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Cooma Monaro Final Report 2015

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Cooma Monaro Final Report 2015 Cooma-Monaro Shire Final Report 2015 Date: 22 October 2015 Cooma-Monaro LGA Final Report 2015 1 EXECUTIVE SUMMARY LGA OVERVIEW Cooma-Monaro Local Government Area The Cooma-Monaro Shire Council area is located in the south east region of NSW. The Shire comprises a land area of approximately 5229 square kilometres comprising undulating to hilly rural grazing land, timbered lifestyle areas and retreat bushland. The Local Government Area (LGA) is adjoined by four other LGAs – Palerang to the north, Tumut and Snowy River to the west, Bombala to the south and Bega Valley to the east. The main economic activities in the Shire include sheep and cattle grazing plus the “provision” of hobby farms / rural home sites in the Cooma area for the Cooma market, in the Michelago area (ie the northern part of the Shire) for the Canberra market and at various other locations including along the Murrumbidgee River and at the southeast periphery near Nimmitabel. These rural/ residential blocks and bush retreats cater for a number of sub markets and demand tends to ebb and flow. Number of properties valued this year and the total land value in dollars The Cooma-Monaro LGA comprises Residential, Rural, Commercial, Industrial, Infrastructure/Special Purposes, Environmental and Public Recreation zones. 5,388 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 2014. The Snowy River LGA property market generally has remained static across all sectors with various minor fluctuations. Valuation changes in the Local Government Area and percentage changes between the Council Valuation years of 1 July 2013 and 1 July 2015 and the Land Tax Valuation year of 1 July 2014 are as follows: Cooma-Monaro LGA Final Report 2015 2 Properties Valued and Total Land Value Zone Zone Number 2015 Total Prior Annual % Prior Local % Code of Entries Land Value Valuation Change Government Change $ (2014) $ Valuation (2013) $ Residential (R1, 3225 263,239,230 262,585,540 +0.25 268,236,500 -2.11 R2, RU5) Rural (RU1, 2357 450,468,440 450,582,840 -0.02 448,771,140 +0.40 R5) Commercial (B1, 342 60,337,710 60,128,110 +0.35 60,155,910 -0.05 B2) Industrial (IN1 ) 90 10,709,700 10,709,700 0 10,707,700 +0.02 Infrastructure (SP1, 39 3,233,580 3,233,580 0 3,232,580 +0.03 SP2, SP3) Environmental (E1, 148 35,814,320 35,818,320 -0.01 35,631,720 +0.52 E2, E3) Public (RE1, 66 6,145,100 6,215,100 -1.13 6,215,100 0 Recreation RE2) Total 6267 829,948,040 829,273,190 +0.08 832,950,650 -0.44 STATE & LOCAL GOVERNMENT LEGISLATION FOR LGA Cooma-Monaro Local Environmental Plan 2013 gazetted 25 October 2013. The Cooma-Monaro Local Government Area is governed by the Cooma-Monaro Local Environmental Plan 2013 (LEP). The plan is based on the standardised Local Environmental Plan prescribed by the New South Wales Legislation. MARKET OVERVIEW AND SALES OF PARTICULAR INTEREST QVA Contractors have undertaken significant analysis of the Cooma-Monaro LGA property market to provide an accurate and reliable basis of valuation. A total of 132 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. QVA 3 Contractors undertakes this process using the Paired Sales Approach and the Replacement Cost Approach. In analysing sales before or after 1 July it is necessary to adjust the contract price in terms of market movement. In the Cooma-Monaro LGA this year sales and resales of properties indicated little variance in values throughout the year with only slight movement from August 2014 to 1 July 2015 for properties zoned residential. Rural properties apart from minor fluctuations remained constant. SIGNIFICANT ISSUES AND DEVELOPMENTS There have not been any significant developments or applications for developments outside of those that are permissible under the current zoning and therefore no special consideration is required. There have been approvals for subdivisions:- PID 482682 1 Ryrie St Michelago Staged subdivision 21 lots Approved 30/09/2014 PID 3271522 Burra Rd Burra Staged subdivision 40 lots Approved 01/01/2015 General issues of significance:- • The Boco Rock Wind Farm owned by The Wind Prospect Group, is now completed and in operation. • Supply of housing stock and vacant residential lots on the market continues to generally outstrip demand. Limited interest from investors. Very few employment opportunities currently exist in Cooma. • Farming occupies a large part of the district and is an important part of the regional economy. Climate change and its influence on seasonal variation will continue to impact on the profitability of farming in the district. • Hobby farms and rural home sites are continuing to expand into current farm land in the northern part of the District, and the influence of Canberra buyers on demand and price level will continue into the future. This is to some extent reversing population decline in selective areas. 4 SIGNIFICANT VALUE CHANGES Summary of Valuation Changes to Residential Land Changes since previous General Valuation (2013) There has been a small decrease to residential values over the review period centred primarily in Cooma town values while the Village values have remained static. Changes since previous Valuation Year (2014 ) There has been a small increase in total values centred on a slight firming in the Cooma town market with Village values remaining static. The number of sales has increased slightly in the period. Summary of Valuation Changes to Rural Land Changes since previous General Valuation (2013) Rural values have essentially remained steady over the period with firm demand for good quality grazing land across the LGA. Values vary substantially based on the wide variation of land type from arable granite and basalt grazing to rough, rocky timbered grazing and bush retreats. There has a small increase on total value largely as a result of verification adjustments to correct relativities in values. Changes since previous Valuation Year (2014) Values have overall remained steady at 2014 levels of value. Summary of Valuation Changes to Commercial Land Changes since previous General Valuation (2013 ) There has been very limited sales of commercial land in the LGA with the bulk of properties located in Cooma town centre. Values have remained steady over the period. Changes since previous Valuation Year (2014) As above there is limited sales evidence to indicate any significant market movement. Business activity in Cooma appears to be steady with traders and retail premises servicing the local and tourism trade. Summary of Valuation Changes to Industrial Land Changes since previous General Valuation (2013) There has been limited sales evidence with values remaining steady over the period. 5 Changes since previous Valuation Year (2014) There has been limited sales evidence with values remaining steady over the period. 6 CONTENTS Executive Summary .............................................................................................................................................. 2 Contents ............................................................................................................................................................... 7 Disclaimer – Purpose of this Report .................................................................................................................... 8 LGA Overview ....................................................................................................................................................... 9 State & Local Government Legislation for LGA ................................................................................................ 12 Market Overview & Sales of Particular Interest ................................................................................................ 12 Significant Issues and Developments ............................................................................................................... 18 Significant Value Changes ................................................................................................................................. 19 Overview of the Quality Assurance Process ..................................................................................................... 20 Author ................................................................................................................................................................. 20 Cooma-Monaro LGA Final Report 2015 7 DISCLAIMER – PURPOSE OF THIS REPORT The purpose of this report is to describe the process and considerations for the 1 July 2015 Valuation of Cooma-Monaro LGA. The report has been produced on behalf of the Valuer General. The land values have been specifically made for rating and taxing purposes. Land values produced as part of this process should not be used for any other 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
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