Final Report 2016€¦ · Prepared For Property NSW Base Date 1 July 2016 Version 1.1 Prepared...

Final Report 2016

Contract Area Orange

Contract No 4701773

LGA Cowra

Prepared For Property NSW

Base Date 1 July 2016

Version 1.1 Prepared Under Rating & Taxing

Procedure Manual 7.0

Final Report Cowra LGA 2016

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Executive Summary

LGA Overview

Cowra Local Government Area (LGA) is located in the Central West region

of New South Wales, approximately 310 km south-west of Sydney.

Agriculture is considered to be the main industry within the LGA, as a result

of the secure water provided by the Lachlan River which runs through the

heart of the LGA. The area is well known for its food and wine production.

Wyangala Dam is another popular attraction for the LGA, especially for water

sports and recreational activities.

The area has an estimated population of 12,551 according to Regional

Development Australia (RDA)(2013) and is well serviced by educational

facilities and community infrastructure.

Number of Properties Valued this Year and the Total

Land Value in Dollars

The Cowra LGA comprises residential, rural, commercial, industrial,

infrastructure, environmental, forestry, village and both private and public

recreation zones.

7,429 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

Cowra LGA property market has generally seen stability in values over the

current base date.

Valuation changes in the LGA and percentage changes between the Council

Valuation years of 1 July 2014 and 1 July 2016 and the Land Tax Valuation

year of 2015 are as follows:


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Cowra LGA Properties Value 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 16 $1,659,800 $1,628,300 1.93% $1,628,300 1.93%

B2 191 $20,360,900 $20,326,405 0.17% $20,326,405 0.17%

B5 96 $5,460,182 $6,000,200 -9.00% $6,00,200 -9.00%

B7 10 $1,280,900 $1,280,900 0.00% $750,900 70.58%

Environmental

E1 5 $472,000 $472,000 0.00% $472,000 0.00%

E2 10 $294,350 $294,350 0.00% $294,350 0.00%

E3 10 $659,380 $659,380 0.00% $659,380 0.00%

Industrial IN1 25 $2,752,200 $2,752,200 0.00% $2,752,200 0.00%

IN2 207 $14,139,945 $12,555,800 12.62% $12,369,700 14.31%

Residential R1 3,212 $167,759,711 $158,755,180 5.67% $157,720,780 6.37%

R5 678 $63,944,864 $63,741,980 0.32% $63,673,580 0.43%

Public

Recreation

RE1 33 $2,783,500 $2,783,500 0.00% $2,783,500 0.00%

RE2 12 $1,488,200 $1,488,200 0.00% $1,488,200 0.00%

Rural

RU1 2,245 $642,249,565 $641,350,850 0.14% $639,365,150 0.45%

RU3 3 $166,000 $166,000 0.00% $166,000 0.00%

RU4 37 $3,829,900 $3,829,900 0.00% $3,829,900 0.00%


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Cowra LGA Properties Value and Total Land Value

Zone Zone Number of

Entries

2016 Total

Land Value

Prior Land

Value (2015) % Change

Prior LGA

Valuation

(2014)

% Change

Village RU5 613 $16,495,761 $15,820,010 4.27% $15,997,730 3.11%

Infrastructure SP2 22 $1,460,840 $1,352,630 8.00% $1,352,630 8.00%


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State and Local Government Legislation for

LGA

The Cowra Local Environmental Plan (LEP) 2012 was gazetted on the 25th

January 2013. There have been three amendments made to the current LEP

since the previous valuation.

Table of Amendments

Year Amendment

Reference Description of Amendment

2016 (43) Standard Instrument (Local Environmental Plans)

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

commencement, 27.1.2016, cl 2.

(126) Standard Instrument (Local Environmental Plans)

Amendment Order 2016. LW 11.3.2016. Date of

commencement, on publication on LW, cl 2.


Amendment (Observatory and Defence Facility) Order 2016.

LW 10.6.2016. Date of commencement, 56 days after

publication on LW, cl. 2.

The Cowra LGA is governed by the Cowra LEP 2012. The plan is based on

the standardised LEP prescribed by the NSW Legislation.


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Market Overview and Sales of Particular

Interest

Aspect has undertaken significant analysis of the Cowra district property

market to provide an accurate and reliable basis of valuation. A total of 289

sales have been analysed to enable the establishment and verification of

land values as at 1 July 2016. These analysed sales also support the

grading across components. 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 analysed sales before or after 1 July it is necessary to adjust the contract

price in terms of market movement. Aspect Property Consultants analysed

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

re-sales over properties which supported component factors applied. In the

Cowra district this year, sales indicated an increase to 1 July 2016 for

properties located within the village of Gooloogong and light industrial

properties within Cowra. Residential properties located in the west and

central parts of Cowra also so an overall increase. However, sales of

commercial properties within B5 zone indicated an overall slight decrease in

values. Values over the rural zoned properties within the LGA remained

relatively stable.


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Significant Issues and Developments

The main significant issues and developments in the Cowra LGA for the

period are:

New aviation development at Cowra Airport provides 21 freehold

allotments available for tender to maximise the potential of the land at

the airport as a benefit to aviation-related industries, job creation and

the economy of the local Cowra community.

Public comment is being sought on the Review of Environmental

Factors for Cowra’s Heavy Vehicle Bypass project, which indicates

Council’s commitment on the completion of a bypass for Cowra to

enhance the CBD and improved traffic flow.

Cowra Shire Council received a low-cost loan of $2.1 million through

the State Government’s Fit for the Future campaign which will be

utilised to address the infrastructure backlog across the Cowra Shire.

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)

The Cowra residential market has seen some increases since the last

General Valuation in 2014. Areas in central Cowra increased 11% and areas

in the west of Cowra saw increases of 22%. Village locations of Gooloogong,

Darby’s Falls, Woodstock and Morongla saw increases from 5-15% in

values; however, values within the village Wattamondara have seen

decreases of 8% during this period.

Sales volumes have remained relatively stable within the residential areas

over the 24 month period, since the previous general valuation year.

Overall the residential rental market within the Cowra area is considered to

be stable, however, the low vacancy rates driven by the lack of supply of

rental housing provides good yields for investors.

Changes since Previous Valuation Year (2015)

Residential land has generally seen a slight increase in the Cowra LGA over

the last 12 months. As addressed above the residential areas of central

Cowra saw an increase of 11% and areas in the west of Cowra a 22%

increase. In addition, further to its 10% increase at the 1 July 2015 base date

the village of Morongla saw another 5% increase in values which was

supported by market evidence. The villages of Gooloogong and Woodstock

also received increases from 5-10%.


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Summary of Valuation Changes to Rural Land


The Cowra LGA is a well regarded rural locality due to its good quality

cultivation/irrigation country on the Lachlan and Belubula Rivers as well as

better quality soil types in the southern portion of the LGA towards Young.

The most common rural land uses in the Cowra LGA are cultivation and

grazing. Cowra also has a significant number of smaller rural home sites and

hobby farms in less productive areas to the east and west portions of the

LGA and also surrounding Wyangala Dam.

The broad acre rural property market has remained relatively stable since

the last general valuation year with no significant increases or decreases

across the LGA. This is also the case across the rural lifestyle/hobby farm

market with no significant changes in values.


As detailed above, the rural property market within the Cowra LGA across all

categories has remained relatively stable during the 12 month period from

the previous valuation year with no significant changes in values.


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Summary of Valuation Changes to Commercial Land


The commercial areas in Cowra are made up of residential neighbourhood

centres, the CBD, a business park which is located nearby the Cowra Airport

and a commercial area surrounding Redfern Street in the north-west of

Cowra.

The commercial business park nearby the Cowra Airport is a small

commercial precinct and saw a large increase in value of 70% at the 1 July

2015 base date as a result of increases indicated by vacant sales within the

area.

The commercial area zoned B5 which surrounds Redfern Street has seen a

decrease of 9% since the previous General Valuation Year which was

supported by current market evidence.

The commercial areas which make up the Cowra CBD and residential

neighbourhood centres have seen no significant changes in values over the

24 month period.


As stated above, the commercial area zoned B5 which surrounds Redfern

Street has seen a decrease of 9% at the 1 July 2016 base date which was

supported by current market evidence.

All other commercial areas within the Cowra LGA have seen no significant

changes in values over the 12 month period.


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Summary of Valuation Changes to Industrial Land


The industrial areas of Cowra are made up of both IN1 General Industrial

and IN2 Light Industrial properties.

Light industrial properties situated in the south-west of Cowra surrounding

Young and Grenfell Road have seen an increase of approximately 15% over

the 24 month period since the previous General Valuation year.

All other industrial properties within Cowra have remained stable during this

period.


As detailed above, light industrial properties situated in the south-west of

Cowra surrounding Young and Grenfell road have seen increases since the

previous Valuation year of approximately 13%.

The Ranken Street mixed residential and industrial area saw significant

increases over the 12 month period following vacant and improved sales

evidence showing increased interest from purchasers over the period.

All other industrial properties within Cowra have remained stable during this

period.


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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 .................................................................... 7

Significant Value Changes ..................................................................................... 8

Contents ............................................................................................................... 12

Disclaimer – Purpose of this Report ..................................................................... 13

LGA Overview ...................................................................................................... 14

State and Local Government Legislation for the LGA .......................................... 16

Market Overview & Sales of Particular Interest .................................................... 17

Significant Issues and Developments .................................................................. 20

Significant Value Changes ................................................................................... 21

Overview of the Quality Assurance Process ........................................................ 23

Author .................................................................................................................. 23


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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 Cowra 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

The Cowra local government area (LGA) is located in the Central West

region of New South Wales, approximately 310 km south-west of Sydney

and has an estimated population of 12,551 (RDA 2013).

Cowra LGA includes a number of smaller villages such as Billimari, Darbys

Falls, Gooloogong, Morongla, Noonbinna, Wattamondara, Woodstock and

Wyangala.

Principal Towns

Cowra

Cowra is the principal town and farming and administrative centre for the

Cowra LGA. The town has an estimated population of 9,730 (2011 Census).

It is situated on an intersection of three major state highways, being the Mid-

Western Highway, the Olympic Highway and the Lachlan Valley Way.

Woodstock

Woodstock is the largest village within the Cowra LGA and was once a gold

and copper mining village. The village’s pub and railway station have

recently been restored and there are several B&B’s which are utilised for

accommodation by visitors to the area. At the 2011 Census the village had a

population of 812 people.


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Main Industries

According to Regional Development Australia (2013) the top five

employment sectors in the LGA are agriculture, manufacturing, health care,

education and training and wholesale trade.

Because of the rich soil types providing by the Lachlan Valley the region has

also developed into a prominent producer of food and wine in NSW.

Significant Retail Centres

The Cowra central business district provides the main retail centre for the

Cowra LGA. It features several larger supermarkets and department stores

which include ‘Target’, ‘Coles’, ‘Woolworths’, ‘Aldi’ and ‘The Reject Shop’. In

conjunction with these larger shopping destinations the town also provides a

lot of smaller boutique stores.

Although the Cowra CBD is sufficient for most day to day needs there are

many people who utilise the services of nearby Orange (92km) and

Canberra (189km) as their major retail destinations.

Types of Residential Development

The Cowra LGA predominantly comprises rural and residential properties,

with the majority of the developments located in and round the town of

Cowra itself. Most of the residential development within the town was

constructed approximately 80 years ago, however there have been newer

homes constructed in the North and West Cowra areas and in the rural

residential areas on the perimeter of the town.

The village areas such as Noonbinna, Woodstock and Wattamondara

primarily comprise residential and rural residential properties which are more

affordable than those within Cowra itself whilst still being within a close

proximity to the CBD.


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State and Local Government Legislation for the

LGA

The Cowra Local Environmental Plan (LEP) 2012 was gazetted on the 25 th

January 2013. There have been three amendments made to the current LEP

since the previous valuation.

Table of Amendments

Year Amendment

Reference Description of Amendment

2016 (43) Standard Instrument (Local Environmental Plans)

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

commencement, 27.1.2016, cl 2.


Amendment Order 2016. LW 11.3.2016. Date of

commencement, on publication on LW, cl 2.


Amendment (Observatory and Defence Facility) Order 2016.

LW 10.6.2016. Date of commencement, 56 days after

publication on LW, cl. 2.

The Cowra LGA is governed by the Cowra LEP 2012. The plan is based on

the standardised LEP prescribed by the NSW Legislation.

In conjunction to the Cowra LEP, Cowra Shire Council has implemented the

Cowra Development Control Plan (DCP) 2014 primarily to meet the needs of

its local community. The DCP 2014 is made up of a number of different parts

which address different categories of development and planning issues.


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Market Overview & Sales of Particular Interest

Residential

The Cowra LGA prominently detached single storey residential dwellings,

with the majority of the developments located in and round the town of

Cowra itself.

Most of the residential development within the town was constructed

approximately 80 years ago; however there have been newer homes

constructed in the North and West Cowra areas and in the rural residential

areas on the perimeter of the town.

Cowra has all services available, including a reticulated town water supply,

reticulated sewerage and telecommunication services. Cowra also has a

wide range of facilities available including an airport, four child care centres,

three primary schools, two secondary schools, a hospital, a community bus

service, extensive shopping including major retail outlets such as Target,

Coles, Woolworths and Aldi and diverse sporting and aquatic facilities

including a heated Olympic pool and surrounding sporting fields.

Sales volumes have only slightly decreased within the past twelve months,

however value levels have remained generally stable over this period with

some slight increases in areas of Central and West Cowra.

Recent residential development within Cowra includes the Chardonnay Hills

Estate which is a 66 allotment subdivision, the estate is located in North

Cowra and there is also a 110 allotment subdivision adjoining, adjacent to

the Cowra High School.

Growth has been evident in the Central and West areas of Cowra since the

last General Valuation in 2011 with the Central areas experiencing an

increase of 11% and the West an increase of 22%.

The value levels adopted are supported by both vacant and improved sales

analysis.


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Villages

The Cowra LGA includes a number of smaller villages, such as Billimari,

Darbys Falls, Gooloogong, Morongla, Noonbinna, Wattamondara,

Woodstock and Wyangala.

These villages have seen a recent renewal in demand as purchasers seek a

rural lifestyle which is affordable and within a close proximity to services.

This is identified by the increase in sales volumes in the areas, with a 36%

increase from the previous valuation year and values indicating increases in

most areas.

Growth has been primarily evident in the village of Morongla which has seen

an increase of 15% in values since the 2011 General Valuation, along with

increases in Gooloogong, Darbys Falls and Woodstock of 5-13.5%.

However, the village of Wattamondara has experienced some decreases

within this period of approximately 8%.

Commercial

The Cowra LGA comprises 313 commercial zoned properties which are all

located within the town of Cowra.

The Cowra LGA commercial market had 18 market indicator sales

throughout the 1 July 2016 base date. These sales indicated a relatively

stable market with little variance to land values with the B5 zoned sales the

exception. The sales zoned B5 which surround the Redfern Street area of

Cowra indicated a decrease of approximately 9% to land values.

All sales occurred within the town of Cowra and most were supported with

the use of feasibility studies where possible.


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Industrial

The Cowra LGA includes 232 industrial zoned properties which are all

located within the town of Cowra. These properties are made up of both the

IN1 General Industrial and the IN2 Light Industrial zones and located

primarily in the north-west and south-west of Cowra, either surrounding main

arterial roads or railway lines.

The Cowra LGA industrial market had 12 market indicator sales throughout

the 1 July 2016 base date. Most of which were in the IN2 zoning in the area

to the south-west of Cowra around Young and Grenfell Road.

These sales predominantly indicated an increasing market with

approximately 10% in variance to land values.

Overall, since the last General valuation in 2014 there has been a moderate

increase to land values, predominantly over the IN2 zoned properties.

Rural

The Cowra LGA is a well regarded rural locality due to its good quality

cultivation/irrigation country on the Lachlan and Belubula Rivers and better

quality soil types in the southern portion of the LGA towards Young. The

most common rural land use in the Cowra LGA is cultivation and grazing.

Cowra also has a significant number of smaller rural home sites and hobby

farms in less productive areas to the east and west portions of the LGA and

surrounding the Wyangala Dam.

The broad acre rural property market has remained relatively stable since

the last general valuation year with no significant increases or decreases

across the LGA. This is also the case across the rural lifestyle/hobby farm

market with no significant changes in values.


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Significant Issues and Developments

Significant Developments – From Prior to Current Local Government

Council Rating Valuation

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.

New developments in discussion or underway include:

Approval for a 39 allotment residential subdivision in West Cowra on

the Grenfell Road (May 2015).

New aviation development at Cowra Airport provides 21 freehold

allotments available for tender to maximise the potential of the land at

the airport as a benefit to aviation-related industries, job creation and

the economy of the local Cowra community.

Public comment is being sought on the Review of Environmental

Factors for Cowra’s Heavy Vehicle Bypass project which indicates

Council’s commitment on the completion of a bypass for Cowra to

enhance the CBD and improved traffic flow.

Significant Developments – From Prior to Current Annual Valuation

New developments in discussion or underway include:

Approval for a 12 allotment residential subdivision in West Cowra, to

the north of Cowra Road (September 2016).


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Significant Value Changes

Significant Value Changes – From Prior to Current Local Government

Council Rating Valuation

Since the last General Valuation in 2014 the Cowra LGA as a whole saw an

increase of 1.68%. There were only eight components which saw a negative

change in value, with the greatest decrease being 9.00%. There were seven

components in the LGA which saw an increase of greater than 10% for the

current valuation year.

Components which saw significant increases in line with both improved and

vacant sales were:

The village of Morongla saw an increase of 15.88% as the village is

becoming an increasingly popular area for Cowra LGA residents to

move to and commute back to Cowra for work. This is also the case in

the village of Gooloogong which increased by 10.43% and Darbys Falls

which increased by 13.50%.

The residential component in West Cowra saw an increase of 21.96%.

The residential component in Central Cowra saw an increase of

11.03%.

The industrial component located in the south-west of Cowra

surrounding Young and Grenfell Road saw an increase of 14.60%.

The commercial business park component located nearby the Cowra

Airport which saw an increase of 70.58%, this is based on two vacant

sales indicating increases and a small component of only ten

properties.


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Significant Value Changes – From Prior to Current Annual Valuation

Since the previous annual valuation in 2015 the Cowra LGA as a whole saw

an increase of 1.28%. There were only eight components which saw a

negative change in value, with the greatest decrease being 9.00%. There

were four components in the LGA which saw an increase of greater than

10% for the current valuation year.

Components which saw significant increases in line with both improved and

vacant sales were:

The village of Gooloogong saw an increase of 10.60% as the village is

becoming an increasingly popular area for Cowra residents to move to

and commute to Cowra for work.

The residential component in West Cowra saw an increase of 21.96%.

The residential component in Central Cowra saw an increase of

11.03%.

The industrial component located in the south-west of Cowra

surrounding Young and Grenfell Road saw an increase of 12.87%.


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Overview of the Quality Assurance Process

LPI 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€¦ · Prepared For Property NSW Base Date 1 July 2016 Version 1.1 Prepared...

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