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Final Report

Local Government Area of

TAMWORTH REGIONAL COUNCIL

BASE DATE: 1 JULY 2016

TAMWORTH REGIONAL COUNCIL 2016 GOVVAL Pty Ltd

Under the provisions of Procedure Manual Version 7

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.

EXECUTIVE SUMMARY

REGIONAL OVERVIEW

Tamworth is the main regional retail and administrative centre for the North and North West area of NSW with retail, office, developing residential and rural farm-let areas in addition to a strong industrial sector. The district comprises 9,893 square kilometres, housing approximately 56,292 residents with 24,232 dwellings (ABS). A majority of the population live in the larger urban centre of Tamworth while the remaining residents reside in smaller rural towns or on rural properties.

Tamworth is a hub for transport linkages with two major highways, a jet standard airport and rail networks. Economic activity is based on serving the surrounding regional area which is underpinned by health care, community services, retail trade, manufacturing, education, mining and a strong rural sector. There are currently over 5,500 registered businesses in the Tamworth Regional Council area. Although not directly adjacent to the mining activity, Tamworth is benefiting from the mining developments in the Quirindi, Gunnedah and Narrabri locations.

VALUATION SUMMARY

The Tamworth Regional Council Local Government Area comprises of residential, rural, commercial, industrial, infrastructure, environmental, and public recreation zoned properties.

27,212 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 issued to owners were for the Base Date 2013. In summary, the value of properties within Tamworth Regional has increased over the last 3 years, with the exception of commercial properties, which have remained stable overall compared with all other asset types.

Valuation changes in the local government area and percentage changes between the Council valuation years of 1 July 2013 and 1 July 2016, and the land tax valuation year of 1 July 2015, are as follows:

Zone Zone Code

No. Of

Properties

2016 Total Land

Value

Prior Annual

Valuation (2015)

%

Change

Prior Local

Government

Valuation

(2013) % Change

Res identia l R1, R2, R5, RU5 21,058 2,429,660,950 2,211,611,500 9.86 2,111,808,970 15.05

Rural RU1-RU6 4445 1,828,835,350 1,645,197,790 11.16 1,640,601,600 11.47

Commercia l B1-B7 785 290,225,500 287,516,300 0.94 283,082,400 2.52

Industria l IN1 IN3 545 166,014,100 151,379,000 9.67 143,410,100 15.76

Infrastructure SP1-SP3 71 33,147,050 30,376,400 9.12 28,171,100 17.66

Environmental E1-E3 70 12,484,200 11,366,600 9.83 11,357,000 9.93

Recreation RE1 RE2 238 32,833,160 29,876,600 9.90 30,002,950 9.43

Total 27,212 4,793,200,310 4,367,324,190 9.75 4,248,434,120 12.82

Properties Valued and Total Land Value




STATE AND LOCAL GOVERNMENT LEGISLATION CHANGES

There has been one (1) amendment to the Tamworth Regional Local Environmental Plan 2010 since August 2015.

Amendment No. 9 was published on the 14th August 2015, involved a slight expansion of the B4 - Mixed Use zoning to include two more properties in Belmore Street.

The Tamworth Regional Development Control Plan 2010 (Amendment No. 10) is the most recent proposal before Tamworth Regional Council and was exhibited in the second half of this year. Submissions have been received and it is now recommended that the Plan be adopted.

There is currently a proposal before Tamworth Regional Council to amend the Minimum Lot Size of a pocket of land to the North of Tamworth, which is zoned R2 - Low Density Residential. The affect of the amendment would be to reduce the Minimum Lot Size required from 4,000 m2 to 2,000 m2 in and around the Windmill Downs estate, and from 2,000m2 to 1,000m2 in some allocated areas to the north of Browns Lane.

MARKET OVERVIEW

We have undertaken significant analysis of the Tamworth Regional property market to provide an accurate and reliable basis of valuation. We have analysed approximately 500 market indicator sales for the 2016 Base Date year 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 Valuation Services (formerly LPI) on a consistent basis throughout the year. The added value of improvements are also analysed to deduce land values with the paired sales and replacement cost approaches undertaken to assist in determining land values.

Both the vacant residential and improved residential markets of Tamworth continue to experience steady and gradual increases. There is medium to strong demand for houses within the range of $250,000 to $350,000 while a slower market exists for houses above $450,000.

The steady supply of vacant land residential properties has continued off the back of strong demand over recent years. Although prices have increased overall, there are indications that overall demand maybe easing with vacant land sale numbers dropping slightly compared to the 2014-2015 period. Nevertheless, land prices remain steady with some areas continuing to experience slight gains.

The commercial market within Tamworth City continues to remain relatively static, which has been supported by more recent sales evidence and the analysis of commercial rental lease agreements. Analysis indicates retention of prior land value levels for the majority of commercial areas within Tamworth. However, adjustments were again required for a small portion of properties within specific commercial localities. The industrial market in Tamworth is currently mixed. Although a large portion of industrial areas have indicated no change in the last 12 months, other areas have shown increases where extensive new developments are occurring. The Glen Artney Industrial area of Tamworth was the exception, however, with good market evidence pointing to an increase in values across the board. Due to the limited availability of industrial land in Tamworth, this area is continuing to prove attractive.




The rural residential market also continues to be mixed. There is still a shortage of small vacant land farm-let blocks in close proximity to Tamworth. All size properties within the rural farm-let property market have shown similar increases to residential areas.

The rural property market within the Tamworth Regional area has turned a corner in the last 12 months. Demand has increased significantly for grazing and cultivation properties due to above average stock prices and favourable weather conditions. The increase in activity has taken the market by surprise with Real Estate Agents reporting the difficulties currently being experienced in regards to obtaining listings.

SALES OF PARTICULAR INTEREST

Significant sales within the Tamworth Regional area include:

PID Address Location Area CD Price

3917788 MIDDLEBROOK

RD GAROO

4049.239 ha

13/05/2016 23,800,000

3961276 LINDSAYS GAP

RD GAROO

3922.392 ha

13/05/2016 20,000,000

3780550 MARATHON ST WESTDALE 246.3 ha 16/12/2015 16,000,000

2769838 17 WHITE ST TAMWORTH 811 m2 11/08/2016 3,625,000

The new Tamworth Woolworths/Dan Murphy’s Eastpoint 1 year old development, located within the Peel Street Core Business area, is also said to have sold at auction in September, 2016 to a Victorian family for nearly $38 million (The Northern Daily Leader - 5 Sept 2016). The property is yet to be settled but would set a new record for retail development sales in the area if and when the sale is completed.

SUMMARY OF CHANGES IN VALUES

Overall Change in Values

Overall, there has been an increase of 9.75% in land values within the Tamworth Regional Council area over the last 12 months. The most significant increases were indicated by rural sales with average increases of approximately 10% to 15%.

Residential

The residential market continued to strengthen with gradual rises over the twelve months to September 2016. The bulk of single residential lands rose from 5% to 15% while some of the outlying village areas experienced a more significant rise.

Commercial

The main Commercial areas of Tamworth remained stable with no significant movement away from 2015 values indicated. However, some values did increase slightly due to the new Tamworth Woolworths supermarket complex located in Peel Street. The retail facility continues to have a positive influence on a handful of commercial properties within the immediate vicinity.




Industrial

Sales of industrial properties within Tamworth were mixed, indicating stable to increasing value levels overall. Within Taminda for example, land values fluctuated from 0 to 10%, depending on location and other market influences.

Rural

The largest increase was evident in rural property sales. The market has strengthened significantly in the last 12 months, having been fuelled by good stock prices (cattle and sheep) and favourable weather conditions. Rural land values have shown significant increases of 15% to 20%, depending on location and capacity.




TABLE OF CONTENTS

EXECUTIVE SUMMARY ........................................................................................................................ 2

1. DISCLAIMER .............................................................................................................................. 7

2. LGA OVERVIEW ........................................................................................................................ 8

3. PLANNING LEGISLATION FOR TAMWORTH REGIONAL COUNCIL ........................................ 11

4. MAIN FEATURES OF THE MARKET & SIGNIFICANT SALES .................................................... 13

5. SIGNIFICANT ISSUES / DEVELOPMENTS ................................................................................ 16

6. SIGNIFICANT VALUE CHANGES .............................................................................................. 17

7. QUALITY ASSURANCE ............................................................................................................. 43

8. AUTHOR .................................................................................................................................. 45




1. DISCLAIMER

The purpose of this report is to describe the process and considerations for the 1 July 2016 General Valuation of Tamworth Regional Council. 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 the appropriate use of mass valuation methodologies that involve assessing large numbers of properties as a group. 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 have 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 Information website www.valuergeneral.nsw.gov.au

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




2. LGA OVERVIEW

2.1. LOCATION

The Tamworth Regional Council Local Government Area is located some 400 kilometres north west of Sydney on the North Western Slopes & Plains. The district is bounded by Gwydir, Uralla, Walcha, Upper Hunter, Liverpool Plains, Gunnedah and Narrabri Shires.

(Source: Tamworth Regional Council Community Profile)




2.2. NUMBER OF VALUATIONS

The following table highlights the total number of valuations undertaken per zone (as at 15/9/2016):-

Zone Num Props

B1 Neighbourhood Centre 29

B2 Local Centre 97

B3 Commercial Core 371

B4 Mixed Use 265

B5 Business Development 22

B7 Business Park 1

E1 National Parks and Nature Reserves 4

E3 Environmental Management 66

IN1 General Industrial 489

IN3 Heavy Industrial 56

R1 General Residential 16,511

R2 Low Density Residential 815

R5 Large Lot Residential 2010

RE1 Public Recreation 216

RE2 Private Recreation 22

RU1 Primary Production 3,165

RU3 Forestry 1

RU4 Rural Small Holdings 1268

RU5 Village 1722

RU6 Transition 11

SP1 Special Activities 44

SP2 Infrastructure 9

SP3 Tourist 18

Total 27,212

2.3. TOWNS

The Council area includes the City of Tamworth, towns of Kootingal-Moonbi, Manilla, Barraba and Nundle and several villages being Attunga, Bendemeer, Dungowan, Duri, Somerton, Woolbrook and Woolomin.

The Tamworth urban area consists of approximately 70% of the population (39,000 residents) with the remaining 30% (17,000 residents) living in smaller towns or on rural properties.

2.4. INDUSTRY

The main industries in the Council area are farming, grazing, irrigation, tourism and industrial associated with the value adding of agricultural products and coal mining.

2.5. SIGNIFICANT RETAIL CENTRES

Tamworth has six (6) major shopping developments, including Tamworth Shopping World, Tamworth City Plaza, Centrepoint and the new recently opened Woolworths/Dan Murphy Eastpoint supermarket development.




2.6. RESIDENTIAL DEVELOPMENT

Several developing and completed Tamworth residential subdivisions have emerged during 2016. Lampada residential estate, which is located within Calala, continues to grow with four more stages released since September 2015.

Stage Four of ‘Bellefields Estate’, which is located within North Tamworth, is currently under development with all blocks within stage Three now having been sold.

Two further stages of Moore Creek Gardens Estate provided a further 25 large residential lots all of which have sold within the 12 months to 30th September 2016.

Hibbards, which is a major land and house developer, are currently developing a new residential estate within North Tamworth. Known as North Ridge Estate, the subdivision is located off Daruka Road with 55 residential blocks planned over staged development.

Also, a new 27 lot subdivision was established in an area of Hillvue, Tamworth, with all but 8 lots contracted for sale up to 12 months prior to the registration of the plan. A second stage development of this estate is proposed to provide a further 58 lots.

2.7. PROPERTY TYPES

The Tamworth Regional area encompasses approximately 9,893 square kilometres with a majority of the land used for agricultural purposes.

2.7.1. RESIDENTIAL

Residential subdivisions have grown significantly over recent years and continue to be developed, offering fully serviced Lots varying in size from about 600m2 to 2000m2. Average prices within new Tamworth residential subdivisions typically range from $110,000 to $150,000 with better quality lots up to $200,000

2.7.2. COMMERCIAL

Overall, commercial sites in the main Tamworth CBD range from about 100 m2 through to 1000 m2, however there are a number of significant sites such as Tamworth City Plaza and Centrepoint, which occupy site areas of 2.69 ha and 1.20 ha, respectively.

2.7.3. INDUSTRIAL

Industrial sites within the main Taminda industrial estate of Tamworth generally range from 500 m2 to 5000 m2, although some sites are as large as 1 to 2 hectares.

2.7.4. RURAL RESIDENTIAL

There are numerous establishing rural residential subdivisions surrounding Tamworth City, where lots vary in size from 4000 m2 to about 10 ha.

2.7.5. RURAL

Irrigation properties in close proximity to Tamworth range from 20 ha to about 100 ha. Rural farming and grazing properties located throughout the Council area vary from 100 ha to 5000 ha in size.




3. PLANNING LEGISLATION FOR TAMWORTH REGIONAL COUNCIL

3.1 TOWN PLANNING

The Tamworth Regional Local Environmental Plan 2010 provides a broad zoning framework for the area – B1 Neighbourhood Centre; B2 Local Centre; B3 Commercial Core; B4 Mixed Use; B5 Business Development; B7 Business Park; E1 National Parks and Nature Reserves; E2 Environmental Conservation; E3 Environmental Management; IN1 General Industrial; IN3 Heavy Industrial; R1 General Residential; R2 Low Density Residential; R5 large Lot Residential; RE1 Public Recreation; RE2 Private Recreation; RU1 Primary Production; RU3 Forestry; RU4 Primary Production Small Lots; RU5 Village; RU6 Transition; SP1 Special Activities; SP2 Infrastructure., SP3 Tourist.

3.2 DEVELOPMENT CONTROLS

The Tamworth Regional LEP 2010 was gazetted in 2011 with a number of rezoning amendments implemented. In addition to standard planning controls (SEPP, LEP and DCP) Tamworth Regional Council currently have a number of strategies in place.

Zone Minimum Lot Size

Residential/Village 600 m2 (R1)

2000 m2 (R2 and RU5)

4000 m2 (R2 and R5)

1 ha (R2)

2 ha (R5 and RU4)

5 ha (R2)

Rural

10 ha (RU4)

20 ha (RU1 and RU4)

40 ha (E3, RU4, RU6 and RU1)

100 ha (RU1 and E3)

800 ha (RU1)

Commercial

Council Consent Required

Industrial

1000 m2 (IN3)

Council Consent Required

3.3 SIGNIFICANT CHANGES TO THE LEP

There has been one (1) amendment to the Tamworth Regional Local Environmental Plan 2010 since August 2015.

Amendment No. 9 was was published on the 14th August 2015, involved a slight expansion of the B4 - Mixed Use zoning to include two more properties in Belmore Street.

Proposed Changes

The Tamworth Regional Development Control Plan 2010 (Amendment No. 10) is the most recent proposal before Tamworth Regional Council and was exhibited in the second half of this year. Submissions have been received and it is now recommended that the Plan be adopted by Council.




There is currently a proposal before Tamworth Regional Council to amend the Minimum Lot Size of a pocket of land to the North of Tamworth, which is zoned R2 - Low Density Residential. The affect of the amendment would be to reduce the Minimum Lot Size required from 4,000 m2 to 2,000 m2 in and around the Windmill Downs estate, and from 2,000 m2 to 1,000m2 in some allocated areas to the north of Browns Lane.




4. MAIN FEATURES OF THE MARKET & SIGNIFICANT SALES

4.1. MARKET ACTIVITY AND DRIVERS

Residential Improved

Both the vacant residential and improved residential markets of Tamworth are rising steadily. There is medium to strong demand for houses within the range of $200,000 to $350,000. Market activity for houses above $450,000 is slower with extended selling times required occasionally to make a sale. Approximately only 100 sales within this price range occurred in the 12 months to September 2016. In this market range, astute buyers seek the best presented properties.

The residential market continued to strengthen with gradual rises over the twelve months to September 2016. The bulk of single residential lands rose from 5% to 15%. The Surburb of Nemingha had more significant increases of 20%.

Properties in the $200 - $250k range have experienced steady activity, with these properties being more affordable to younger buyers. These buyers are looking for smaller, brick, semi modern homes being well located property. We see some resale(s) of investment properties in the pre $250k market, mainly stemming from out of town investors/speculators. In this $250K - $350,000 range, purchasers are still remaining cautious, seeking a reasonably good location, value for money, with all work completed and not wishing to spend any further funds on improvements. Properties of this nature are selling reasonably quickly.

Investment in the residential market was initially steady into the first half of 2016. An excess of available rental houses in the middle Value Range between $400,000 and $500,000 has resulted in a small easing in corresponding rents for such properties. The lower end of the housing investment market remains strong. This applies to houses within the $250,000 to $350,000 range.

Vacant Land Residential Properties

Demand for vacant residential land in Tamworth has eased slightly during the last 12 months signifying that supply may now be outstripping demand, 2015-2016 sale numbers are down by more than 10% compared with 2014-2015. Nevertheless, many new homes continue to be built in Calala, North Tamworth and the Hills Plain area with many new subdivisions on the fringe of Tamworth continuing to expand.

Sales of residential vacant land have largely been confined to new residential estates generally in the outlying areas of the City of Tamworth with very few sales in older established areas of Tamworth. Increasing prices are largely driven by developers pricing land with pre determined profit margins in mind. In addition demand for vacant land has remained strong partly due to Government incentives that apply to building of new homes.

Rural Residential Market

The rural residential property market has also seen a steady increase in values over the 12 month period to 30th September 2016

This class of property generally commands steady interest due to the lifestyle attributes they provide and relative proximity to town(s) and services. Due to strong demand for these type properties the supply of vacant land in this market is declining and may result in further value increases into the future.




Commercial

Tamworth commercial property rental levels and vacancies have remained similar to 2015 with business remaining difficult. Overall, trading has remained subdued. Any slight increments in rentals, eg CPI, are not always passed on or have been eroded by increases in outgoings. There are several long term commercial retail shop vacancies in the Fitzroy and White Streets section of the CBD due to relocation and cessation of businesses. In light of these findings, Land Values of properties across commercial areas of Tamworth are unchanged with some limited exceptions where small gains have occurred. Adjustments to Land Values were made in some areas to better correlate values and align them to current developments. This applied to properties in proximity to East Point (Woolworths) shopping complex.

Industrial

Although the industrial market in Tamworth remains low in terms of sales turnover, land values within some major localities have increased slightly. For example, sales evidence indicates that a significant portion of land values in the general Taminda and Glen Artney/Goddards Lane industrial areas have increased by up to 5% - 10%.

Rural

The rural residential market continues to be mixed. There is still a shortage of small vacant farm let blocks in close proximity to Tamworth. These types of properties have shown a modest increase in land value due to demand outstripping supply. The larger rural farm let property market has also made modest gains over the past year. This is due to continued demand for vacant land sites up to 40 hectares.

As indicated by sales evidence, values for broad acre properties have risen during the past 12 months with increases as high as 15% to 20% indicated. The rural market has been very active for virtually all land categories. The rural market is now operating under good seasonal weather conditions and all time high stock prices, which are driving the rural property market.




4.2. SIGNIFICANT SALES

Significant sales since July, 2015 in the Tamworth Regional Council area include:

The new Tamworth Woolworths/Dan Murphy’s Eastpoint development, located in Peel Street, is reported to have sold at auction in September, 2016 to a Victorian family for nearly $38 million (The Northern Daily Leader - 5 Sept 2016). The property sale is yet to be settled but would set a new record for retail development sales in the area if and when the sale is completed.

Approximately 246 hectares of mixed industrial/residential & rural zoned land located west of Tamworth was purchased by Tamworth Regional Council in December 2015, for $16 million. There is currently a low supply of industrial vacant land available and the purchase was made to ensure the future growth of this sector.

17 White Street, Tamworth, being a two storey commercial office building, formerly tenanted by Centrelink, sold for $3.625 million in August, 2016. The building was fully tenanted at the time and the sale indicated a net yield of approximately 7.8%.

The highest rural transactions recorded so far this year were 937 Lindsays Gap Road and 1773 Middlebrook Road, Garoo. Both sold in May for $20 million and $23.8 million, respectively. Although both properties had separate vendors, each property was purchased by the same owner, which is said to be a Chinese owned and based company. Although these sales set new records for similar type rural properties, the prices were considered to be high and out of line compared with the general 2016 rural market framework.

.

4.3. SUMMARY OF TYPICAL VALUES UPDATE

Component Code Property & Type Median Value

AAH Hillvue Area - Residential $115,000

AAP Calala - Residential $111,000

AWT West Tamworth - Residential $131,000

AET East Tamworth – Residential $149,000

AOV Oxley Vale - Residential $92,000

CCA Dampier Street – Industrial $195,000

BBA Peel Street – Commercial $406,500

AZK Village Kootingal – Residential $69,500

RRC Irrigation – Rural $9,750/ha

RGA Cultivation – Rural $4,000/ha




5. SIGNIFICANT ISSUES / DEVELOPMENTS

5.1. GENERAL OVERVIEW

Significant developments during 2015- 2016 include:

Completion of the Woolworths Supermarket/Dan Murphy’s development, which recently sold for approximately $38 million.

Registration of 31 Lots, being the 1st stage of the “Outlook Estate” at Calala.

5.2. DEVELOPMENT APPLICATIONS

The following is a summary regarding recent development activity in the Tamworth Regional area. Development Application Data was received from the Tamworth Regional Council on 15th November, 2016.

During the 2015 – 2016 financial year, there were approximately 582 development applications lodged, having an estimated cost of approximately $132 million. Out of these 582 development applications, 405 were for residential purposes including new residential dwellings, dual occupancies and other minor works such as residential alterations, residential additions and sheds.

Other significant developments within the Tamworth Regional area include:

“Outlook Estate” Gordon Street Calala – DA lodged for a $8.3 million 43 unit, community centre and pool retirement village.

Plans for a 60 unit residential development at Calala.

Several new restaurants including a new multimillion dollar restaurant at Goonoo Goonoo Station; new Mexican and Italian restaurants.

Former BWS site in Brisbane Street PP $1,100,000 – DA lodged for a new $5 million 5 storey hotel/car parking development by local company.

Brisbane Street PP $1,600,000 – former multi storey heritage listed Northern Daily Leader newspaper building, DA lodged to redevelop with a top floor and utilise for commercial, restaurant and residential use by a local company.




6. SIGNIFICANT VALUE CHANGES

6.1. SIGNIFICANT VALUE CHANGES FROM PRIOR TO CURRENT ANNUAL VALUATION

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

Zone/Component

PID LT Value Future Value

Calculated Factor

Component Factor

Variance

Explanation

B3/BBC 2938341 50,000 100,000 2.000 1.000 100.0% Previously valued with no building entitlement. Listed on the open market in August 2016 as building permit allowed. LV handcrafted to reflect building entitlement.

IN3/CCG 3780550 5,250,000 12,000,000 2.286 1.102 107.4% Strengthen market since prior Base Date as result from market pressure for creation of new industrial land releases in Tamworth.

R1/AAH 2945252 86,700 168,000 1.938 1.100 76.2% Removals of Transmission Line therefore increase in land value taking into account subdivision potential.

R1/AAL 3464641 11,400 25,000 2.193 1.100 99.4% This site has been verified following identification as drainage reserve therefore valued for specialised public use.

R1/AAL 3464642 2,850 5,000 1.754 1.100 59.5% This site has been verified following identification as drainage reserve therefore valued for specialised public use.

R1/AAN 2755528 9,010 50,000 5.549 1.200 362.4% Previously valued with no building entitlement given physical constraints and excessive costs involved to provide suitable building site. Sold with intention of building a residence confirmed by agent. Therefore significant increase in land value for building entitlement. Refer to sales analysis for further details.




R1/AAW 3775504 1,000 1,500 1.500 1.055 42.2% Low value basis illustrating high factor increase but from direct value perspective nominal value change.

R1/AEN 2765343 500,000 1,000,000 2.000 1.000 100.0% Significant value change taking into consideration development approval following sale of subject. Previously valued with subdivision potential.

R1/AFC 2755024 204,000 400,000 1.961 1.000 96.1% This component has been verified during 2016 Program and changed from AAH Component to AFC. This site was previously valued as single residential home site but reviewed on verification to have development potential as gated community or large strata development.

R1/ANB 2766920 210,000 350,000 1.667 1.098 51.8% Valued with development potential given location and dual road frontage. Previously too low and increased at 2016 BD.

RU1/RDC 1862201 457,000 898,000 1.965 1.100 78.6% This valuation appears to be well below the values applied to other properties in this area. See PIDs 3255570 LV $1,297/ha for 863 Ha. This is better than subject 3308521 LV $857/ha for 965 Ha. This is better than subject (best of subject land is comparable remaining third is inferior) 3579323 LV $1,133/ha for 2269 Ha. This is better than subject.

RU1/RHA 3619483 20,000 2,750 0.138 1.100 87.5% Former closed road previously valued with building entitlement. This PID has been verified to account as small rural parcel with no building entitlement.

RU1/RRG 3184650 415,000 250,000 0.602 1.100 45.2% Property has been reduced due to sale which revealed previous value too high considered the remote isolated location of the site. This site has been verified to reflect




sale. No other properties in immediate area are affected.

RU4/RHL 1874229 55,000 88,000 1.600 1.103 45.1% The site forms part of Kootingal Sewerage Treatment Works and has been valued in line with adjoining PID 1874230. This was verified during the 2016 Program Year.

RU4/RHL 3184778 99,300 200,000 2.014 1.103 82.6% This site has been verified as part of 2016 Program Year. Previously valued with no building entitlement however identified during verification to have dwelling erected on site. LV increased to reflect home site use.

RU5/AZY 1875902 105,000 184,000 1.752 1.099 59.5% This Component comprises the Villages of Attunga, Duri, Somerton and Woolbrook. Although the Component showed a Factor of 1.1 each Village actually was found to have sales resulting in significant differences as measured by Factors to 2015 LTV. Somerton has seen substantial increases over 2015 with 3 analysed improved sales and one vacant land sale showing an increased of a factor of 1.75.


RU5/AZY 1875928 17,600 30,800 1.750 1.099 59.2% This Component comprises the Villages of Attunga, Duri, Somerton and Woolbrook. Although the Component showed a Factor of 1.1 each Village actually was found to have sales resulting in significant




differences as measured by Factors to 2015 LTV. Somerton has seen substantial increases over 2015 with 3 analysed improved sales and one vacant land sale showing an increased of a factor of 1.75.




RU5/AZY 1875932 28,100 49,200 1.751 1.099 59.3% This Component comprises the Villages of Attunga, Duri, Somerton and Woolbrook. Although the Component showed a Factor of 1.1 each Village actually was found to




have sales resulting in significant differences as measured by Factors to 2015 LTV. Somerton has seen substantial increases over 2015 with 3 analysed improved sales and one vacant land sale showing an increased of a factor of 1.75.




RU5/AZY 1875937 18,900 33,100 1.751 1.099 59.4% This Component comprises the Villages of Attunga, Duri, Somerton and Woolbrook. Although the Component showed a Factor of 1.1




each Village actually was found to have sales resulting in significant differences as measured by Factors to 2015 LTV. Somerton has seen substantial increases over 2015 with 3 analysed improved sales and one vacant land sale showing an increased of a factor of 1.75.




RU5/AZY 1875942 31,600 55,300 1.750 1.099 59.2% This Component comprises the Villages of Attunga, Duri, Somerton and Woolbrook. Although the




Component showed a Factor of 1.1 each Village actually was found to have sales resulting in significant differences as measured by Factors to 2015 LTV. Somerton has seen substantial increases over 2015 with 3 analysed improved sales and one vacant land sale showing an increased of a factor of 1.75.










RU5/AZY 1875949 28,100 49,200 1.751 1.099 59.3% This Component comprises the Villages of Attunga, Duri, Somerton and Woolbrook. Although the Component showed a Factor of 1.1 each Village actually was found to have sales resulting in significant differences as measured by Factors to 2015 LTV. Somerton has seen substantial increases over 2015 with 3 analysed improved sales and one vacant land sale showing an




increased of a factor of 1.75.




RU5/AZY 1875956 9,590 16,800 1.752 1.099 59.4% This Component comprises the Villages of Attunga, Duri, Somerton and Woolbrook. Although the Component showed a Factor of 1.1 each Village actually was found to have sales resulting in significant differences as measured by Factors to 2015 LTV. Somerton has seen substantial increases over 2015 with 3 analysed improved sales and




one vacant land sale showing an increased of a factor of 1.75.




RU5/AZY 1875960 21,000 36,800 1.752 1.099 59.2% This Component comprises the Villages of Attunga, Duri, Somerton and Woolbrook. Although the Component showed a Factor of 1.1 each Village actually was found to have sales resulting in significant differences as measured by Factors to 2015 LTV. Somerton has seen substantial increases over 2015




with 3 analysed improved sales and one vacant land sale showing an increased of a factor of 1.75.




RU5/AZY 1875965 21,000 36,800 1.752 1.099 59.5% This Component comprises the Villages of Attunga, Duri, Somerton and Woolbrook. Although the Component showed a Factor of 1.1 each Village actually was found to have sales resulting in significant differences as measured by Factors to 2015 LTV. Somerton has seen




substantial increases over 2015 with 3 analysed improved sales and one vacant land sale showing an increased of a factor of 1.75.




RU5/AZY 1875969 28,100 49,200 1.751 1.099 59.3% This Component comprises the Villages of Attunga, Duri, Somerton and Woolbrook. Although the Component showed a Factor of 1.1 each Village actually was found to have sales resulting in significant differences as measured by Factors




to 2015 LTV. Somerton has seen substantial increases over 2015 with 3 analysed improved sales and one vacant land sale showing an increased of a factor of 1.75.




RU5/AZY 1875976 16,500 28,900 1.752 1.099 59.4% This Component comprises the Villages of Attunga, Duri, Somerton and Woolbrook. Although the Component showed a Factor of 1.1 each Village actually was found to have sales resulting in significant




differences as measured by Factors to 2015 LTV. Somerton has seen substantial increases over 2015 with 3 analysed improved sales and one vacant land sale showing an increased of a factor of 1.75.




RU5/AZY 2856351 23,700 41,500 1.751 1.099 59.3% This Component comprises the Villages of Attunga, Duri, Somerton and Woolbrook. Although the Component showed a Factor of 1.1 each Village actually was found to




have sales resulting in significant differences as measured by Factors to 2015 LTV. Somerton has seen substantial increases over 2015 with 3 analysed improved sales and one vacant land sale showing an increased of a factor of 1.75.




RU5/AZY 3207042 36,300 63,500 1.749 1.099 59.2% This Component comprises the Villages of Attunga, Duri, Somerton and Woolbrook. Although the Component showed a Factor of 1.1




each Village actually was found to have sales resulting in significant differences as measured by Factors to 2015 LTV. Somerton has seen substantial increases over 2015 with 3 analysed improved sales and one vacant land sale showing an increased of a factor of 1.75.




RU5/AZY 3493400 49,500 86,600 1.749 1.099 59.2% This Component comprises the Villages of Attunga, Duri, Somerton and Woolbrook. Although the




Component showed a Factor of 1.1 each Village actually was found to have sales resulting in significant differences as measured by Factors to 2015 LTV. Somerton has seen substantial increases over 2015 with 3 analysed improved sales and one vacant land sale showing an increased of a factor of 1.75.










RU5/AZY 3960443 72,500 130,000 1.793 1.099 63.2% This Component comprises the Villages of Attunga, Duri, Somerton and Woolbrook. Although the Component showed a Factor of 1.1 each Village actually was found to have sales resulting in significant differences as measured by Factors to 2015 LTV. Somerton has seen substantial increases over 2015 with 3 analysed improved sales and one vacant land sale showing an




increased of a factor of 1.75.





6.2. SIGNIFICANT VALUE CHANGES FROM PRIOR TO CURRENT LOCAL GOVERNMENT COUNCIL RATING VALUATION

Zone/Component PID 2013 LV 2016 LV Factor Explanation

RE1/SPP 1874554 103,000 50,000 0.49 Acceptable Land use changed in 2015. 2015 Verification. AE 13/2/15 This land is zoned RE1 Public Recreation and has been relocated to Component SPP. It is used for a park and located opposite commercial land. For Public Recreation lands the LVs for parks in Kootingal have been aligned to the LVs adopted throughout Tamworth. Refer to Reference BM PI 2765957 for sales and guide to value levels. Adopt $55,000 Less 5% for heritage restrictions = As $50,000

RE1/SPP 3305563 1,050 3,300 3.14 Acceptable consistent with component. 2015 Verification. AE 12/2/15 Used for access into Pub Res PI 3464683 at rear. Has 8.5m frontage to




road. See Reference BM PI 2765957 for sales and methodology for parks located throughout residential areas. Adopt 463m2 @ $7 = $3,241. As $3,000

SP3/SPA 3468680 25,000 54,500 2.18 Acceptable consistent with component. 2015 verification AE 27/1/15 This is an elongated vacant strip of unused land with T L Easements covering virtually the whole site. It has no building potential but could be used for parking. LV of $100/m2 adopted on the adjoining Harvey Norman site of 9395m2 = $940,000. Adopt 7140 @ $7.00/m2 = $50,000 which is nominal value.

RU5/AZY 2847132 18,000 52,500 2.92 Commercial use within village zone.

R1/AEN 2759591 65,000 190,000 2.92 Previously valued on basis of public recreation but in fact is zoned




R1 General Residential and has been valued as englobo site.

RU4/RHL 3184778 99,300 200,000 2.01 This entry appears out of line with surrounding values. Previously valued with no building entitlement which has since been identified with residence therefore has been valued with building entitlement.

IN3/CCG 3780550 5,000,000 12,000,000 2.40 Scarcity of market evidence within industrial zones in previous years. Increase in market due to pressure to create new industrial land releases. Sale on subject indicates significant increase.

B3/BBC 2757029 50,000 112,000 2.24 Fringe commercial area has high rise in market due to nearby development of an extensive new supermarket and supported by nearby recent sales.




See sale of PIDs 2765575 and 2765576.

B3/BBC 3879104 2,356,000 4,850,000 2.06 Developed as large supermarket centre since 2013. Complex recently reported as sold for $38 Million.

B3/BBC 2765577 96,400 216,000 2.24 Fringe commercial area has high rise in market due to nearby development of an extensive new supermarket and supported by nearby recent sales. See sale of PIDs 2765575 and 2765576.

RE1/SPP 3117278 30,000 10,500 0.35 This property has reduction on verification during 2016 Program Year.

RE1/SPP 1876184 7,500 28,200 3.76 Verified during 2016 Program Year. The site is developed as radio transmitter.

RE1/SPP 1874797 32,400 70,000 2.16 Acceptable. This property was verified in 2015 to bring into line with other pubilc recreation land throughout Tamworth. Consistent with lands in




the surrounding component for 2016 LV

RU1/RHA 3619483 20,000 2,750 0.14 Former closed road previously valued incorrectly with building entitlement. Verified for 2016 BD as small rural parcel with no building entitlement.

SP3/SPA 3468679 45,000 109,000 2.42 Previously valued as recreational land though since identified with development potential given location nearby Tamworth Regional Entertainment Centre.

RU1/RHC 3685957 15,000 37,100 2.47 Verified during 2016 Program Year. Sale of subject indicating site with no building entitlement close to Tamworth.

RE1/SPP 2756660 146,000 69,000 0.47 This site has been reduced on verification as part of 2016 Program Year.

B3/BBC 2765576 83,700 188,000 2.25 Fringe commercial area has high




rise in market due to nearby development of an extensive new supermarket and supported by nearby recent sales. See sale of PIDs 2765575 and 2765576.

B3/BBC 2756727 775,000 338,000 0.44 Acceptable. The unrestricted LV has been changed substantially over the years and has now been revised to correlate with adjoining and nearby values. This is a one off adjustment with no other properties affected.

R1/AAL 3464641 11,000 25,000 2.27 This is a drainage reserve which has been verified for 2016 Base Date to reflect the value for this specialised public use.

R1/AAN 2755528 8,650 50,000 5.78 Previously valued as site with no building entitlement given physical constraints and excessive costs involved to provide suitable




building site. Sold with intention of building a residence confirmed by agent. Land value increased to include building entitlement.




7. QUALITY ASSURANCE

7.1. OVERVIEW

LPI has been provided with a detailed valuation analysis report, which details the quality assurance process of the Contractor and outlines the verification process and certifies that land values meet all statistical measures and component data analysis. In addition, a quality statement and list 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 re-ascertainment 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 Procedure Manual Version 7. 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.




7.2. QUALITY CONTROL CHECKLIST

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




8. AUTHOR

The report has been prepared by:

Bruce Sharrock Senior Valuer GOVVAL PTY LIMITED

Matthew Spencer Valuer GOVVAL PTY LIMITED

Lucy Bates Contract Services Manager GOVVAL PTY LIMITED

17th November 2016

final report - valuergeneral.nsw.gov.au · the new tamworth woolworths/dan murphy’s eastpoint 1...

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