The rural land deal in which the ACT government paid $3 million above a valuation represented "excellent value for money", according to a senior treasury official.
ACT deputy under treasurer Stephen Miners made the comments during the final day of public hearings at the Assembly inquiry into the now-defunct Land Development Agency's controversial buy up of land on Canberra's western fringe.
One of nine deals being scrutinised is the purchase of a property known as "Milapuru" for $7 million in July 2015.
The amount paid was $3 million higher than an independent valuation for the 290 hectare property, with the deal resulting in a $3.3 million loss for the agency in the 2015-16 financial year.
In the scathing audit report which triggered the inquiry, then Auditor-General Maxine Cooper found the Milapuru deal failed to meet a number of tests in the agency's own land acquisition policy, including that proposed purchase prices had to be consistent with "independent market valuations" and represent "value for money".
Chief Minister Andrew Barr, who also fronted Wednesday's hearings, has previously defended the deal, arguing the property would generate at least $100 million in revenue for the territory once it was eventually sold off for housing.
Mr Barr, as ACT Treasurer, approved the deal.
Under questioning from Labor committee member Tara Cheyne on Wednesday afternoon, Mr Miners said treasury officials had assessed the business case for the Milapuru deal and determined that it represented "excellent value for money".
That was based on the assumption that the property, which is west of Weston Creek, would be redeveloped as a housing estate.
Last week's public hearings heard evidence from former agency chief executive David Dawes, who defended the deals as necessary to shore up the ACT's future land supply.
In evidence which was largely corroborated at the hearing by his former deputy Dan Stewart, Mr Dawes said the agency had proceeded with buying rural land, despite the ACT government's apparent focus on urban infill.
There was a suggestion that Mr Barr's cabinet had not endorsed a key report outlining the agency's concerns that the ACT was running out of land.
Asked about those claims at Wednesday's hearing, Mr Barr said he did not "recall a red light [from cabinet or a cabinet sub-committee]" instructing the agency not to go ahead with the buy up.
As the ACT's former planning minister, Mr Barr said he understood the strategy and was "not surprised" when the individual deals came across his desk for approval.
Another key focus of the inquiry has been the circumstances surrounding the deal to acquire part of a property known as Fairvale in November 2015.
The Land Development Agency had intended to buy the whole property, but ultimately supported its subdivision so that Steven Flannery - who was working as a valuer for Fairvale's owner - could purchase part of the block.
The 2018 audit report found there was "no apparent reason or need" for the Land Development Agency to support the subdivision.
The agency could not provide evidence to justify why it did not proceed with buying the entire block, which represented a "probity risk", according to the audit report.
Mr Dawes last week defended the agency's handling of the Fairvale deal, saying it "bought what was on offer".
On Wednesday, the man previously in charge of the agency's greenfield sites, Tom Gordon, said the move to subdivide the land was the "desire" of Fairvale's previous owner, who clearly wanted to sell the block in two parts.
Committee member Vicki Dunne pressed Mr Gordon on whether the agency "ever discussed" buying the entire property.
Mr Gordon said a report prepared by Mr Stewart in early 2014 mentioned the "opportunity" of purchasing the entire block. The agency's board subsequently recommended approaching Fairvale's owners, Mr Gordon said.
"I think they were probably surprised that the owner had already decided to sell before anyone could talk to them anyway," Mr Gordon said.