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Final Report 2016

Contract Area Albury

Contract No 4701772

LGA Albury City

Prepared For Property NSW

Base Date 1 July 2016

Version 1.3 Prepared Under Rating & Taxing

Procedure Manual 7.0

Final Report Albury City 2016

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Executive Summary

LGA Overview

The Albury City Local Government Area (LGA) is located in the Eastern

Riverina Region, 300 kilometres from Melbourne and 560 kilometres from

Sydney. Albury has a population of over 50,000 and services a regional

population of 105,000 with a land area comprising 30,618 hectares.

Albury comprises mostly level and gentle sloping topography, green

timbered hills and river flats. The urban area is surrounded by Nail Can Hill

to the west, Black Range to the north, Eastern Hill to the east and the Murray

River/Victorian NSW border to the south. In addition the suburb of

Thurgoona which comprises Albury’s primary residential growth corridor is

situated to the north east of the CBD.

Number of Properties Valued this Year and the Total Land

Value in Dollars

Albury City comprises residential, rural, business industrial, special purpose,

recreation, environmental and waterways zones.

22,164 properties were valued at the Base Date of 1 July 2016, and

valuations are reflective of the property market at that time. Previous Notices

of Valuation were issued to owners for the Base Date of 1 July 2014.

The Albury City property market has generally seen an increase in values

over the past twelve months and since the previous local government

valuation in 2014.

Valuation changes in the LGA and percentage changes between the Council

Valuation year of 1 July 2014 and the Land Tax Valuation year of 2015 are

as follows:


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Albury City Properties Valued and Total Land Value

Zone Zone Number of

Entries

2016 Total

Land Value

Prior Land

Value (2015) % Change

Prior LGA

Valuation

(2014)

% Change

Commercial

B1 6 $1,639,771 $1,515,500 8.200% $,1,515,500 8.200%

B2 17 $11,222,620 $10,344,000 8.494% $10,344,000 8.494%

B3 314 $245,248,048 $219,775,100 11.590% $219,775,110 11.590%

B4 739 $295,612,559 $269,861,610 9.542% $269,539,310 9.673%

B5 4 $1,580,845 $1,457,000 8.500% $1,457,000 8.500%

B6 4 $9,958,644 $7,850,000 26.862% $7,850,000 26.862%

B7 8 $1,201,290 $1,090,100 10.200% $1,080,100 10.200%

Environmental

E2 52 $5,633,070 $5,633,070 0.000% $6,456,020 -12.747%

E3 185 $35,889,540 $35,484,340 1.142% $35,433,980 1.286%

E4 63 $23,242,096 $23,128,000 0.493% $23,002,000 1.044%

Industrial IN1 425 $127,401,978 $120,073,610 6.103% $120,416,210 5.801%

IN2 188 $41,063,277 $40,811,820 0.616% $40,844,820 0.535%

Residential

R1 18,261 $2,474,084,862 $2,348,309,430 5.356% $2,252,880,250 9.819%

R2 361 $81,178,731 $72,152,300 12.510% $72,803,300 11.504%

R3 485 $68,007,340 $62,566,400 8.696% $62,535,200 8.750%

R5 278 $71,948,658 $66,838,440 7.646% $62,038,180 15.975%


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Albury City Properties Valued and Total Land Value

Zone Zone Number of

Entries

2016 Total

Land Value

Prior Land

Value (2015) % Change

Prior LGA

Valuation

(2014)

% Change

Recreational RE1 117 $26,487,058 $25,616,110 3.400% $25,616,110 3.400%

RE2 12 $12,249,361 $12,140,100 0.900% $12,137,100 0.925%

Rural

RU1 57 $27,393,618 $24,926,200 9.899% $21,818,800 25.551%

RU2 89 $39,337,434 $35,724,630 10.113% $32,824,630 19.841%

RU4 308 $103,965,298 $89,264,180 16.469% $87,895,280 18.283%

Village RU5 68 $10,297,459 $8,753,070 17.644% $8,692,070 18.470%

Infrastructure SP2 122 $42,266,802 $40,931,350 3.263% $41,172,150 2.659%

Recreational

Waterways W2 1 $305,000 $305,000 0.000% $288,000 5.903%

Total 22,164 $3,757,215,359 $3,524,551,360 6.601% $338,790,249 9.911%


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State and Local Government Legislation for LGA

Albury City is governed by the Albury Local Environmental Plan (LEP) 2010,

gazetted on 13 August 2010. This plan is based on the standardised LEP

prescribed by the NSW Legislation.

There have been seven amendments made to the LEP since the previous

valuation.

Table of Amendments

Year Amendment

Reference Description of Amendment

2015

(489) Albury Local Environmental Plan 2010 (Amendment No 17).

LW 28.8.2015.Date of commencement, on publication on

LW, cl 2.


LW 27.11.2015. Date of commencement, on publication on

LW, cl 2.

2016

(43) Standard Instrument (Local Environmental Plans)

Amendment (Maps) Order 2016. LW 27.1.2016. Date of

commencement, 27.1.2016, cl 2.



LW, cl 2.


Amendment Order 2016. LW 11.3.2016. Date of

commencement, on publication on LW, cl 2.


Amendments (Observatory and Defence Facility) Order

2016. LW 10.6.2016. Date of commencement, 56 days after

publication on LW, cl 2.



LW, cl 2.


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Albury City also has development controls in place that affect the subdivision

and erection of dwellings which impacts land values, including the Albury

Development Control Plan 2010.

Market Overview and Sales of Particular Interest

Aspect has undertaken significant analysis of the Albury City property market

to provide an accurate and reliable basis of valuation. A total of 551 sales

were analysed, enabling the establishment and verification of land values as

at 1 July 2016. These analysed sales also support the grading across

different locations. Analysed sales reports are provided to Property NSW on

a consistent basis throughout the year. The added value of improvements

are also analysed to enable the accurate deduction of land values. Aspect

undertakes this process using the paired sales approach and the

replacement cost approach.

In analysing sales before or after 1 July it is necessary to adjust the contract

price in terms of market movement. Aspect Property Consultants analysed

551 sales to the current base date, this includes particular attention to recent

re-sales over properties which supported land value changes.

In Albury City this year sales of specific interest included the sale of a

residential englobo parcel located on the western side of Kerr Road

comprising 12.48 hectares with a sale price of $3,850,000.

The former Kimberly Clarke Australia Drome Street manufacturing site was

purchased by Bunnings Australia Pty Ltd for $4,575,000. The site comprising

4.54 hectares will be cleared to make way for a Bunning’s retail and trade

complex.

A large englobo industrial parcel comprising 37.686 hectares was purchased

for $2,721,781. The parcel located on the northern side of Ceres Drive within

the Airside North Industrial Estate was formally an Albury-Wodonga

Corporation (AWC) and sold by the Commonwealth of Australia.


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A prominent single level commercial office complex located in the corner of

Swift and Olive streets comprising a gross building area of some 734 square

metres was sold for $2,070,000.

There has also been a number of prestige residential and rural residential

property sales in the last 12 months in the Albury District. Including but not

limited to:

109 Doctors Point Road, East Albury - 50.74 hectares sold for

$3,000,000 (improved)

635 Olive Street, Albury - 2,322 square metres sold for $1,300,000

(improved)

25 Maryland Way, Albury – 500.20 square metres sold for $330,000

(vacant)

508 Wilson Street, Albury – 628.10 square metres sold for $450,000

(vacant)


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Significant Issues and Developments

The main significant issues and developments in the Albury City LGA for the

period are:

The Albury region continues to achieve sound population growth and this is

expected to continue. Albury is considered a robust economy in general

terms and the turnover and sale of newly offered residential land in particular

within the Thurgoona growth corridor together with the health of the local

building industry is testament to this.

Following the successful opening of the $10.5M Murray Art Museum

(MAMA) in September 2015 ongoing development has continued in the

QEII Square precinct during 2016. A dedicated youth space and café

has been created at the rear of the Library Museum comprising some

343 square metres and will house the relocated Retro Youth Café. The

redevelopment of the QEII precinct underpins Albury City’s focus of

creating a cultural precinct and vibrant social hub within the CBD.

The new Albury Wodonga Regional Cancer Centre in Borella Road,

East Albury is expected to be officially opened in November with

services already commenced. The $65M facility constructed adjacent to

Albury Base Hospital includes a day oncology unit for chemotherapy

treatment, three radio therapy bunkers for the provision of radiation

therapy, a 30 bed inpatient ward, a “wellness centre”, dedicated

children’s treatment space, 17 consulting rooms and a pharmacy.

Regional cancer patients will no longer need to travel to Melbourne for

specialist treatment and family will also have the option to utilise the

nearby Hilltop Patient and Carer Accommodation Centre.

Following the sale of the former Kimberly-Clark Australia Pty Ltd

manufacturing site in Drome Street to Bunnings Properties Pty Ltd,

Bunnings plan to construct a $27M mega-store incorporating both retail

and trade operations. The new complex reportedly will be in excess of

18,000 square metres with provision for 400 car parks.


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The construction of the new motel adjacent the Albury Tax office is

expected to proceed with the recent announcement by the Mantra

Group confirming their commitment to proceed with the 158 room $30M

complex. Work is expected to start late 2016 with completion in 2018.

The property is to know as the Mantra Hotel Albury.

The Nexus Industrial Hub and the Ettamogah freight rail interchange

remains a focal point for industrial expansion to meet the needs of an

growing city into the future.

To the south of Albury City, the City of Wodonga, in Victoria, has some

major retail developments currently underway with the redevelopment

of its commercial core following the relocation of the Sydney –

Melbourne Railway Line. The new commercial precinct is known as

Junction Place. The redevelopment of this area will include many new

opportunities for retailers and includes the construction of a new

shopping centre to be known as Mann in addition to a new Safeway

supermarket and specialty shops currently under construction. This

detail has been noted due to the competition this may place on Albury

retail in the coming years as currently a large sum of expendable

income from Wodonga is spent on consumables in respect to Albury

and Lavington retail.

Please see related section in the body of the report for the full list of

significant issues and developments.


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Significant Value Changes

Summary of Valuation Changes to Residential Land

Changes since Previous General Valuation Year 2014

There has been an overall slight increase in land values for General

Residential (R1) and Medium Density (R3) zoned properties and a moderate

increase in values for Low Density Residential (R2) zoned properties within

the City of Albury.

Increased buyer activity has occurred in respect to Large Lot (R5) residential

properties with a moderate increase in land values reflected in a 15.98%

adjustment since the previous General Valuation Year 2014.

Changes since Previous Valuation Year 2015

There has been an overall slight increase in land values for General

Residential (R1) and Medium Density (R3) zoned properties and a moderate

increase in values for Low Density Residential (R2) zoned properties within

the City of Albury.

Demand for Large Lot (R5) residential properties has remained firm with a

slight increase in land values of 7.65% since the previous Valuation year of

2015


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Summary of Valuation Changes to Rural Land


Rural properties within the Primary Production (RU1) zone are tightly held

within Albury City LGA. There has been a strong increase in land values

since the previous General Valuation Year of 2014 of 25.55%. Given the

districts reliable rainfall, favorable soil types, strengthening commodity prices

in addition to proximity to Albury CBD underpins the strength of this style of

property in the market place.


Rural properties within the Primary Production (RU1) zone are tightly held

within Albury City LGA. There has been a slight increase in values since the

previous Valuation Year of 2015 of 9.9%. Given the districts reliable rainfall,

favorable soil types, strengthening commodity prices in addition to proximity

to Albury CBD underpins the strength of this style of property in the market

place.


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Summary of Valuation Changes to Commercial Land


Neighbourhood Centre (B1) zone properties have experienced a slight

increase in land values since the previous General Valuation Year of 2014.

Local Centre (B2) zone properties have shown a slight increase in land

values supported by it’s accessibility to the medical precinct incorporating

Albury Base Hospital and the Regional Cancer Centre and growing passing

traffic movement servicing Thurgoona to the east. The Local Centre (B2)

zone properties within Thurgoona are strategically located servicing the

Thurgoona growth corridor.

Commercial Core (B3) zone properties have shown a moderate increase in

values. Properties within this component are generally tightly held and

keenly sought after by the investor sector. Recent developments including

the continued development of the Volt Lane precinct, upgrading of Kiewa

Street and the redevelopment of the cultural, QEII precinct with the opening

of MAMA and relocation of the Retro Youth Café continue to underpin the

market. The recent announcement of the new Mantra Hotel, Albury to be

constructed adjacent to the Tax Office, along with the recent upgrade to the

Atura Hotel and the new Quest Hotel in the former old wool store, confirms

the commitment of companies confident in the current strength of the Albury

City economy and future growth potential.

Commercial Core (B3) zone property values within Lavington have been

notably supported by the Northpoint Tower complex developed by Zauner

Construction in recent years, the completion of the ambulance station and

the completed redevelopment of the former Wow complex by Aldi

Supermarket.

With respect to Mixed Use (B4) zoned properties, land values have

experienced a slight increase, related to their proximity to the improved

amenity of the CBDs of Albury and Lavington. Of particular note in respect to


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Lavington B4 zone properties is their proximity and accessibility to a growing

Thurgoona residential market.

Business development (B5) Zone comprises a small number of commercial

properties with frontage to Mate Street. There has been a slight increase in

values since the previous General Valuation Year of 2014.

Enterprise Corridor (B6) zone comprises a small number of properties

located in East Albury. There has been a strong increase in land values

since the previous General Valuation year of 2014. This precinct includes the

new McDonalds complex on the corner of Borella Road and Drome Street

and adjacent the proposed new Bunnings Complex on the eastern side of

Drome Street. This commercial precinct is well positioned within the City of

Albury to not only service the needs of central Albury but also Thurgoona in

addition to being easily accessible for Wodonga residents via the Hume

Highway diamond interchange at Borella Road.

Business Park (B7) zone properties have experienced a slight increase in

values since the previous General Valuation Year of 2014. The Business

Park located on the northern residential fringe of Albury is readily accessible

via Wagga Road and in close proximity to the Ettamogah Rail Hub.


Neighbourhood Centre (B1) zone properties have experienced a slight

increase in values since the previous General Valuation Year of 2015.

Local Centre (B2) zone properties have shown a slight increase in values

supported by it accessibility to the medical precinct incorporating Albury

Base Hospital and the Regional Cancer Centre and growing passing traffic

movement servicing Thurgoona to the east. The Local Centre (B2) zone

properties within Thurgoona are strategically located servicing the

Thurgoona growth corridor.


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Commercial Core (B3) zone properties have shown a moderate increase in

values. Properties within this component are generally tightly held and

keenly sought after by the investor sector. Recent developments including

the continued development of the Volt Lane precinct, upgrading of Kiewa

Street and the redevelopment of the cultural, QEII precinct with the opening

of MAMA and relocation of the Retro Youth Café continue to underpin the

market. The recent announcement of the new Mantra Hotel, Albury to be

constructed adjacent to the Tax Office together along with the recent

upgrade to the Atura Hotel and the new Quest Hotel in the former old wool

store confirms the commitment of companies confident in the current

strength of the Albury City economy and future growth potential.

Commercial Core (B3) zone property values within Lavington have been

notably supported by the Northpoint Tower complex developed by Zauner

Construction in recent years, the completion of the ambulance station and

the completed redevelopment of the former Wow complex by Aldi

Supermarket.

With respect to Mixed Use (B4) zoned properties the values have

experienced a slight increase in values supported by their proximity to the

improved amenity of the CBD’s of Albury and Lavington. Of particular note in

respect to Lavington B4 zone properties is their proximity and accessibility to

a growing Thurgoona residential market.

Business development (B5) Zone comprises a small number of commercial

properties with frontage to Mate Street. There has been a slight increase in

values since the previous General Valuation Year of 2015.

Enterprise Corridor (B6) zone comprises a small number of properties

located in East Albury. There has been a strong increase in values since the

previous Valuation year of 2015. This precinct includes the new McDonalds

complex on the corner of Borella Road and Drome Street and adjacent the

proposed new Bunning’s Complex on the eastern side of Drome Street. This

commercial precinct is well positioned within the City of Albury to not only


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service the needs of central Albury but also Thurgoona in addition to being

easily accessible for Wodonga residents via the Hume Highway diamond

interchange at Borella Road.

Business Park (B7) zone properties have experienced a slight increase in

values since the previous Valuation Year of 2015. The Business Park

located on the northern residential fringe of Albury is readily accessible via

Wagga Road and in close proximity to the Ettamogah Rail Hub.


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Summary of Valuation Changes to Industrial Land


General Industrial (IN1) zoned properties have experienced a slight increase

in values whilst the Light Industrial (IN2) zoned property values have

remained steady since the previous General Valuation Year 2014.


General Industrial (IN1) zoned properties have experienced a slight increase

in values of 6.1% whilst Light Industrial (IN2) zoned property values have

remained steady. Overall sales activity has shown a positive trend with

recent sales of a large englobo parcel and smaller industrial parcels within

Airside North Industrial Estate. Well located Airport Park continues to

perform well with recent vacant land sales on Heron Court with runway

access selling strongly.


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Contents

Executive Summary ............................................................................................... 2

State and Local Government Legislation for LGA .......................................... 5

Market Overview and Sales of Particular Interest .......................................... 6

Significant Issues and Developments ............................................................ 8

Significant Value Changes ........................................................................... 10

Contents ............................................................................................................... 17

Disclaimer – Purpose of this Report ..................................................................... 18

LGA Overview ...................................................................................................... 19

State and Local Government Legislation for the LGA .......................................... 24

Market Overview & Sales of Particular Interest .................................................... 27

Significant Issues and Developments .................................................................. 29

Significant Value Changes ................................................................................... 31

Overview of the Quality Assurance Process ........................................................ 33

Author .................................................................................................................. 33


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Disclaimer – Purpose of this Report

The purpose of this report is to describe the process and considerations for

the 1 July 2016 Valuation of the Albury City LGA The report has been

produced on behalf of the Valuer General.

The land values have been specifically made for rating and taxing purposes.

Land values produced as part of this process should not be used for any

other purposes without the specific agreement of the Valuer General.

Land values must have regard to specific requirements and assumptions in

rating and taxing legislation. Consequently these valuations may vary from

market levels.

The land values have been determined using a methodology prescribed by

the Rating and Taxing Valuation Procedures Manual. The manual allows

mass valuation methodologies that involve assessing large numbers of

properties as a group to be utilised where appropriate. Mass valuation

methodologies are by their nature likely to be less accurate than individually

assessed valuations, however are utilised worldwide for rating and taxing

purposes to deliver valuations within an acceptable market range.

Town planning, land use and other market information contained in this

report has been compiled based on enquiries undertaken during the

valuation process. Third parties should make their own inquiries into these

details and should not rely on the contents of this report.

The Valuer General disclaims any liability to any person who acts or omits to

act on the basis of the information contained in this report.

More information on the valuation process is available from the Valuer

General’s website at www.valuergeneral.nsw.gov.au

Liability limited by a scheme approved under Professional Standards

Legislation.

http://www.valuergeneral.nsw.gov.au/


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LGA Overview

Location of the District

Strategically positioned on the New South Wales and Victorian Border, on

the banks of the Murray River, Albury City has a population of around 50,500

and is the major urban centre of the Albury Wodonga region, servicing a

regional population of around 105,000.

Albury City is considered as one of the nation’s great regional inland cities

offering a vibrant cosmopolitan feel that reflects a unique multicultural

heritage.


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Being located between Sydney and Melbourne on Australia's busiest inland

transport corridor, Albury is a strategic hub for commerce, retail, transport,

health and education. The city has achieved national and international

recognition as a centre for government administration, defense,

manufacturing, agricultural support services, sport, festivals and the arts.

Note: The above information has been sourced from the Albury City Council Website.

Principal Towns

Albury

The City of Albury comprises several urban areas together with outlying rural

residential fringe areas; however the main CBD area of Albury is the core

commercial area. The population of Albury City is around 50,500 and offers

a wide range of retail goods, services and businesses typical of a regional

centre of this magnitude. Further, the city offers public and private hospital

services together with several specialist medical centres, a number of public

and private schools of a high calibre, child care centres and Charles Sturt

University and the Riverina Institute of TAFE.

Albury City is highly considered for its tourism with the Murray River and

Lake Hume forming portions of the city boundaries and the town centre itself

with many historic buildings, the new state of the art Murray Art Museum

Albury, the Botanic Gardens, the attraction for shoppers with a large retail

centre and additional attractions nearby such as the Victorian Snowfields,

the historic town of Beechworth and the Rutherglen Wine Region.


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Main Industries

Albury is located on the Hume Highway and the Great Southern Railway

Line, the main transport links for industry between Sydney and Melbourne.

The surrounding rural areas and smaller shire districts supports the local

industry with agriculture underpinning many of the local businesses. Albury

has a number of varied types of industry and provides the base for

businesses including although not limited to: Norske Skog, Milspec, DTD

Engineering, The Border Mail, Geofabrics, Mountain H2O, The Riverina

Dairy Pty Ltd, Apex Tool Group, Macfab Engineering, Overall Forge and the

Australian Tax Office.

The neighbouring city of Wodonga also has significant industries making its

home there, which assists Albury in boosting the overall available population

base.

Significant Retail Centres

The retail hub of Albury City is located in the Albury CBD with two major mall

type complexes and numerous specialty stores and supermarkets located

along and near to Dean Street. In particular, the Myer Centrepoint Shopping

Centre (Myer and Woolworths are anchor tenants) and West End Centro

(with Kmart and Coles as anchor tenants) are the two major retail centres,

however the newly refurbished Mates Building and City Walk Arcade are well

situated along the ‘ant track’ of Albury. In addition, there are the large

warehouse style buildings that occupy Dan Murphy’s Liquor, First Choice

Liquor, Aldi Supermarket, Rebel Sports, Bunnings Warehouse, SuperCheap

Auto, Autobarn, Ishka, Adairs and many other retail offerings in smaller

premises.

There are two additional shopping centres of note in outlying areas with

Lavington having a core commercial precinct which includes the Centro


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Lavington Square housing a Big W and Woolworths as anchor tenants.

Lavington also has an Aldi Supermarket and a small retail shopping strip

with several specialty style stores and takeaway premises. The other

shopping centre of note is the Thurgoona Plaza consisting of a modern

complex comprising a large Woolworths and several smaller retailers

including a bakery, butcher, newsagent, Hume Bank, restaurants,

takeaway’s, chemist, hairdresser, gymnasium and real estate agent.

Types of Residential Development

Albury offers a range of residential properties, comprising predominantly

single detached dwellings but also offers low density type properties,

numerous strata style units and villas, with neighbourhood and community

type schemes becoming increasingly common.

We note the below statistics, reproduced by the Albury Development Monitor

2015-16, as published on the Albury City Council website;

459 Vacant residential lots across the city. 45% of these vacant lots are

located in Thurgoona and a further 18% in Springdale Heights and 9%

in Glenroy and Hamilton Valley respectively.

286 new vacant lots produced in the city.

50% of vacant lots produced in the city were in Thurgoona.

361 vacant lots were consumed in the city – 15% increase compared to

313 lots consumed in 2014/2015.

62% of vacant lots consumed were located in Thurgoona.

193 Dwellings were created as a dual occupancy or multi dwelling

housing development – 45% increase compared to 2014/2015.

563 New dwellings were created in the city – 21% increase compared

to 2014/2015.

44 new Community Title and Strata Title Subdivision lots were created

– 48% decrease compared to 2014/2015.


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$162 million invested in residential construction – 12% increase on

2014/2015.

$833 million invested in construction in the past 5 years.

The average sale price of vacant lots of $146,044 – 8.5% increase.


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State and Local Government Legislation for the LGA

Albury City planning is governed by the Albury Local Environmental Plan

(LEP) 2010, gazetted on 13 August 2010. This plan is based on the

standardised LEP prescribed by the NSW Legislation.

There have been seven amendments made to the LEP since the previous

valuation.

Table of Amendments

Year Amendment

Reference Description of Amendment

2015


LW 28.8.2015.Date of commencement, on publication on

LW, cl 2.



LW, cl 2.

2016


Amendment (Maps) Order 2016. LW 27.1.2016. Date of

commencement, 27.1.2016, cl 2.



LW, cl 2.


Amendment Order 2016. LW 11.3.2016. Date of

commencement, on publication on LW, cl 2.


Amendments (Observatory and Defence Facility) Order

2016. LW 10.6.2016. Date of commencement, 56 days after

publication on LW, cl 2.



LW, cl 2.


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The aims of the Albury LEP 2010 are as follows:

to make local environmental planning provisions for land in Albury in

accordance with the relevant standard environmental planning

instrument under section 33A of the Act.

In particular,

a) to give effect to the desired outcomes, principles and actions

contained in the Council’s adopted strategies and policy

documents, and

b) to promote sustainable urban development by providing for

efficient management of urban growth and resource utilisation,

and

c) to promote a city for the people, with a high level of social and

physical amenity and a diversity of activities and uses, and

d) to maintain or improve biodiversity across Albury, and to avoid

significant impacts on matters of environmental significance.


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Albury City Council has development controls including the Albury City

Development Control Plan 2010 that affects the subdivision and erection of

dwellings which impacts on land values. These include:

Albury City Council DCP – Minimum Allotment Sizes

Zone Category Zone Min. Allotment Size

Rural RU1, RU2 100ha

RU4 40ha and 80ha

Village RU5 4,000m2

Residential

R1 300m2 and 450m2

R2 1,500m2, 2,000m2 and

4,000m2

R3 450m2

R5 1ha, 2ha and 10ha

Commercial B1 100m2

B4 300m2

Environmental

E2 300ha

E3 100ha

E4 5,000m2


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Market Overview & Sales of Particular Interest

Residential

Residential land values within Albury City have generally seen a slight

increase with particular strengthening the inner city market in addition to

strong interest in the expanding satellite suburb of Thurgoona which

strategically forms Albury's residential growth corridor.

Englobo sites are being sold readily including a 12.48 hectare parcel

purchased for $3,850,000 located at 56 Chisholm Lane off Kerr Road,

Thurgoona. A development application has been approved for an 8 stage,

134 lot subdivision. The initial stage 1 will be for 26 residential allotments.

Commercial

The Albury City commercial market remains strong with properties keenly

sought by prudent property investors when presented to the market. Albury

City and the region in general is regarded as a major progressive regional

center and has drawn significant attention from local, regional and

international investors.

The continued revitalisation of Albury CBD with the significant

redevelopment of the Cultural QEII precinct, the completed upgrade of

Kiewa Street, the expansion of the Mates Building and additional retail space

on the ground level of the Volt Lane (ATO precinct) project maintains a

vibrant retail and entertainment core within the City. Lavington commercial

precinct has been positively impacted with a number of recent developments

including the completion of the Zauner Tower project, the completion of the

modern ambulance station and the recently opened Aldi supermarket on

Wagga Road together with the beautification upgrade of Wagga Road.

Lavington remains well placed to service the increasing commercial

requirements of both Lavington and Thurgoona.


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Sales of particular interest include:

520 Smollett Street, Albury – (Multi level office complex) Australian Tax

Office complex, previously sold in 26/09/2012 for $49,081,863 recently

resold on the 06/10/2015 for $64,800,000. The property was purchased

by a Korean based company – FG Asset Management.

613 Dean Street, Albury – (Office/retail) Westpac Bank, sold at auction

on the 12/08/2016 for $2,542,000 on a net yield of 6.45%.

474 Dean Street, Albury – (Retail shops) “Cobans Buildings”, sold at

auction 30/10/2015 for $1,515,000 on a net yield of 7.7%.

508 Swift Street, Albury – (Single level office complex) sold on the

13/05/2016 for $2,070,000 on a net yield of 5.9%.

Industrial

The Albury City industrial market has been challenged in recent times with

the exit off shore of major employers Drivetrain Systems International and

Kimberley Clarke. On a positive note since the previous Valuation Year 2015

overall there has been a slight increase in the General Industrial (IN1) zone

segment of the market.

Sales of particular interest include:

708 Drome Street, East Albury – (Former Kimberley-Clarke

manufacturing complex) comprising 4.540 hectares sold on the

11/05/2016 for $4,575,000. The buildings are to be demolished to make

way for a new Bunnings retail and trade complex.

Ceres Drive, Thurgoona – 37.686 hectare englobo industrial parcel sold

on the 12/02/2016 for $2,721,782.


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Significant Issues and Developments

Significant Developments – From Prior Local Government Council

Rating Valuation in 2014

Below is a summary of significant Development Applications. Most of these

Development Applications are for developments permissible within the

current zoning therefore no special consideration is required.

Following the successful opening of the $10.5M Murray Art Museum

(MAMA) in September 2015 ongoing development has continued in the

QEII Square precinct during 2016. A dedicated youth space and café

has been created at the rear of the Library/Museum comprising some

343 square metres and will house the relocated Retro Youth Café. The

redevelopment of the QEII precinct underpins the Albury City’s focus of

creating a cultural precinct and vibrant social hub within the CBD.

The new Albury Wodonga Regional Cancer Centre in Borella Road,

Albury is expected to be officially opened in November with services

already commenced. The $65M facility constructed adjacent to Albury

Base Hospital includes a day oncology unit for chemotherapy

treatment, three radio therapy bunkers for the provision of radiation

therapy, a 30 bed inpatient ward, a “wellness centre”, dedicated

children’s treatment space, 17 consulting rooms and a pharmacy.

Regional cancer patients will no longer need to travel to Melbourne for

specialist treatment and family will also have the option to utilise the

nearby Hilltop Patient and Carer Accommodation Centre.

Following the sale of the former Kimberly-Clark Australia Pty Ltd

manufacturing site in Drome Street to Bunnings Properties Pty Ltd,

Bunnings plan to construct a $27M mega-store incorporating both retail

and trade operations. The new complex reportedly will be in excess of

18,000 square metres with provision for 400 car parks.

The construction of the new motel adjacent the Albury Tax office is

expected to proceed with the recent announcement by the Mantra


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Group confirming their commitment to proceed with the 158 room $30M

complex. Work is expected to start late 2016 with completion in 2018.

The property is to know as the Mantra Hotel Albury.

The Nexus Industrial Hub adjacent to the Ettamogah freight rail

interchange remains a focal point for industrial expansion to meet the

needs of a growing city into the future. The recent recommendation by

councils engineering and works committee to accept a $3.6 million

tender for stage one works will include construction of internal roads,

storm water drainage, sewer and water reticulation, telecommunication

conduits and a roundabout.


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Significant Value Changes

Significant Value Changes – From Prior Local Government Council

Rating Valuation 2014

Since the prior Local Government Rating Valuation 2014 as a whole saw an

increase of 6.6%. There were five (8) zones that experienced either

moderate to strong increases in value from 11.50% to 25.55%

Zones which saw significant increases were:

Commercial Core (B3) – Overall 11.59%. This zone incorporates

Commercial Core Albury, Lavington and Secondary Central Albury

comprising generally tightly held commercial properties keenly sought

by the investor/owner occupier market including interest from outside

investors becoming increasingly aware of the strengths of this region.

Enterprise Corridor (B6) – Overall 26.86%. This zone incorporates

Enterprise Corridor, East Albury and includes the new McDonalds

complex adjacent to the proposed new Bunning’s retail and trade

centre. Strategically located with the Harvey Norman complex and

other large format retail operators in this precinct positioned to service

Albury, Thurgoona growth corridor and Wodonga via Hume

Highway/Borella Road interchange.

Low Density Residential (R2) – Overall 11.50%. This zone

incorporates Low Density Residential, Ettamogah, Albury and

Thurgoona Park. There has generally been a slight increase in values

for properties located on Lavington’s north eastern residential fringe

and Ettamogah and a moderate increase in values for those properties

located at Thurgoona Park. The Thurgoona market continues to

perform well as a lifestyle precinct given the choice of primary and

secondary schooling available in addition to Charles Sturt University

and supermarket and lifestyle amenity.


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Large Lot Residential (R5) – Overall 15.98%. This zone incorporates

Large Lot Residential, Tabletop, Wirlinga and Hamilton Valley

highlighting increased demand for rural residential style properties

within easy commuting access to the facilities and amenity of the CBD

of Albury and Lavington.

Primary Production (RU1) - Overall 25.55%. This zone incorporates all

Primary Production properties within Albury City. Given the districts

reliable rainfall, favourable soil types, strengthening commodity prices

in addition to proximity to Albury’s CBD underpins the strength of this

style of property.

Rural Landscape (RU2) – Overall 19.84%. This zone incorporates

Rural Landscape and River Flats highly sought after for existing rural

lifestyle, recreation and grazing.

Rural Small Holdings (RU4) – Overall 18.28%. This zone incorporates

small rural holding within the Table Top and Splinters Creek precincts

providing a rural lifestyle experience whilst being within easy

commuting access to the facilities and amenity of the CBD of Albury

and Lavington.

Village (RU5) – Overall 18.47%. The zone incorporates the villages of

Ettamogah and Lake Hume. A significant adjustment in value

particularly within the village of Ettamogah where there has been

strong demand for larger residential and lifestyle allotments.

Significant Value Changes – From Prior to Current Annual Valuation

As Identified above.


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Overview of the Quality Assurance Process

Property NSW has been provided with a detailed Valuation Analysis Report,

which details the Quality Assurance Process of Aspect Property Consultants

and outlines the Verification process and certifies that Land Values meet all

Statistical Measures and Component Data Analysis. In addition, a Quality

Statement and lists of high value and high risk properties is also provided in

the Valuation Analysis Report. Checks have been undertaken to ensure that

all properties have been valued, land values are consistent with each other,

land value bases have been correctly determined and all concessions and

allowances have been supplied. Additionally, properties that had land values

amended through the objection or reascertainment process were individually

examined to reconcile surrounding land values and ensure accuracy of the

grading of surrounding land values. Benchmarks and Reference

Benchmarks are core elements of the quality assurance processes and are

identified and individually valued in accordance with the Rating and Taxing

Procedures Manual Version 7.0. Worksheets have been maintained on all

properties where calculations are required. We have also ensured that

adjustments and assumptions within the market analysis have been based

on market evidence and have been fully documented and rationalised.

Author

Report Prepared by:

Christopher C. Attenborough Registered Valuer 4012 FAPI, CPV B.Com (Land Economy) Contract Services Manager Aspect Property Consultants

Final Report 2016 - valuergeneral.nsw.gov.au€¦ · children’s treatment space, 17 consulting...

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