Kiama Local Government Area Final Report 2015 09 November 2015

Rating and Taxing Valuation Procedures Manual v6.6.2 Kiama Local Government Area Final Report 2015 09 November 2015 Rating and Taxing Valuation Procedures Manual v6.6.2 Page 1 Rating and Taxing Valuation Procedures Manual v6.6.2 Executive Summary A summary of key data discussed herein is as follows. LGA Overview Kiama Local Government Area The Municipality of Kiama is located in the Illawarra Region of New South Wales, about 120 kilometres south of Sydney. The Municipality of Kiama is bounded by Shellharbour City in the north, the Tasman Sea in the east, Shoalhaven City in the south and Wingecarribee Shire in the west. The Kiama Municipality is a predominantly rural area with urban townships along the coast. The main towns and villages are Kiama, Kiama Heights, Gerringong, Gerroa, Kiama Downs and Jamberoo. The Municipality encompasses a total land area of 259 square kilometres, including national parks, beaches, rivers and rainforests. Rural land is used mainly for dairy farming and cattle grazing, with some vineyard activity. Also. Basalt mining is carried out at Bombo. The original inhabitants of the Kiama area were the Wodi Wodi Aboriginal people. European settlement of the area dates from 1814, with land used mainly for timber-getting, farming and quarrying. The township of Kiama was established in the 1830s, developing as a shipping and servicing centre for the local industries. Growth took place in the 1880s and 1890s, spurred by the construction of the railway line and improved access. Expansion continued in the interwar period, with the coastal area becoming a popular holiday retreat. Significant development occurred during the post-war years, with the population increasing from about 2,300 in 1947 to 11,400 in 1981. Growth continued during the 1980s and 1990s, with the population rising to 18,800 in 2001. The population then declined marginally to 18,600 in 2006. Major features of the Municipality include Seven Mile Beach National Park, Budderoo National Park, Barren Grounds Nature Reserve, Kiama Blowhole, beaches and fertile rural landscape. The Municipality is served by the Princes Highway and the South Coast railway line. Rating and Taxing Valuation Procedures Manual v6.6.2 Page 2 Rating and Taxing Valuation Procedures Manual v6.6.2 Number of properties valued this year and the total land value in dollars Changes since previous General Valuation (2012) DISTRICT Kiama LGA BASE YEAR 2015 PROPERTIES TOTAL LAND TOTAL LAND ZONE % CHANGE VALUED VALUE 2015 VALUE 2012 B1 Neighbourhood Centre 31 $17,575,000 $11,651,000 50.85% B2 Local Centre 215 $208,861,720 174,703,980 19.55% B7 Business Park 49 $21,214,000 15,953,000 32.98% E1 National Parks and Nature Reserves 5 $4,867,500 4,867,500 0.00% E2 Environmental Conservation 112 $53,943,040 54,392,220 -0.83% E3 Environmental Management 199 $190,508,050 177,994,200 7.03% IN2 Light Industrial 8 $5,626,000 4,786,000 17.55% IN4 Working Waterfront 6 $1,760,600 1,523,200 15.59% R2 Low Density Residential 6,967 $3,061,448,190 2,371,826,480 29.08% R3 Medium Density Residential 481 $288,392,190 193,782,660 48.82% R5 Large Lot Residential 180 $82,408,000 58,945,000 39.80% RE1 Public Recreation 178 $51,387,430 47,146,570 9.00% RE2 Private Recreation 3 $4,160,600 3,042,180 36.76% RU1 Primary Production 188 $148,270,930 140,267,990 5.71% RU2 Rural Landscape 530 $490,044,340 495,660,890 -1.13% SP2 Infrastructure 48 $17,318,230 14,991,310 15.52% TOTALS 9200 $4,647,785,820 $3,771,534,180 20.39% Changes since previous Valuation (2014) DISTRICT Kiama LGA BASE YEAR 2015 PROPERTIES TOTAL LAND TOTAL LAND ZONE VALUED VALUE 2015 VALUE 2014 % CHANGE B1 Neighbourhood Centre 31 $17,575,000 $13,974,000 25.77% B2 Local Centre 215 $208,861,720 $183,078,140 14.08% B7 Business Park 49 $21,214,000 $18,897,000 12.26% E1 National Parks and Nature Reserves 5 $4,867,500 $4,867,500 0.00% E2 Environmental Conservation 112 $53,943,040 $53,937,790 0.01% E3 Environmental Management 199 $190,508,050 $181,482,050 4.97% IN2 Light Industrial 8 $5,626,000 $5,111,000 10.08% IN4 Working Waterfront 6 $1,760,600 $1,601,300 9.95% R2 Low Density Residential 6,967 $3,061,448,190 $2,697,469,880 13.49% R3 Medium Density Residential 481 $288,392,190 $237,862,310 21.24% R5 Large Lot Residential 180 $82,408,000 $71,657,000 15.00% RE1 Public Recreation 178 $51,387,430 $47,705,410 7.72% RE2 Private Recreation 3 $4,160,600 $4,160,100 0.01% RU1 Primary Production 188 $148,270,930 $146,422,930 1.26% RU2 Rural Landscape 530 $490,044,340 $492,376,640 -0.47% SP2 Infrastructure 48 $17,318,230 $16,489,410 5.03% TOTALS 9200 $4,647,785,820 $4,177,092,460 8.78% Rating and Taxing Valuation Procedures Manual v6.6.2 Page 3 Rating and Taxing Valuation Procedures Manual v6.6.2 State & Local Government Legislation of LGA Planning Controls & Instruments – Kiama Municipal Council utilises several planning & control instruments. They are summarized below: • Kiama Local Environmental Plan 2011 • Kiama Development Control Plan 2012 • Building Sustainability Index (BASIX) • NSW State Government Legislation and Planning Policies which affect Planning in Kiama LGA include: • Environmental Planning and Assessment Act • Kiama Urban Strategy (May 2010) • NSW Government – Illawarra Regional Strategy • Significant areas are affected by State Environmental Planning Policy No. 71 and are within the Coastal Zone requiring development consent from The Minister for Planning. • The NSW Government has recently released Your Future Illawarra – being a Draft Regional Growth Strategy proposed by NSW Government and this proposal is up for public comment. The Kiama Urban Strategy (KUS 20 September 2011), provides planning direction for development in the Municipality for the next ten years (to the year 2021). The direction taken in the KUS was set with considerable input from the community. Accordingly, the core features that have informed the KUS are: • The need to protect the Municipality's rural lands from any significant or inappropriate future expansion. • The need to protect against cumulative impacts of ‘expansion creep’ into rural areas. • The need to protect and maintain the separate towns and villages in the LGA. • The need to maximize infill development located in appropriate areas. Rating and Taxing Valuation Procedures Manual v6.6.2 Page 4 Rating and Taxing Valuation Procedures Manual v6.6.2 Market Overview and Sales of Particular Interest Walsh and Monaghan have undertaken significant analysis of the property market within Kiama Local Government Area (LGA) to provide an accurate and reliable basis of valuation. Below are the number of sales that have been analysed (YTD) to enable the assessment and verification of land values as at 1 July 2015 . These analysed sales also support the grading across components and valuation quartiles therein; Land Use Total Sales Residential 150 Commercial 14 Rural 28 TOTAL 193 Analysed sales reports (PDF format) are provided to Land and Property Information on a consistent basis throughout the year by way of weekly uploads. Market data files (all sales adjusted to current base date) are loaded with provisional and annual value recommendations. The added value of improvements are also analysed to enable the accurate deduction of land values. Walsh and Monaghan undertake this process using; 1. paired sales approach; 2. depreciated cost new approach; and to a lesser extent 3. replacement cost approach. In analysing sales before or after 1 July it is necessary to adjust the analysed land value in terms of market movement. In the Kiama LGA this year there was a significant continuing market movement evident during the period. This was indicated by sales of comparable lots over time in various estates (Chapel Hill Jamberoo, Over 55’s Old Saddleback Kiama, Muna Munnora Estate Kiama) throughout the Kiama LGA. Sales and resales of properties (including vacant land) indicated considerable increases in values during the period with some significant but uneven market movement from late 2014 through to 1 July 2015 for properties zoned residential. Typical movement in vacant land sale price in comparable properties is represented graphically as follows; Rating and Taxing Valuation Procedures Manual v6.6.2 Page 5 Rating and Taxing Valuation Procedures Manual v6.6.2 Graph of vacant land sales in Bombo Estate over 12 month period 900,000 800,000 700,000 600,000 500,000 Price 400,000 Linear (Price) 300,000 200,000 100,000 0 1 2 3 4 5 6 7 8 91011 Vacant land sales “Elambra Estate” Gerringong Elambra Estate $350,000.00 35 $300,000.00 30 $250,000.00 25 $200,000.00 20 $150,000.00 15 Sale Sale Price $100,000.00 10 Numberof Sales $50,000.00 5 $- 0 Number of sales Mean Median Rating and Taxing Valuation Procedures Manual v6.6.2 Page 6 Rating and Taxing Valuation Procedures Manual v6.6.2 Rural property values were more static throughout the current period. Although we have seen increased interest from prospective purchasers in this market segment, there has been little or no evidence indicating widespread increases to values under these zonings. In adjoining LGA’s (Wingecarribee and Wollondilly), we have seen significant increases in rural lifestyle property values, however these markets came under much greater downward pressure during and post the GFC in 2008 and these increases are more a recovery from these former reductions.

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