final report...narrabri shire 2015 govval pty ltd this report is confidential information for the...

GOVVAL PTY LTD Shop 16 Civic Mall Conadilly Street

PO Box 768 GUNNEDAH NSW 2380

ACN: 118 105 810 ABN: 91 118 105 810

Pty Ltd

Contract Services ManagerChristina Deans p: 02 67422641 f: 02 67423984

e: [email protected]

DirectorPeter Spackman p: 02 67422641 f: 02 67423984


DirectorPaul Kelly

p: 02 67511100 f: 02 67511766


Final Report

Local Government Area of

Narrabri (247)

BASE DATE: 1 JULY 2015

NARRABRI SHIRE 2015 GOVVAL Pty Ltd

This report is Confidential Information for the use of the Valuer-General and Govval Pty Ltd. Disclosure or misuse of this information may lead to legal action.

TABLE OF CONTENTS 1. EXECUTIVE SUMMARY ...................................................................................................................... 4

1.1. SHIRE OVERVIEW ................................................................................................................... 4

1.2. VALUATION SUMMARY .......................................................................................................... 4

1.3. SUMMARY OF CHANGE IN VALUES ......................................................................................... 4

1.3.1. Overall Change in Valuation and Reasoning ............................................................... 4

1.3.2. Residential ................................................................................................................. 4

1.3.3. Village........................................................................................................................ 4

1.3.4. Business..................................................................................................................... 4

1.3.5. Industrial ................................................................................................................... 5

1.3.6. Rural .......................................................................................................................... 5

1.4. QUALIFICATIONS .................................................................................................................... 6

2. SHIRE OVERVIEW .............................................................................................................................. 7

2.1. LOCATION .............................................................................................................................. 7

2.2. TOWNS .................................................................................................................................. 8

2.3. INDUSTRY .............................................................................................................................. 8

2.4. SIGNIFICANT RETAIL CENTRES ................................................................................................ 8

2.5. RESIDENTIAL DEVELOPMENT.................................................................................................. 8

2.6. PROPERTY TYPES .................................................................................................................... 8

2.6.1. Residential ................................................................................................................. 8

2.6.2. Commercial ............................................................................................................... 9

2.6.3. Industrial ................................................................................................................... 9

2.6.4. Rural Residential ........................................................................................................ 9

2.6.5. Rural .......................................................................................................................... 9

2.7. NUMBER OF VALUATIONS .................................................................................................... 10

3. LEGISLATION CHANGES / DETAILS ................................................................................................... 11

3.1. TOWN PLANNING................................................................................................................. 11

3.2. SIGNIFICANT CHANGES TO THE LEP ...................................................................................... 12

4. SIGNIFICANT ISSUES / DEVELOPMENTS ........................................................................................... 14

4.1. GENERAL .............................................................................................................................. 14

4.2. DEVELOPMENT APPLICATIONS ............................................................................................. 14

5. ADDED VALUE OF IMPROVEMENTS................................................................................................. 16

5.1. OVERVIEW ........................................................................................................................... 16

5.1.1. Paired Sales Approach ............................................................................................. 16

5.1.2. Replacement Cost Approach .................................................................................... 16

5.2. SCHEDULE OF PAIRED SALES ................................................................................................ 17

5.2.1. Paired Sale 1 ............................................................................................................ 17

5.2.2. Paired Sale 2 ............................................................................................................ 18

5.2.3. Paired Sale 3 ............................................................................................................ 19

5.2.4. Paired Sale No. 4 ...................................................................................................... 20

5.2.5. Paired Sale No. 5 ...................................................................................................... 21

5.2.6. Paired Sale No. 6 ...................................................................................................... 22



5.3. ADOPTED RESIDENTIAL ADDED VALUE / COST GUIDE ........................................................... 23

6. MAIN FEATURES OF THE MARKET & SIGNIFICANT SALES ................................................................. 24

6.1. MARKET FEATURES .............................................................................................................. 24

6.1.1. Residential & Villages ............................................................................................... 24

6.1.2. Rural Residential ...................................................................................................... 24

6.1.3. Commercial ............................................................................................................. 25

6.1.4. Industrial ................................................................................................................. 25

6.1.5. Rural ........................................................................................................................ 27

6.2. SIGNIFICANT SALES .............................................................................................................. 27

7. OVERVIEW OF VERIFIED LAND VALUES ........................................................................................... 28

7.1. RISK RATING BASIS ............................................................................................................... 28

7.2. COMPONENT BASIS .............................................................................................................. 28

8. OBJECTION & REASCERTAINMENT .................................................................................................. 29

8.1. METHOD FOR REASCERTAINMENTS ..................................................................................... 29

8.2. METHOD FOR OBJECTIONS................................................................................................... 29

9. STATISTICAL ANALYSIS .................................................................................................................... 31

9.1. OVERVIEW ........................................................................................................................... 31

10. SIGNIFICANT VALUE CHANGES ........................................................................................................ 33

10.1. CHANGES FROM PREVIOUS YEAR ......................................................................................... 33

10.2. CHANGES FROM LAST GVAL ................................................................................................. 38

11. QUALITY ASSURANCE ...................................................................................................................... 39

11.1. OVERVIEW ........................................................................................................................... 39

12. DISCLAIMER .................................................................................................................................... 40



1. EXECUTIVE SUMMARY

1.1. SHIRE OVERVIEW

The Narrabri Shire is located in North West New South Wales. Approximately 540 kilometres North West of Sydney. The shire is bounded by the Moree Plains Shire to the north, roughly aligned to the town of Bellata, Walgett Shire to the west, roughly aligned with Pilliga and Burren Junction. Gunnedah Shire to the south roughly aligned to Boggabri and Bingara and Barraba Shires to the east roughly along the Nandewar Ranges.

The town’s economy is predominantly agriculturally based with a significant irrigation industry, predominantly growing cotton. The Shire also has significant industry associated with agriculture including cotton gins, grain storage and grading facilities, oil seed crushing mill, as well as significant storage, warehouse and shipping facilities.

There is also increasing investment going into the energy industries of gas extraction and coal mining in the shire. These industries are growing and having one of the most obvious impacts on the shire.

1.2. VALUATION SUMMARY

Item Number

Properties valued this year 6,962

Last local government base date 2014Total value of properties valued 2014 $1,735,531,460

Total value of properties valued 2015 $1,753,206,110

% Change from 2014 to 2015 1.02

1.3. SUMMARY OF CHANGE IN VALUES

1.3.1. Overall Change in Valuation and Reasoning

This minimal increase in value by 1.02% is primarily due to value changes through verification.

1.3.2. Residential

Over the reporting period, values have remained steady across the residential components with a factor of 1.0 applied and handcrafting where necessary. Please refer to the individual benchmark reports for further market commentary.

1.3.3. Village

The similar villages of Gwabegar and Pilliga were lifted by a factor of 1.2 following some stronger sales. The villages to the north of the shire of Edgeroi and Bellata have remained steady over the 2015 base date year. Please refer to the individual benchmark reports for further market commentary.

1.3.4. Business

Values have remained steady across Narrabri’s commercial components and a factor of 1.0 has been applied. Verification has taken place however during the reporting period and entries have been handcrafted where necessary.



Wee Waa commercial has again experienced a low volume of sales, with the sales available indicating values are remaining steady. However the mixed commercial area has had a factor of 1.10 in line with similar industrial components. See industrial 1.3.5 for further details.

1.3.5. Industrial

There have been limited industrial sales in the main town of Narrabri indicating a reasonable level market with no evidence of significant value changes.

In Wee Waa, there was only a light sprinkling of sales, which indicated some strengthening in values over the reporting period and BWB, IWA and IWB were lifted by 10%. The industrial components IWA and IWB also experienced growth in BD2013 mainly stemming from mining in the region. Recent improvements are mainly attributed to improved local economic conditions, including the rural sector.

1.3.6. Rural

There has been a relatively low volume of rural sales, with sales evidence available generally indicating that values are remaining steady. This year we have left the factors of the components at 1.0. We have continued to change some values through verification.

The season this year has been variable with a good season to the east and once again a dry season to the west. The values to the west have still remained relatively strong even though conditions have been poor to variable.

The yields to the east appear to be good again which will keep values up. This country has remained consistently yielding well and therefore the $2,000 plus an acre is going to remain the price for better eastern country.

The change in land use remains the biggest change in value and as these changes are picked up though verification the values will be changed.

The irrigation market appears to be remaining steady even though conditions are going to be tough again. There will be limited to no water for this summer which will affect returns. The price of cotton at $500 bale is good but water remains the limiting factor. We expect with strong underlying land values the value for irrigation will remain unchanged.

Water prices are remaining steady even with no water in account.



1.4. QUALIFICATIONS

The executive summary is to be read in conjunction with the valuation information supplied in the following report together with the VAR Quality Control Report and Benchmark Report.

Peter SpackmanDirector GOVVAL PTY LIMITED

Nicole HubbardValuer GOVVAL PTY LIMITED

Christina DeansContract Services Manager GOVVAL PTY LIMITED

30th October 2015



2. SHIRE OVERVIEW

2.1. LOCATION

Narrabri Shire is located in North West NSW approximately 540 kilometres north west of Sydney. The Shire is bounded by the Moree Shire to the north roughly aligned to the town of Bellata, the Walgett Shire on the west roughly aligned to Pilliga and Burren Junction. Gunnedah Shire to the south roughly aligned to Boggabri and Bingara and Barraba Shires to the east roughly along the Nandewar Ranges. The Shire covers an area of approximately 13,065 square kilometres and has a total Shire population of 12,925 (2011 Census, ABS, 19/10/2012). The Newell Highway runs through the centre of the Shire in a north south direction, the Kamilaroi Highway runs east west and then south east. The town of Narrabri is situated on the banks of the Narrabri Creek and Namoi River, which is the main watercourse although there are significant creeks that flow into the Namoi River.



2.2. TOWNS

Narrabri is located roughly in the centre of the Shire, is the home of local government and the major population centre with about 7,500 people.

Other significant towns and villages include the town of Wee Waa and Boggabri. The villages of Bellata, Pillage, Gwabegar, Edgeroi and Baan Baa.

2.3. INDUSTRY

Agriculture is the main land use in the Narrabri Shire. The agricultural pursuits are diverse ranging from irrigated summer and winter cropping. Dryland, summer and winter crops, sheep and cattle grazing. Crops include cotton, sorghum, wheat, barley, sunflower, canola, chick peas with fodder cropping for stock. Winter cereals such as wheat and barley, and fodder crops such as barley and oats.

Secondary industry associated with the agricultural industry includes cotton gins, oil seed crushing mill, grain and cotton handling facility and large stock feed packing and grain grading facilities.

Coal mining enters into the Narrabri Shire in the south eastern corner to the east of Boggabri. Although it is located in the Narrabri Shire the major benefits from the coal mining are likely to flow on to Gunnedah at least initially with some benefits to Boggabri.

2.4. SIGNIFICANT RETAIL CENTRES

Being only a smaller rural shire, Narrabri contains no significant retail centres. The retail hub for Narrabri is Maitland Street which is lined with small retail and service providers. Other outlets are scattered throughout the township. National supermarkets include Coles and Woolworths which attract consumers from all over the district.

2.5. RESIDENTIAL DEVELOPMENT

Development activity over the last 12 months has plateaued. The most recent estate having been released is the Shannon Estate which was released prior to the 2014 base date year. It is located approximately 2 kilometres east of the main town area and divided from the main town area by the North Western Railway Line. This residential estate comprises 32 relatively level building lots ranging from 970 m2 to 2.3 ha. Sales have continued in this estate during the course of the 2015 base date year, activity has been slower than the prior twelve months however. There are now complete dwellings and town house style development in the estate.

The Mac Camp Village developed for fly in fly out mining employees on the outskirts of both Narrabri and Boggabri are both still operative.This comprises of donga style accommodation.

2.6. PROPERTY TYPES

2.6.1. Residential

Narrabri has gradually developed into 3 distinct areas being the town, village and the west. The older blocks are around 1,000 m². The 1970’s developments were generally smaller at about 800 m². The new subdivisions have block sizes ranging from 800 m² to 1,300 m².



2.6.2. Commercial

Commercial blocks in the main CBD range from about 200 m² through to 600 m² however there are a number of significant sites such as the Woolworths development which has an area of approximately 6,000 m².

2.6.3. Industrial

Industrial blocks range from 1,000 m² to close to approximately 12 hectares. There are significant amounts of industrial land particularly in the Francis Street area as well as potential for significant developments to the west of the Newell Highway and to the north of the Wee Waa Road.

2.6.4. Rural Residential

There are 3 distinct styles of rural residential, the first being the smaller rural residential holdings close to town zoned R5, the second being RU4 Small Rural Holdings and the third RU1 Rural zoned properties which are smaller rural lifestyle blocks with an existing use right.

The major rural residential areas are on the Kaputar Road, east of the town of Narrabri and to the south along Gun Club Road and Jacks Creek Road.

2.6.5. Rural

Irrigation properties range from about 240 hectares to close to 20,000 hectares with many significant holdings within the 800-1,600 hectare range. The prime first class heavy soil farming country has also been aggregated and although the majority of the blocks fall in the region of 600 hectares to the east, the larger parcels to the west of the Shire range from 2,000 to 4,000 hectares with the most significant holding having an area of about 48,000 hectares. The lighter soil parcels to the east of the Shire, which is in the Boggabri, Maules Creek area range in size from 300 to 1,500 hectares, whilst the lighter country in the western half of the shire ranges from about 400-2,000 hectares.



2.7. NUMBER OF VALUATIONS

The following table highlights the total number of valuation undertaken per zone (as at 25/09/2015):-

Zone Number

B1 Neighbourhood Centre 22

B2 Local Centre 331

B4 Mixed Use 309

E1 National Parks and Nature Reserves 1

E3 Environmental Management 2

IN1 General Industrial 80

IN2 Light Industrial 92

R1 General Residential 2993

R5 Large Lot Residential 456

RE1 Public Recreation 29

RE2 Private Recreation 2

RU3 Forestry 2250

RU1 Primary Production 1

RU4 Primary Production Farmlets 15

RU5 Village 345SP2 Infrastructure 34

TOTAL 6,962



3. LEGISLATION CHANGES / DETAILS

3.1. TOWN PLANNING

The plan itself provides for a basic zoning framework – B1 Neighbourhood Centre; B2 Local Centre; B3 Commercial Core; B6 Enterprise Corridor; B7 Business Park; E1 National Parks and Nature Reserves; E4 Environmental Living; IN1 General Industrial; IN2 Light Industrial; R1 General Residential; R2 Low Density Residential; R5 large Lot Residential; RE1 Public Recreation; RE2 Private Recreation; RU1 Primary Production; RU4 Rural Small Holdings; RU5 Village; SP1 Special Activities; SP2 Infrastructure.

The Narrabri Shire Local Environment Plan 2012 was released on 21 December 2012 replacing the previous three LEP’s the Shire was operating under; the Narrabri Shire Local Environmental Plan No 2, 1986; the Narrabri Shire Local Environmental Plan No 5, 1988 which covered the town of Boggabri and the Narrabri Local Environmental Plan, 1992 which covered the area previously part of the Namoi Shire.

Aims of the Narrabri LEP 2012 are as follows:

(1) This Plan aims to make local environmental planning provisions for land in Narrabri in accordance with the relevant standard environmental planning instrument under section 33A of the Act.

(2) The particular aims of this Plan are as follows:

(a) to encourage the orderly management, development and conservation of resources by protecting, enhancing and conserving:

(i) land of significance for agricultural production, and

(ii) timber, minerals, soil, water and other natural resources, and

(iii) areas of high scenic or recreational value, and

(iv) native plants and animals including threatened species, populations and ecological communities, and their habitats, and

(v) places and buildings of heritage significance,

(b) to provide a choice of living opportunities and types of settlements,

(c) to facilitate development for a range of business enterprise and employment opportunities,

(d) to ensure that development is sensitive to both the economic and social needs of the community, including the provision of community facilities and land for public purposes.

The land use zones under the new LEP are as follows:

· Rural Zones: -RU1 Primary Production, RU3 Forestry, RU4 Primary Production Small Lots and RU5 Village

· Residential Zones:- R1 General Residential and R5 Large Lot Residential

· Business Zones:- B1 Neighbourhood Centre, B2 Local Centre and B4 Mixed Use

· Industrial Zones:- IN1 General Industrial and IN2 Light Industrial

· Special Purpose Zones:- SP2 Infrastructure

· Recreation Zones:- RE1 Public Recreation and RE2 Private Recreation

· Environment Protection Zones:- E1 National Parks and Nature Reserves and E3 Environmental Management



The most significant changes or impact with the introduction of the land use zones under the new LEP include:

· the 4 different residential zones in the town of Narrabri becoming the one General Residential land use zone,

· movement of properties from the Rural 1(c) and rural zoning to R5 Large Lot Residential, RU4 Primary Production Small Lots or RU1 Primary Production and the newly applicable minimal lot size requirements,

· previously Floodway zoned land now rural zoning RU1 Primary Production,

· realignment of business and industrial zoned properties, with some newly zoned business or industrial properties incorporating properties with residential improvements, and

· land now zoned Special Purposes; SP2 Infrastructure, limiting use.

It is significant to note also there is a sunset clause under the new LEP; clause 4.2B(3) which provides for development of a dwelling on RU1, RU4, R5 and E3 zoned land that does not meet the minimum lot size in certain situations, for example if the lot was created before the Plan commenced and on which the erection of a dwelling was permissible immediately before such commencement, or for example if the lot results from a subdivision for which development consent was granted before the new Plan commenced and on which the erection of a dwelling house would have been permissible if the plan of subdivision had been registered before such commencement. Please refer to the Narrabri LEP 2012 for full details.

3.2. SIGNIFICANT CHANGES TO THE LEP

The amendments made to the LEP since it was implemented are shown in the table below.

Generally the amendments are either amending the zoning or reducing the minimum lot size to promote further development, allow subdivision and increase the permitted uses of the land in question. Amendment No 3 rezones two different sites to a more beneficial residential zoning and it additionally makes omissions and insertion of additional uses in the RU1, RU4, B1, IN1, IN2 and RE1 zone land use tables, including insertion of a heads of consideration clause relating to the consideration of detached dual occupancies in the RU1 and RU4 zones.

Description Date of Gateway Determination

Date of Publication

Stage of Approval

Narrabri LEP 2012 - Amendment No 6 - Rezone land in Boggabri and correct LEP mapping errors

30/09/2015

Approved at Gateway and with

RPA for implementation

Narrabri LEP 2012 - Rural Boundary Adjustments clause

16/10/2014 13/02/2015 Approved by Minister or

Delegate

Narrabri LEP 2012 (Amendment No 5) - Rezone Lots 1, 4, 5, 8, 39 & 47 DP 754930 from RU1 to RU4


Delegate

Narrabri LEP 2012 (Amendment No 4) - Rezone Lot 6 DP 701588, 223 Kaputar Road, Narrabri from RU1 to R5 and amend the minimum lot size from 100ha to 2ha.


Delegate



Narrabri LEP 2012 Amendment No 3 - Minor Amendments


Delegate

Narrabri Local Environmental Plan 2012 (Amendment No 1) - Proposed rezoning at 5-11 Maitland St, Narrabri, from RE1 Public Recreation to RE2 Private Recreation


Delegate

Narrabri Local Environmental Plan 2012 (Amendment No 2) - Minimum lot size change to Lot 81 DP 2855, Ugoa St, Narrabri


Delegate



4. SIGNIFICANT ISSUES / DEVELOPMENTS

4.1. GENERAL

No new residential or rural residential estates have been released in the 2015 base date year. Sales in the most recently released residential Shannon Estate in Narrabri have continued along with rural residential sales in the Highfield subdivision.

Minor rural residential subdivisions have continued with 2-10 hectare sites close to Narrabri continuing to sell well.

The development which remains to have the most significant impact on the Shire is the mining development. Both the giant Maules Creek and Boggabri Mine extensions have now commenced production after a lengthy approval and development process. The Tarrawonga extension has also been completed and production levels are increasing to 3 million tonnes per year. There are currently four producing coal mines in the Narrabri Shire, these include Maules Creek, Boggabri, Tarrawonga and the Narrabri Mine which is a large underground mine that has been in production for a number of years. Production from the four mines over the next 12 months is likely to bet close to 20 million tonnes per year.

The mines have completed most of their purchasing for the mine site and for biodiversity offset although there may still be a number of purchases as a result of the level of noise or dust affectation.

Whitehaven are also continuing with the proposed extension to the existing approval for the Vickery Mine although at this stage it is only an approval process and there is no current purchasing associated with that proposal.

Santos have continued with their Narrabri operations with the majority of the producing wells located in the Pilliga State Forest although there are a number of smaller production wells that are in other areas and utilized primarily for observation purposes. Santos have made a couple of minor acquisitions only and are not large land holders.

The Narrabri and Boggabri MAC villages continue to operate.

4.2. DEVELOPMENT APPLICATIONS

In line with generally a plateau throughout the shire, the total number of development applications has reduced this year from 320 to 183, this number is in line with the 2012 figures. Estimated cost however is lower and the lowest it has been in the last 4 years. This is mostly due to more substantial development relating to the mining in the shire taking place in the earlier years. - A summary of development activity is as follows:

2012 182 Development Applications with an estimated cost of $72,412,320, Major development included:

· Mining Village for estimated costs of $45,000,000

· New Indoor Aquatic Centre for approximately $4,875,000

· Assisted Living Hostel for estimated costs of $1,200,000

· Maitland Street Hotel for approximately $726,000



· Bulky goods retail development $640,000

· Motel Units $587,000

· Multi Dwelling $560,000

2013 216 Development Applications with an estimated cost of $73,955,900. Major development included:

· Bulk Commodity Handling & Rail Terminal estimated costs of $29,100,000

· RSL Renovations $6,500,000

· Expansion of existing logistics centre $2,880,000

· Temporary drillers camp $1,140,000

· Office Building Doyle Street $1,000,000

· A number of multi units and serviced apartments


· Rural industry services estimated costs of $1,936,000

· Multi unit dwelling in Boggabri $1,000,000


· Demolition and construction of a new retail and short stay accommodation in Boggabri $1,100,000



5. ADDED VALUE OF IMPROVEMENTS

5.1. OVERVIEW

Improved sales are deduced to establish the land value by deducting the added value of improvements, from the sales price, to arrive at a value as a vacant allotment.

In doing so, we have documented an allowance for the added value of the improvements and/or where appropriate, documented where the improvement have no added value and why this is so e.g. limited function, fair condition etc.

In determining the added value of improvements, whilst the preferred approach is through the use of paired sales analysis, due to the restricted/ low volume of sales of vacant land, in some circumstances we have had to adopt a cost based approach.

5.1.1. Paired Sales Approach

This approach is used where vacant land sales have been insufficient quantity to negate any possibility of a scarcity factor. The land value demonstrated by vacant land sales has been taken from the sale price of improved properties to determine the market’s perception of added value for improvements. In turn, the resulting analysis is then applied to other improved sales to illustrate the residual land value.

5.1.2. Replacement Cost Approach

This method has been largely used in our analysis of sales, due to the limited volume of vacant land sales, for use in the paired sales analysis.

This approach is based on the principle that an informed purchaser would pay no more, or no less than the cost to reproduce the property for sale.

These costs are based on buildings of a similar nature to the subject and expressed as a rate/m². Additionally, value judgments concerning improved properties have been made to account for the age, condition and functional obsolescence of any existing improvements.

Sources of Added Value/ Cost Information have been sourced from a number of areas including:

· Rawlinsons Australian Construction Handbook which provides an average cost range of building prices updated quarterly.

· Current market data collected from “To Be Erected” valuations undertaken throughout the year.

· Data from suppliers and contractors.

· Information gleaned from actual costs provided to the firm for valuation purposes.

· Additionally in some circumstances where an improvement is not material, a nominal value has been applied (as opposed to a rate/m²), with this rate again depending on the improvements age, quality and condition.

· In terms of rural improvements: o The cost of rural improvements is sourced on property inspections and the base

data is also checked with manufacturers and retailers and updated on a regular basis.

o We have already a significant number of basic rural costing, which have been sourced and stored as a data file. These costings have been updated and added to this year.



· In terms of plant and equipment: o Auctions/Clearing sales conducted by this firm. o Valuations completed by this firm.

5.2. SCHEDULE OF PAIRED SALES

This approach has been used to analyse the market allowance for the added value of improvements and applied to improved sales to show the residual land value.

5.2.1. Paired Sale 1

Address 11 ISABELLA CL, NARRABRI 2390, AID 131614, PID 3276090

CD: 04-Mar-2015 PP: 135,000 Area: 1497 m2

Sale summary Vacant land situated in the Brailoc residential subidvision; a prime location at the top of thegolf course. Relatively level irregular fan shaped allotment in cul-de-sac with small frontage to Isabella Close. Satisfactory drainage and access. Town services, bitumen road, kerb and gutter. Zoned R1. Subject to 1:50 year flood event. The most recent 2015 sales appears to be a private sale. The adjoining allotment transacted on the same date between different parties for $130,000; a smaller allotment showing around a 4% increase in the underlying land value. Property previously sold in May 2012 for $135,000. The limited sales evidence and previous 2012 sale provides supporting evidence for a factor of 1 to be adopted in this component.

Calculations Sale price 135,000

Less

Nil

Analysed LV 135,000

Analysed Rate 90.18/m2

Address 109 GIBBONS ST, NARRABRI 2390, AID 132183, PID 2658509

CD: 11-Dec-2014 PP: 420,000 Area: 1012 m2

Sale summary The property is located approximately 2 kilometres from the town centre on the southern side of Narrabri Creek close to the hospital and golf course. This is considered one of the better residential areas in Narrabri. The land is generally level with satisfactory access off Gibbons Street. Services include power, telephone, water, bottled gas and sewerage. Gibbons Street is bitumen sealed, kerbed and guttered. Zoned R1 Residential under the Narrabri LEP 2012. Subject to flooding. Improved with a circa 1950-60's weatherboard and iron 3 bedroom, 2 bathroom dwelling with rumpus (or 4th bedroom). Home is in average to good condition with updated kitchen and bathroom, fully renovated laundry with new shower and toilet, good paint and floor coverings. Ancillary includes carport, concrete drive, garden shed, tank, established lawns and gardens. Overall a well presented property. Open market transaction marketed through Davidson Cameron and Co. Sold previously in August 2013 for $372,500. Some improvements have been made since this time.


Less

Main 208 m² @ 1,300/m² 270,400

Carport 22 m² @ 75/m² 1,650

Ground Improvements 10,000

Analysed LV 137,950


Comments

11 Isabella St is slightly larger than 109 Gibbons St however the holdings are similar on a residential block value. The improved sale indicates an analysed rate of about $1,300/m2 for the main living area. This rate reflects a medium to larger sized (about 208 square metre) older weatherboard home having been updated and presenting well.




Address 71 RIVERSIDE DR, NARRABRI 2390, AID 131301, PID 2855830

CD: 19-Aug-2014 PP: 230,000 Area: 2 ha

Sale summary Vacant rural residential sized allotment located about 3 kilometres south of the main town centre in the Riverbend Estate. The location is favored by the Narrabri township however it is, as the majority of Narrabri, still subject to flooding. Zoned R5 Large Residential. This zone is intended to be used for the purposes of providing residential housing within a rural setting and also allows for low density housing. Gently sloping, rectangular shaped, small rural residential allotment with Namoi River frontage. Riverside Drive is bitumen sealed and provides sound vehicular access. Electricity, town water, septic and telephone are all available for connection. The block has been improved during the last ten years with a house pad, driveway, bore and drip irrigation system to about 100 trees. Open market transaction marketed through Davidson Cameron & Co Narrabri.


Less


Analysed LV 220,000


Address 99 RIVERSIDE DR, NARRABRI 2390, AID 132186, PID 2855834

CD: 05-Mar-2015 PP: 655,000 Area: 2 ha

Sale summary Improved rural residential sized allotment located about 3 kilometres south of the main town centre in the Riverbend Estate. The location is favored by the Narrabri township however it is, as the majority of Narrabri, still subject to flooding. Zoned R5 Large Residential. This zone is intended to be used for the purposes of providing residential housing within a rural setting and also allows for low density housing. Gently sloping, rectangular shaped, small rural residential allotment with Namoi River frontage. Riverside Drive is bitumen sealed and provides sound vehicular access. Electricity, town water, septic and telephone are all connected. Improved with a circa 2000 4 bedroom, 2 bathroom brick and iron roof dwelling with wrap around verandah. Includes a detached brick garage, pergola/outdoor entertaining area, pump, garden/pump shed and solar system. Fenced with established tress and lawns and watering system. Marketed through Len Sevil Real Estate.


Less

Main 235 m² @ 1,350/m² 317,250

OV 200 m² @ 350/m² 70,000

Garage 36 m² @ 600/m² 21,600

Solar 5,000


Analysed LV 221,150


Comments

Properties are located in the popular Riverbend Estate; a rural residential and large lot residential subdivision about 3 kilometres south of the main town centre. Being identical in size and very similar in location the vacant and improved sale show a similar analysed land value of $11/m2 and $11.06/m2. The improved sale shows about $1,350/m2 on the main which represents a rate for a larger (235 square metre) modern brick dwelling in good condition.




Address 19 CUNNINGHAM CL, NARRABRI 2390, AID 131173, PID 3152060

CD: 11-Aug-2014 PP: 110,000 Area: 1000 m2

Sale summary Vacant residential allotment located about 2.5 km south of the Narrabri town centre in an established good quality residential location near the beginning of the Riverbend subdivision. Located in the 20 year flood area in the RU1 Residential zone which allows for low and medium density housing provisions. This zone also allows for other residential accommodation type uses with development consent from council. Most of the Narrabri residential areas are affected by flooding and new buildings need to be constructed above flood levels in accordance with the Narrabri LEP 2012. Gently sloping irregular shaped chocolate clay block at the end of the cul de sac facing the East. Slightly elevated from road level providing a sound building site with no obvious drainage problems. Bitumen sealed road providing sound vehicle access with kerb and guttering. All town services are available. Improved with Colorbond fencing, gravel drive, tank, lawns, trees and watering system. Open market transaction through Reg Gilbert Real Estate. An older sale in August last year which appears on the stronger side of an acceptable market value range.


Less

Colorbond fencing, drive, lawns, trees, tank and watering system

10,000

Analysed LV 100,000


Address 19 HILLAM AVE, NARRABRI 2390, AID 132026, PID 2658785

CD: 19-Nov-2014 PP: 360,000 Area: 835 m2

Sale summary

Located about 2 kilometres south east of the Narrabri CBD in what is considered to be an above average neighbourhood close to the Riverbend Estate. Zoned R1 General Residential. Subject to flooding. Dwelling above 100 year flood level. Level, slightly irregular shaped block consisting of chocolate soils with satisfactory access and drainage. Hillam Avenue is bitumen sealed and provides sound vehicular access. Town services connected. Improved with a circa 2006 brick and Colorbond roof two storey detached dwelling comprising 3 bedrooms, 2 bathrooms, sunroom and garage under the main roof line. The home is quite well appointment and presents well. The main is on the first floor and includes a sitting area, ensuite and balcony. Ancillary includes garden shed, 2,500 gallon poly tank, Colorbond fencing, stencilcrete drive and basic lawns. Open market transaction through Davidson Cameron Real Estate.


Less

Main 158 m² @ 1,450/m² 229,100

Outdoor 14 m² @ 800/m² 11,200

Garage 21 m² @ 800/m² 16,800

Ground Improvements

8,000

Analysed LV 94,900


Comments

19 Cunningham Close shows an analysed land value of about $100,000 or $100/m2. The sale of nearby 19 Hillam Avenue shows an analysed land value of about $95,000 or $113.61/m2. 19 Hillam is a smaller site of 835 square metres compared to 1,000 square metres, which is represented in the higher analysed land value on a rate per square metre basis. The main building area of $1,450/m2 on the 19 Hillam Avenue sale represents a rate per square metre on a medium sized (about 158 square metres), modern, well appointment brick home presenting in good condition.



5.2.4. Paired Sale No. 4

Address 27 REGENT ST, NARRABRI 2390, AID 132195, PID 3662330

CD: 02-Jun-2015 PP: 107,000 Area: 1140 m2

Sale summary Vacant allotment located east of the main town centre in the new Council owned subdivision known as the Shannon Estate. Central location. Zoned R1 Residential. Subject to flooding. Gently sloping rectangular shaped corner allotment with bitumen sealed road access and all town services available for connection. Surrounding development comprises new residential homes and unit development interspersed with vacant land. Marketed through Integrity Reality who offer house and land packages. Supportive of underlying land values.


Less

Nil

Analysed LV 107,000


Address 41 GIBBONS ST, NARRABRI 2390, AID 132017, PID 2658541

CD: 19-Dec-2014 PP: 340,000 Area: 1012 m2

Sale summary Improved property located in a sound residential location about 1.2 kilometres south of the post office. Within walking distance of the CBD, high school and hospital. Subject to flooding. Zoned Residential. Power, water, bottled gas, telephone and sewerage connected. Gibbons Street is bitumen sealed, kerbed and guttered. Improved with a circa 1950-60s average sized mid set brick, weatherboard and iron roof dwelling. Includes front verandah and rear enclosed sunroom. Features a 2011 kitchen with cork flooring, main bedroom with sleepout and split system, built ins throughout, laundry with second WC and solar. Ancillary includes an old shed/single garage with power connected. Fencing, concrete drive, tank, BBQ area, fruit trees, average lawns and gardens. Marketed through Davidson Cameron Real Estate.


Less

Dwelling 146 m² @ 1,250/m² 182,500

OV 49 m² @ 700/m² 34,300

Shed 25 @ 80/m2 2,000

Solar 5,000


Analysed LV 108,200


Comments

Regent Street and Gibbons Street are both located close to the main town area. Regent Street forms part of a new residential subdivision. Gibbons Street is a favoured and established residential location. Both are of a similar residential block value. The main building area of $1,250/m2 on the 41 Gibbons Street sale represents a rate per square metre on a medium sized (about 146 square metres), updated older weatherboard home in average condition overall.




Address 403 KAPUTAR RD, NARRABRI 2390, AID 131303, PID 2931664

CD: 19-Dec-2014 PP: 132,000 Area: 2 ha

Sale summary Gently sloping, regular shaped battle axe allotment consisting of red clay to sandy type soils. There is a right of way dirt access from Kaputar Road. Sales contract noted electricity was to be connected prior to settlement. Open sale with agent selling with discounted commission. Sale supports existing value.


Less

Nil

Plus sale adjustments

Agent sold with $3,000 reduction on commission 3,000

Analysed LV 135,000


Address "AMARILLA", 723 KAPUTAR RD, NARRABRI 2390, AID 131978, PID 2656193

CD: 02-Mar-2015 PP: 334,000 Area: 2 ha

Sale summary Located on the popular Kaputar Road, east of the main town centre. Regular shape, gently sloping block consisting of red clay to sandy type soils. Block is all cleared. Serviced with power, phone, septic, bore water. Improved with a c1990’s modern transportable (Austam style) residential dwelling of fair to average presentation only. Property was sold in the open market and supports current value levels.


Less

Dwelling 106 m² @ 1,250/m² 132,500

Verandah 77 m² @ 700/m² 53,900

Slab, bore, tank 15,000

Analysed LV 132,600


Comments

Properties located along Kaputar Road, a popular rural residential and rural lifestyle location situated to the east of the town. Similar sized allotments located along the Kaputar Road with a similar analysed land value and rate per square metre.The main building rate at $1,250/m2 represents a rate per square metre on a small (about 106 square metre) modern Austam type of dwelling of fair to average presentation only.




Address 403 KAPUTAR RD, NARRABRI 2390, AID 131303, PID 2931664

CD: 19-Dec-2014 PP: 132,000 Area: 2 ha

Sale summary Gently sloping, regular shaped battle axe allotment consisting of red clay to sandy type soils. There is a right of way dirt access from Kaputar Road. Sales contract noted electricity was to be connected prior to settlement. Open sale with agent selling with discounted commission. Sale supports existing value.


Less

Nil

Plus sale adjustments

Agent sold with $3,000 reduction on commission 3,000

Analysed LV 135,000


Address 121 HAIRE DR, NARRABRI 2390, AID 131942, PID 2835350

CD: 17-Apr-2015 PP: 650,000 Area: 2.0099 ha

Sale summary The property is located 8 kilometres north east of Narrabri off Kaputar Road. This is considered a good rural residential location. A gently sloping, regular shaped block consisting of lighter red clay to sandy type soils. There is satisfactory access and drainage. Haire Drive is bitumen sealed and provides sound vehicular access. Services include electricity, plus 3 phase power, solar power, bore and rain water, telephone, septic, sealed road and postal services. Improvements include a 4 bedroom, 2 bathroom brick veneer and Colorbond dwelling, outdoor areas and a Colorbond shed. The property is in very good condition throughout and has extensive gravel roads, landscaped gardens, watering systems and fencing. Sale supports general rural residential values, though does indicate that the well improved property in this location is on par with the better rural residential blocks around Narrabri, as such handcrafting in this area has occurred with a value of $140,000 adopted for the subject.


Less

Dwelling 211 m² @ 1,600/m² 337,600

Garage 37 m² @ 950/m² 35,150

Verandahs 85 m² @ 700/m² 59,500

Shed 90 m² @ 350/m² 31,500


Analysed LV 141,250


Comments

Properties located along Kaputar Road, a popular rural residential and rural lifestyle location situated to the east of the town. Similar sized allotments located along the Kaputar Road with a similar analysed land value and rate per square metre. The main building rate at $1,600/m2 represents a rate per square metre on a medium to larger (about 211 square metre) well appointment brick dwelling of very good presentation.



5.3. ADOPTED RESIDENTIAL ADDED VALUE/COST GUIDE

From an analysis of market data from building quotes and paired sales along with reference to Rawlinsons Australian Construction Handbook, the following table illustrates the average range of costs for different construction types. It is noted that most building quotes obtained are higher than that provided in Rawlinsons.

Residential Added Value Guide

Age Construction Condition Size Added Value

2000-2015 Brick / Brick Veneer Basic - Prestige 90 350 $ 1,000 $ 3,840

1980-2000 Brick / Brick Veneer Basic - Prestige 90 350 $ 850 $ 1,350

1960-1980 Brick / Brick Veneer Basic - Prestige 90 350 $ 750 $ 1,250

2000-2015 Weatherboard/Iron Basic - Prestige 90 350 $ 1,100 $ 2,660

1980-2000 Weatherboard /Iron Basic - Prestige 90 350 $ 1,000 $ 1,250

1960-1980 Weatherboard /Iron Basic - Prestige 90 350 $ 800 $ 1,250



2000-2015 Fibro/Iron Basic - Prestige 90 350 $ 1,000 $ 1,250

1980-2000 Fibro/Iron Basic - Prestige 90 350 $ 900 $ 1,150






6. MAIN FEATURES OF THE MARKET & SIGNIFICANT SALES

6.1. MARKET FEATURES

6.1.1. Residential & Villages

The Narrabri residential market eased through 2014 with reduced sales numbers and a levelling of value levels. This has followed some significant growth in the previous few years. The market through 2015 has generally shown a continuation of a market with a steady flow of sales with little movement in value, though there has been some high and some low sales which provides some conflicting evidence.

There have been no new residential estates released in the 2014 base date year. The most recently released residential estate, the Shannon Estate east of the railway line has seen another handful of sales. The estate was initially popular, lost interest when it was inundated with storm water and then slowly regained interest. Land is still available and there are now complete dwellings and townhouses in the estate. Sales evidence is a little inconsistent in this subdivision with building heights and subsequently building costs varying.

Although we have seen some good sales the upper end of Narrabri’s residential market has generally been slow for the last three years.

The Wee Waa residential market saw some improvement over 2012 reporting period, with values steadying and the volume of sales slowing since this time and not returning to levels pre 2008. The drivers of this market continue to be the local economic and seasonal conditions.

The Boggabri residential market experienced low volume of sales transactions since previous Base Date showing no significant market movement. Available sales evidence demonstrates a two-tier market due to the impact of mining activity.

There has been no sales over 2015 base date year in the large lot residential allotments in the Wee Waa area, though there is only a limited number of properties in this zoning. This component has been kept at a factor of 1.0 in line with similar components in the area.

Smaller villages are mainly affected by the prosperity or otherwise of the surrounding rural areas, with the rural outlook largely affected by seasonal conditions, which have been generally dry. Sales in such village markets often take place in the absence of an agent and can be variable. Additionally sales can appear distorted, however this is due to values coming from a low base, causing a high variance in the factor. Over this reporting period the villages of Edgeroi and Bellata have remained quite steady, whereas the villages of Gwabegar and Pilliga have shown some strengthening in values.

The village of Baan Baa saw no market sales during the base date year, this following reduced activity in the 2014 base date year from quite an active village market. Activity in Baan Baa is very much linked to the mining activity in the area.

6.1.2. Rural Residential

In line with the Narrabri residential market demand has eased however the market remains steady in terms of value. The Highfield subdivision, located approximately 8 kilometres south west of the town centre continues to sell and minor rural residential subdivisions have continued in and around Narrabri and the 2-10 hectare sites close to Narrabri generally have continued to sell well. Kaputar Road remains a favourable location.



There has been no movement in the Wee Waa area of rural home sites with limited entries available.

This class of property generally commands steady interest due to the lifestyle attributes they provide and relative proximity to town(s) and services. There has been limited activity stemming from first home owners, due to the relatively high cost of building (thus total development costs), limiting affordability.

6.1.3. Commercial

The commercial market in Narrabri is predominately owner occupied. The market has remained steady. In Narrabri’s main commercial component; BNA, there were some high sales from very motivated purchasers buying neighbouring properties. Overall an analysis of the sales in the component supported the existing land values with no open sales indicating a change in value levels.

Sales in Narrabri’s mixed commercial component; BNB, generally indicated level values. There were two higher sales which were identified as having reason for an increase in land values though did not suggest a general increase in the component. These properties have been handcrafted to reflect the evidence of a generally level market.

Sales in Wee Waa’s mixed precinct of residential, industrial and commercial property showed signs of improvement during this reporting period, with the BWB B4 Mixed Commercial component subsequently being lifted by 10%. This has stemmed mainly from better local economic conditions, including some improved seasonal conditions over this time.

6.1.4. Industrial

The Narrabri industrial market is predominately owner occupied.

There has been very limited industrial sales overall in Narrabri through the 2014 base date year and even more so in the 2015 base date year. The majority of the sales that have happened indicate a reasonably level market with no evidence of significant value changes.

In Narrabri’s general industrial component; INA, during the 2014 base date year, there were two open sales. These sales provided sound evidence for land values which resulted in the adoption of a factor of 1.0 being adopted for the component. The analysis of the two sales showed high factors though this was more relative to the previous values being out-of-line due to land improvement and combining of land values. During the 2015 base date year has seen no sales in this component. In line with wider sales evidence in the town a factor of 1.0 has been adopted.

During the 2014 base date year, Narrabri’s light industrial component; INB, saw only two open sales located in the main town area. 26 Denison Street had an old house. 55 Doyle Street had a house has well as a shed which had been used for commercial/light industrial purposes. The 2015 base date year saw only one open sale located on the edge of the main town area being 60 Fitzroy Street. This was a private sale between two parties and considered a low sale.

There was only a lightly sprinkling of industrial sales in Wee Waa, with the components of BWB, IWA and IWB being lifted by 10%, following some stronger sales over the previous 12 months. This improvement is mainly due to some improved seasonal conditions over this time. Whereas



the improvement seen in the 2013 base date year, was mainly attributed to the broader spill over effects of mining on the local economy.



6.1.5. Rural

There has been a relatively low volume of rural sales, with sales evidence available generally indicating that values are remaining steady. This year we have left the factors of the components at 1.0. We have continued to change some values through verification.

The season this year has been variable with a good season to the east and once again a dry season to the west. The values to the west have still remained relatively strong even though conditions have been poor to variable.

The yields to the east appear to be good again which will keep values up. This country has remained consistently yielding well and therefore the $2,000 plus an acre is going to remain the price for better eastern country.

The change in land use remains the biggest change in value and as these changes are picked up though verification the values will be changed.

The irrigation market appears to be remaining steady even though conditions are going to be tough again. There will be limited to no water for this summer which will affect returns. The price of cotton at $500 bale is good but water remains the limiting factor. We expect with strong underlying land values the value for irrigation will remain unchanged.

Water prices are remaining steady even with no water in account.

The recent improvement in the cattle prices which is now held up for quite some time and is expected to hold up given the low cattle numbers and the pressure that will be placed on the market by breeders once the drought conditions in Queensland ease. This has certainly increased interest in grazing and the mixed farming properties and it is expected that there will be some increases in value in this area in short term.

The mines have completed most of their purchasing for the mine site and for biodiversity offset although there may still be a number of purchases as a result of the level of noise or dust affectation.

6.2. SIGNIFICANT SALES

Value levels have remained relatively stable during the 2015 base date year and there are no significant sales to report.



7. OVERVIEW OF VERIFIED LAND VALUES

7.1. RISK RATING BASIS

Details of numbers and percentages of properties verified in each risk rating have been provided in the following table:

Code Description No. Ver %1 SHOPPING 0 01 CONTAMN 3 31 ENGLOBO 0 01 MINE 8 81 HIGHVALU 33 331 BENCHMRK 162 1621 OBJECT 8 81 ANLYSALE 210 210

424 423 99.8%

2 COMMERCE 393 5892 INDUSTRY 47 1502 RURAL 1153 16292 HERITAGE 21 262 LVBASIS 189 682 ALLOWNCE 54 11

2758 1663 60.3%

3 RESIDENT 3624 8023 OPNSPACE 162 10

3786 812 21.4%

7.2. COMPONENT BASIS

The following list is of components reviewed as part of the annual program: Code Zone Description Review Date

VPA RU5 VILLAGE OF PILLIGA 22-Dec-14

RRY RU1 YARRIE LAKE 11-Aug-15

RBL RU1 BOGGABRI LIFESTYLE BLOCKS 5-Aug-15

RRC RU1 MIXED FARMS BOGGABRI – MAULES CREEK 5-Aug-15

RRG RU1 UNDULATING TO HILLY GRAZING 2-Aug-15

RNC RU1 RU1 SITES CLOSE TO NARRABRI – NO DWELLING ENTITLEMENT 31-Jul-15

RNE RU1 HOMESITES <10 HA – CLOSE TO NARRABRI 31-Jul-15

RRA RU1 SCRUB BLOCKS SOUTH OF NARRABRI 31-Jul-15

RRB RU1 SANDY SOILS BOGGABRI – BAAN BAA 31-Jul-15

RSA RU1 MISCELLANEOUS SITES (NO DWELLING ENTITLEMENT) 7-Jul-15

SOE RE2 PRIVATE RECREATION 1-Jul-15

AWA R1 WEE WAA RESIDENTIAL 12-Feb-15

IWA IN1 WEE WAA I1 GENERAL INDUSTRIAL 12-Feb-15

BNB B4 NARRABRI B4 MIXED COMMERCIAL 3-Jul-15

BNA B2 NARRABRI B2 MAIN COMMERCIAL 30-Jun-15

BNC B1 NARRABRI WEST B1 NEIGHBOURHOOD CENTRE 24-Aug-15



8. OBJECTION & REASCERTAINMENT

8.1. METHOD FOR REASCERTAINMENTS

Reascertainment will apply where values of either an individual or a cluster of parcels appear to be out of line with surrounding values. In the case of minor differences it will be adjusted within the next valuation program however in case of major errors details of the properties including a commentary as to why such re-ascertainment is needed be forward to the District Valuer for approval.

Our methodology used is demonstrated below, whereby a selected number of properties both within the towns and villages, have been used to support the vacant land sales.

8.2. METHOD FOR OBJECTIONS

Objections are identified by Govval when supplementary downloads are conducted. Land values amended on objection are identified with a Land Value Authority of 35B. Valuers have access to Valnet 2i where the objection reports can be obtained. When objections are identified, they are reviewed to determine their effect on land values including the grading and consistency with surrounding or similar properties. As part of the review process, holdings identified as having incorrect values are reascertained with correct values applied.

There were a total of 14 objections for the 2015 Base Date year of which 6 were allowed, as shown in the table below.

Property Zone Latest Event Old Land

Value New Land

Value

2659234 B2 Objection allowed with a change to value $191,000 $178,000

2657114 R1 Objection allowed with a change to value $20,100 $17,100

3159456 RU1 Objection allowed with a change to value $3,220,000 $3,000,000

2654787 RU1 Objection allowed with a change to value $85,800 $70,000



2655612 R5 Objection disallowed $235,000

2653507 RU1 Objection disallowed $916,000





2654904 RU1 Objection disallowed $2,030,000

3482570 RU1 Preliminary report issued - disallow $609,000

Any issues that have arose with the objections allowed are discussed in detail below.

PID 2659234 Following the objection, the property value was increased to $190,000 upon verification. Support of value shown in the sale of 99 Maitland Street, which is a larger, similar shape block 2 doors up from subject property (which would be a slightly inferior location if anything). As with the large majority of property types the rates ($/m2) increase as the size of the property decreases. Please see additional supporting evidence in the following table.



Property CD PPAnalysed

LVArea

($/m2)Rate

($/m2) FrontageRate($/m)

85 Maitland St 17/10/2014 $385,000 $207,450 569.1 $365 8.522 $24,343

Larger site in inferior commercial block though good corner position with 3 street frontages.

86 Maitland St 4/07/2014 $283,000 $121,850 461.6 $264 9.114 $13,370

Larger site in inferior commercial block.

99 Maitland St 23/01/2015 $550,000 $264,800 379.4 $698 6.591 $40,176

Larger block, comparable location and shape. Very good evidence.

Subject $190,330 271.9 $700 5.575 $34,140

Value out of line. Considered value rate of $700/m2 adopting value of $190,000.

PID 2657114 Value reduced from $20,100 to $17,100. We do disagree with the objection, however, we will review this as further sales evidence comes through.

PID 3159456 Value reduced from $3,220,000 to $3,000,000 upon objection.

PID 2654787 Following the objection, the property value has been increased to $80,000 upon verification. The value should not have been reduced on objection. Supporting evidence provided by the sale of PID 3859471 and PID 2654633. PID 3859471 sold for $100,000, this property is on Westport road and is all scrub. PID 2654633 is a much smaller area of poor country, a little closer to town.

PID 2655604 Value reduced from $253,000 to $225,000. There is a discrepancy with our 2013 LV showing a value of $230,000 and 1.0 factor.

PID 2654983 The previous value has been adopted following the objection. Pertinent sales providing supportive evidence include Beans Plains directly opposite, Greenacres and Montrose.



9. STATISTICAL ANALYSIS

9.1. OVERVIEW

A full statistical analysis is provided in the VAR Quality Control Report. The first of the checks is the co-efficient of dispersion (COD). This is used to measure the uniformity of land values relative to prices. In regard to the standard of 0.15 or less, all zones are within the statistical requirements as set out in the procedures manual, with the exception of the following RU5 Village zone.

RU5 Village (23%) There is a large variation in the village component of VGA. The variation in the uniformity of value levels relative to sales in this component is due to the limited and varied sales evidence in this small village. We are reluctant to lift the component by any more than 20% due to the spasmodic nature of sales in remote villages such as Gwabegar and because such villages are tied to the rural outlook. We will continue to monitor any growth in this component, as further more reliable sales evidence that are considered to be market indicators become available. This variance is mainly caused by values coming from a low base, causing a high variance. See COD component level, for details of sale properties affecting this result.

The second statistical measure is the mean price ratio. This measures the accuracy of values relative to sale price. The MPV standard is between 85% and 100%. With regard to the MVP requirements for Narrabri Shire, all zones are within the statistical requirements as set out in the procedures manual, with the exception of RU5 Village.

RU5 Village (83%) This high variance is caused by the village component of VPA. The sales affecting this result are the very strong sales of PID2656040 and PID3256806, in line with this we have moved this component by a factor of 1.20. We are reluctant to move the component any more than this due to the spasmodic nature of sales/ values and because it is tied to the rural outlook of the area. Rather, we will continue to monitor this component for further reliable evidence showing growth.

The VBA component sale of PID 2653544 also contributes to the variance. The sale supports growth however it is a private sale connected with the sale of 5 Baranbah and considered a strong sale. During the 2015 base date year there have been no sales in this component. The Baan Baa residential property market has flattened and without having sufficient reliable evidence to increase the underlying land values we have adopted a factor of 1 and will continue to monitor movement in this component upon the availability of reliable sales evidence. This component has increased substantially by 70% over the last 3 years.

The third statistical measure is the price related differential PRD that measures the vertical equity of valuations i.e. the extent to which high and low value properties are assessed uniformly relative to the sales data. The standard for PRD is a result between 0.98 and 1.03. These requirements were met except for the RU1 zone.

RU1 Primary Production (1.064) This variance is caused by RRF and RRY components. The RRF component is showing a high result, indicating that high valued properties are undervalued relative to low valued properties. There have been some stronger sales, however, we are reluctant at this time to adjust these values upward, as we have just come out of a prolonged dry season.



Whilst current conditions are better and we would like to see this on a more ongoing basis, before increasing the component. In terms of RRY is showing a low result, indicating that valuations are progressive, in that high valued property are overvalued in relation to low valued properties. The main sale affecting this result is over PID3829429. We will continue to monitor this component for further reliable evidence showing any increase in growth (see details of properties causing variance at PRD component level).

Please note, whilst a zone or component may meet a statistical requirement, those entries showing some variance also have explanatory comments in the VAR report, section 2.1.4.



10. SIGNIFICANT VALUE CHANGES

10.1. CHANGES FROM PREVIOUS YEAR

Summary of significant value changes which fall 40% outside of the actual factor variation of the component factor.

Zone/ Comp PID LT Value

Future Value

Calc’d Factor

Comp’t Factor Variance Notes

B2/BNA 2658196 169,000 238,000 1.408 1.000 40.8% Land value increased upon verification, previous value too low. Future LV supported by the sale of PID 2659243 and PID 2659236.

B4/BNB 2657992 90,000 150,000 1.667 1.000 66.7% Value increased during verification process. After consideration of sale of neighbouring PID2657992 value increased to $140,000. The new value considers a reduction for some rural zoning.

B4/BNB 2657993 90,000 140,000 1.556 1.000 55.6% Value increased upon verification. Property identified as having a comparatively low land value. Sale of neighbouring PID2657992 supports new land value of $140,000 which provides a reduction for some rural zoning.

R1/ANA 2659475 30,600 65,000 2.124 1.000 112.4% Land value increased based on the vacant land sales of PID 2659475 and PID 2659478 - each for $73,000, varying in size.



R1/AWA 2656752 13,800 21,000 1.522 1.000 52.2% Value has been increased, as supported by the sale of PID2656993, being vacant land in proximity to the subject. Land area 1,568 sqm LV $23,000. Indicative of area of value.




Future Value

Calc’d Factor


R5/RNA 3632933 49,500 13,500 0.273 1.000 72.7% Sale. No dwelling entitlement. Purchased with adjoining 2 hectare site with a dwelling entitlement. Underlying land value too high. See analysis of multi-sale; PID 3632936. Supportive of decrease in land value.

RU1/RBL 2653701 4,210 15,000 2.563 1.000 256.3% Verification. Property has an existing dwelling. Previous value too low. Value increased accordingly. Sale of PID 2653637 and PID 2653554 provide supportive evidence.

RU1/RBL 2653708 4,210 10,000 2.375 1.000 137.5% Verification. Property has an existing dwelling. Previous value too low. Value increased accordingly. Sale of PID 2653637 and PID 2653554 provide supportive evidence.

RU1/RBL 2653795 37,400 20,000 0.535 1.000 46.5% Verification. No existing dwelling. Value decreased accordingly. Sale of PID 2930151 provides supportive evidence.

RU1/RBL 2654202 93,700 33,700 0.360 1.000 64.0% Verification. Small rural holding located on the edge of residential zoning. Majority of the sight appears to be flood liable with limited development potential. LV was high relative to surrounding sites and decreased accordingly. Sale of PID 2653840 and PID 2930151 provide supportive evidence.

RU1/RBL 3788639 55,000 80,000 1.455 1.000 45.5% Verification. Property has an existing dwelling. Previous value too low. Value increased accordingly. Sale of PID 3788639 provides supportive evidence.

RU1/RNC 3375064 123,000 230,000 1.870 1.000 87.0% Land value increased in line with analysed sale. Appears the underlying land value was far too low. Limited amount of this type of property available and subsequently a




Future Value

Calc’d Factor


limited amount of comparable sales evidence throughout the years.

RU1/RRB 2656290 233,000 339,000 1.455 1.000 45.5% Verified. Prior value too low. Evidenced by sale of PID 2657398 and PID 2653622.

RU1/RRB 3190342 103,000 150,000 1.456 1.000 45.6% Verified. Prior value too low. Evidenced by sale of PID 3056254 and PID 3612220.

RU1/RRE 3542589 1,920 3,510 1.828 1.000 82.8% Relatively small land area. Land used now all cultivation. Increase to land value, as part of our verification. Sales of this nature are restricted, with value based on a rate/ha basis, in line with similar property to the surrounds (rather than a nominal value). Indicates Cultivation @ $2,170/Ha

RU1/RRF 2653652 6,700 12,100 1.806 1.000 80.6% Property has been verified on a rate/ha basis, with the value increased in line with surrounding values. Shows $2,650/Ha timbered grazing. The sale of PID3416483 provides some supportive evidence that value should be increased.

RU1/RRF 2653749 15,000 40,000 2.667 1.000 166.7% Due to the building entitlement the property has sold for block value as against dollars per hectare and as such reaches a higher price level than as a farming block only. Following this sale the land value has been increased. Land value is in line with similar type property, on a block value basis.

RU1/RRF 2655581 57,800 100,000 1.730 1.000 73.0% Valued as a block value. Supported by the sale over PID2653749 (4.1Ha LV $40,000 2015BD), being inferior to subject.

RU1/RRF 3140771 77,500 116,000 1.497 1.000 49.7% Relatively small holding. Value increased through verification. Valued as a rate/ha basis, based on




Future Value

Calc’d Factor


properties of this nature to surrounding components. Indicates Cultivation @ $3,200/Ha.

RU1/RRG 2653620 150,000 284,000 1.893 1.000 89.3% Heavy timber 504.39ha @ $250, mixed farming/grazing 158ha @ $1,000, adopt $284,000. Property includes mining Licence 407530.

RU1/RRG 3607123 36,500 14,600 0.400 1.000 60.0% Heavily timbered block with poor access. Base level of $100/ha adopted. Base value of $14,600. Analysed land value in the area for heavily timbered country has had a base of around $250/ha; these areas are associated with other better country and have superior access. There is no recent evidence for this type of block though it would be expected to attract limited interest in the market.

RU1/RRP 3710558 50,600 30,200 0.597 1.000 40.3% Value agreed with adjoining contractor. Section 28 valuation.

RU1/RRY 2654562 263,000 380,000 1.445 1.000 44.5% As part of verification, this property's previous value appeared low as compared to surrounding properties of this nature. This increase in value is supported by the sale over PID3042283.

RU1/RRY 2656516 135,000 202,000 1.496 1.000 49.6% Holding verified at $1,000/ha for cultivation/grazing, but could be valued more as a block value. Some supportive evidence provided by sale over PID2655850. Secondary evidence only.

RU1/RRY 2821370 24,400 35,000 1.434 1.000 43.4% Block Value $35,000. Supported by the sale over PID2654387. This is a smaller site, but better located at Bohena Creek, being situated just to the south of Narrabri. Indicative of area of value, supporting an increase in value.

RU1/RSA 2653871 291,000 144,000 0.495 1.000 50.5% Holding has been recently




Future Value

Calc’d Factor


verified and value reduced. Land has specialised use, being part of the Boggabri Golf Club. Value appears a little high as compared to surrounds. There are no market sales in this component to support (and unlikely to be any also). Value based on surrounding values and relative to other properties in this component. 36Ha @ $4,000/Ha = $144,000

RU1/RSA 2654814 33,700 150,000 4.451 1.000 345.1% Value increased, as part of verification. Property is part of Graincorp Bunkers. Value appears a low. This entry has been previously valued in line with rural components on a rate/Ha. Valued as a block value. There are no market sales in this component to support (and unlikely to be any also). Value based on surrounding values and relative to other properties in this component and of this nature. Adopt a block value of $150,000.

RU1/RSA 2654877 33,700 150,000 4.451 1.000 345.1% Value has been verified. Property is part of Graincorp Bunkers. Value appears a little low. his entry has been previously valued in line with rural components on a rate/Ha. Valued as a block value. There are no market sales in this component to support (and unlikely to be any also). Value based on surrounding values and relative to other properties in this component and of this nature. Adopt a block value of $150,000.

RU1/RSA 2655852 30,600 50,000 1.634 1.000 63.4% Holding has been verified and value increased. Property is part of Graincorp Bunkers. Value appears a little low. This entry has been previously valued in line with rural components on a rate/Ha. Valued as a block value.There are no market




Future Value

Calc’d Factor


sales in this component to support (and unlikely to be any also). Value based on surrounding values and relative to other properties in this component and of this nature.

RU1/RSA 2657422 10,200 5,000 0.490 1.000 51.0% Value has been reduced. Relatively small, heavily timbered allotment. See PID2655297/SA141315 which indicates grazing/timber at $250/Ha, providing secondary evidence only.

RU1/RSA 2659671 9,480 25,000 2.637 1.000 163.7% Land value has been increased, as part of verification program. No sales in this component to compare. See entry PID2659672 which provides some secondary supportive evidence of value, as a block value.

RU1/RSA 2659677 15,800 5,000 0.316 1.000 68.4% Entry reduced following verification of entry, which is a small holding on Railway Street, with lease over it. Value based on surrounding values. Supported by entry to surrounds PID2659731 which indicates $97.77sqm discounted for leasehold over whole site. Adopt overall block value/ nominal value $5,000.

RU1/RSA 3245766 7,660 1,000 0.131 1.000 86.9% Relatively small site. Nominalvalue applied. Sale over PID3661168 provides some supportive evidence. Sale serves to indicate that values are typically low.

10.2. CHANGES FROM LAST GVAL

It is not a GVal year for this district.



11. QUALITY ASSURANCE

11.1. OVERVIEW

In addition to statistical and data analysis the following quality control checks have been carried out to ensure quality is achieved in valuations and reporting.

Quality Control Checks

All properties have been valued Yes

The land values are consistent with each other Yes

The land value basis has been correctly determined and recorded for each land value Yes

All statutory concession valuations and allowances have been supplied, including: Yes

- Allowances for profitable expenditure on and off the land under Section 14L of the Valuation of Land Act

Yes

- Subdividers allowances under Section 14T of the Valuation of Land Act Yes

- Heritage Values under Section 125 of the Heritage Act Yes

- Mixed Development and Mixed Use Apportionment Factors under Sections 14X and 14BBA of the Valuation of Land Act

Yes

- Coal Allowances under Section 14F(4) of the Valuation of Land Act Yes

- Unutilised value allowances under Section 62K of the Land Tax Management Act Yes

All land value apportionments have been provided and calculations are correct Yes

Land values for those properties that have considerably higher values in relation to the average for a land use and land values of high risk properties have been reviewed and are correct. For example, regional shopping centres, large scale industrial and unit developments, large rural properties etc. The review procedures are to be provided if requested

Yes

Land values that result in substantial changes in valuation parities or unusually large value variations from the last valuations issued for either land tax or council rating have been checked and are correct

Yes

A broad range of market evidence has been analysed and provided in the market report as required by the Contract

Yes

Adjustments and assumptions within the market analysis have been based on market evidence and have been fully documented and rationalised

Yes

Analysed sale properties where the sales ratio does not lie within the range 0.85 to 1.00 have been reviewed and an explanation provided as to why the current land value should be adopted

Yes

A zone/Component code integrity check has been made. Yes

The current and proposed planning controls that affect the valuations have been taken into account

Yes

Where the land value of a property has been amended on objection or reascertainment, the alignment of values with surrounding properties, or properties of a similar property type, has been checked

Yes

Statistical checks and Component Data Tables have been prepared, reviewed and anomalies or results outside the specified parameters have been rationalised and reported

Yes

Land values have been compared to adjusted land values for analysed sales and anomalies have been addressed

Yes

Land values have been compared to all sale prices and anomalies have been addressed Yes

Worksheets have been maintained on all properties where calculations are required Yes



12. DISCLAIMER

The purpose of this report is to describe the process and considerations for the 1 July 2014 General Valuation of Narrabri. 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 purpose 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 Land and Property Information website at www.lpi.nsw.gov.au/valuation.

Peter SpackmanDirector GOVVAL PTY LIMITED

Nicole HubbardValuer GOVVAL PTY LIMITED

Christina DeansContract Services Manager GOVVAL PTY LIMITED

30th October 2015

final report...narrabri shire 2015 govval pty ltd this report is confidential information for the...

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