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Uralla Final Report 2015

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Uralla Final Report 2015 FINAL REPORT 2015 Rural landscape – Gostwyck, South-East of Uralla Uralla LGA Contract Area New England Contract No 742342 Prepared for LPI Under Rating & Taxing Procedure Manual 6.6.2 Opteon Property Group Opteon (Northern Inland NSW) 536 Peel Street Tamworth NSW 2340 P 02 6766 3442 E [email protected] F 02 6766 5801 W www.opg.net VALUE MADE VISIBLE Liability limited by a scheme approved under Professional Standards Legislation Uralla LGA 2015 Final Report Executive Summary LGA Overview Uralla Local Government Area Uralla Local Government Area (LGA) is located in northern New South Wales, approximately 450 kilometres to the north of Sydney in the New England Region of New South Wales. Uralla LGA comprises a land area of approximately 3,215 square kilometres that predominantly includes undulating land. Uralla LGA is adjoined by five other LGAs – Armidale Dumaresq Council to the east, Guyra Shire Council to the north-east, Gwydir Shire Council to the north-west, Tamworth Regional Council to the west and Walcha Shire Council to the south. Number of properties valued this year and the total land value in dollars Uralla LGA comprises Residential, Rural, Commercial, Industrial, Infrastructure, Environmental and Public Recreation zones. 3,031 properties were valued at the Base Date of 1 July 2015, and valuations are reflective of the property market at that time. Previous Notices of Valuation issued to owners for the Base Date of 1 July 2011. The Uralla property market has experienced varied movement over the period depending on the property class. Valuation changes in the LGA and percentage changes between the Council Valuation years of 1 July 2011 and 1 July 2015 and the Land Tax Valuation year of 1 July 2014 are as follows: Properties Valued and Total Land Value Prior Local Number Prior Annual Zone 2015 Total % Government % Zone of Valuation Code Land Value change Valuation change Entries (2014) (2011) Residential R1, R2, R5, RU5 1,709 $ 183,765,140 $ 176,950,130 4% $ 166,297,910 11% Rural RU1, RU2 1,138 $ 531,021,140 $ 508,752,620 4% $ 519,490,050 2% Commercial B2, B4, B6 121 $ 11,681,810 $ 11,002,220 6% $ 9,537,200 22% Industrial IN1, IN2 23 $ 2,959,600 $ 2,829,900 5% $ 2,485,000 19% Infrastructure SP2 5 $ 356,200 $ 421,300 -15% $ 358,100 -1% Environmental E3, E4 21 $ 4,210,000 $ 4,210,000 0% $ 4,276,000 -2% Public Recreation RE1, RE2 14 $ 2,763,500 $ 2,611,500 6% $ 2,270,000 22% Total 3,031 $ 736,757,390 $ 706,777,670 4% $ 704,714,260 5% Opteon Property Group | VALUE MADE VISIBLE Page 2 Liability limited by a scheme approved under Professional Standards Legislation Uralla LGA 2015 Final Report State & Local Government Legislation for LGA Uralla LGA is governed by the Uralla Shire Council LEP 2012 (LEP) gazetted on 23 March 2012. There have been no amendments to the LEP since the previous valuation Base Date 2014. However since the previous General Valuation 2011 the current LEP has been gazetted. The current LEP is generally aligned with the prior planning instrument with most changes relating to changes into the standardised planning format/zone structure. The current plan is based on the standardised Local Environmental Plan prescribed by the New South Wales Legislation. Market Overview Opteon Property Group (OPG) as Contractors have undertaken significant analysis of the Uralla LGA property market to provide an accurate and reliable basis of valuation. 129 sales have been analysed to enable the establishment and verification of land values as at 1 July 2015. These analysed sales also support the grading across components. Analysed sales reports are provided to Land and Property Information on a consistent basis throughout the year. The added value of improvements are also analysed to enable the accurate deduction of land values. OPG as Contractors undertakes this process using the Paired Sales Approach and the Written Down Replacement Cost Approach, with Replacement Cost Approach used when appropriate. In analysing sales before or after 1 July it is necessary to adjust the contract price in terms of market movement. In the Uralla District this year sales indicate a slightly firming market with small increases in most areas of Uralla Town, including residential, rural residential, industrial and commercial. Generally the rural property sector has remained stable or firmed slightly in the last year with sales volumes also remaining steady. Depending on property sector, market movement in the Uralla LGA has varied since the 2011 General Valuation. Generally the values within the residential, commercial and industrial sectors have increased moderately to strongly in the four year period, with increases generally between 10% - 20% in the period. More moderate increases of approximately 11% occurred for residential land, with stronger increases of 19% - 22% for industrial and commercial land. It is noted that commercial and industrial land value increases were supported by limited supply. These increases can also be attributed to the towns close proximity to Armidale and its comparative housing affordability. In contrast, the rural market has remained fairly steady in the same period, with the limited sales evidence available generally demonstrating some modest increases/decreases in some areas only including modest increases between Kingstown and Bundarra for better quality grazing land, and modest decreases at Kentucky for small holdings/hobby farms. Overall in the last twelve months Uralla Town residential values have generally strengthened by 5% in line with the neighbouring Armidale City. The Uralla Shire village markets have generally remained stable with no real movement in values over the past twelve months. There has been limited commercial and no industrial sales activity in Uralla since the previous Base Date, with available evidence showing a 5% increase in values, similar to that of the surrounding residential land values of Uralla Town. In the rural sector values increases approximately 5% for getter quality mixed farms and grazing lands; small holdings/hobby farms at Kentucky reduced approximately 10%; with poorer grazing, rural retreats and lifestyle holdings generally experiencing no change in value. Opteon Property Group | VALUE MADE VISIBLE Page 3 Liability limited by a scheme approved under Professional Standards Legislation Uralla LGA 2015 Final Report Significant Issues and Developments The only Development Application of note in the last year was for a 60 lot subdivision located on Barleyfields Road just east of the New England Highway. Granted in March 2015, no DP has been registered and no construction work has yet commenced. Little development has occurred since the 2011 General Valuation other than a 6 lot subdivision on Plane Avenue, approved in 2014 with complying developments such as new residences and duplexes. Uralla Council recently announced plans to rezone an 81 hectare parcel of land along Rowan Avenue and New England Highway, on the southern fringe of Uralla. Currently zoned RU1 Primary Production, RU2 Rural Landscape and IN2 Light Industrial, it is intended that the 5 hectares of industrial zoned land will be purchased and subdivided by Council with plans to create an industrial estate, and the remaining 76 hectares will be rezoned to RU4 Primary Production Small Holdings. Since the previous General Valuation 2011 there has been consolidation/strengthening in the commercial area with lower vacancies and a good tenancy mix which has strengthened the popularity of Uralla as a destination for boutique shopping and café dining. Significant Value Changes Minor variations and value changes (generally ±10%) in the past 12 months and since the previous General Valuation Date of 2011 have previously been noted in this Report (see Market Overview). There have been some significant value changes due to verification since both the 2011 and 2014 Base Dates which are summarised below: Summary of Valuation Changes to Residential Land Changes since previous General Valuation (2011) - Some properties in the Village of Bundarra had values reduced following review of the Uralla LEP flood map with new sales evidence supporting the adopted value levels. - Rural residential properties along Rocky Abbey Road were increased following nearby sales evidence which showed that R2 zoned properties on this fringe of Uralla required increases in value. - Some increases in values of heritage listed properties following the issue of new instruction by LPI for the valuation of heritage listed properties, with development potential to be considered of remainder of sites not directly subject to the listing. Changes since previous Valuation Year (2014) As well as the changes outlined above since previous General Valuation which generally occurred in the last twelve months, there have been some increases in value of larger residential sites of good quality land in Uralla Town with potential for subdivision, due to increases in demand. Opteon Property Group | VALUE MADE VISIBLE Page 4 Liability limited by a scheme approved under Professional Standards Legislation Uralla LGA 2015 Final Report Summary of Valuation Changes to Rural Land Changes since previous General Valuation (2011) - Some changes in value both increases and decreases, following scheduled verification using newly available imagery, which identified both inferior/superior rural land including extent of timbered land. These amended land classifications have been used to calculate land values resulting in some significant changes. - Heritage listed property in Uralla Environs had value reduced as heritage listing considered to restrict value to current use only, being a utility site with no building entitlement. - A property in Bundarra Environs had value reduced on review as the property is all grazing licence with no freehold land or dwelling. - Some grazing properties in the remoter parts of Abington/Yarrowyck rural locality had reductions in value following nearby sales evidence, which showed a greater discount was required for very steep and rough topography, remote location and poor access.
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