectare of the land for future housing.

The ruling means Hammock Investments should have to pay only $980 in land tax, rather than $87,500.

‘This could be a $50 million – it could be a $40 million – site.’

Valuer Robert Houlden

Cornell was the co-star and business partner of actor Paul Hogan and once owned the Beach Hotel in Byron Bay, before selling it for $44 million in 2007.

Delaney, Cornell’s widow, also starred on screen with “Strop” and Hogan, and is a director of Hammock Investments. The company is owned by two further companies linked to the Cornell family.

Hammock Investments bought the land for $200,000 in 1987. Byron council first flagged part of it for housing in its 2020 residential strategy, after more than 30 years of lobbying.

The land sits behind Belongil Beach, at Byron Bay.Credit:

That decision prompted the Valuer General to say the block was worth millions as the only greenfield site identified for development in Byron Bay, with a real prospect of rezoning within five to 10 years to deliver about 25 lots.

But the council’s strategy was never endorsed by the state Planning Department because it did not do enough to address housing targets.

The department conditionally approved the council’s second attempt at a strategy this year but excluded the Cornell land amid concern it was vulnerable to flooding and coastal hazards.

Hammock Investments said this was proof the land had never had a real prospect of being developed in 2021 and 2022, and its best use was as a grazing paddock with environmental offset.

Acting Commissioner Maureen Peatman mostly agreed, valuing the block at $810,000, including a $50,000 premium to reflect the possibility some land could be developed.

The Valuer General said it was considering the decision. Attempts to contact Hammock Investments were unsuccessful.

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