An independent valuer found the Curtin horse paddocks and a small area of lake bed at West Basin, which were swapped in a deal between the ACT government and the National Capital Authority, were both worth $4.9 million.
The ACT government gave up the near 32-hectare site for 2.8 hectares of land at West Basin, to allow for the redevelopment of the waterfront area where a $35 million project including a boardwalk and two new jetties is planned.
The valuation of the two sites was revealed in the National Capital Authority's annual report.
A spokeswoman for the authority said the most recent land valuation was completed by JLL Pty Ltd in 2018. "The value is based on contemporaneous sale prices of properties of similar size and use," she said.
The report said the authority did not recognise the financial value of land under lakes until it became apparent "future economic benefits will arise".
The inner-south site was rezoned last month to allow for redevelopment as a new diplomatic estate, despite strong community and political opposition. The Canberra Liberals had vowed in the ACT election campaign to preserve the paddocks, but it was unclear how this could be achieved.
Negotiations between the National Capital Authority and the ACT government took several years before the land swap was finalised, with the value of the two sites thought to be an important sticking point.
Federal Territories Minister Nola Marino signed off on the planning amendment, which the National Capital Authority said would provide enough land for new embassies for 25 years. It came after the federal budget earmarked $600,000 to plan for the new estate.
The National Capital Plan required new embassies to be built close to Parliament House in prestigious places, effectively limiting options to the tightly held inner-south.
The authority's chief planner, Andrew Smith, last year told a parliamentary inquiry countries that wanted to establish diplomatic missions in Australia were being turned away because there was not enough land.
"We are actually at a situation where we really can't effectively offer anything much," Mr Smith said.
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