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

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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.

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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%

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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.

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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;

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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

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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.

Rental analysis in both commercial and industrial market sectors confirms that increases are generally confined to CPI only.

On the basis of the most recent, be it limited commercial sales evidence, it appears commercial yields are coming under increased downward pressure having increased steadily and then remained quite static since the GFC in 2008.

Commercial transactions indicating yields have been quite scarce, however development site activity and sales, including subsequent pre-sales has greatly increased over the most recent and previous period.

This segment has been static for many years, however the greatly increased activity in the residential sector (following on from metropolitan markets) has resulted in many of the development sites within the Kiama LGA that have laid dormant for some time now having either been sold, undertaking or having gained development consents and some have continued through to pre-sales and construction.

Feasibility studies and residual value analysis (hypothetical development) were carried out on residential, commercial and industrial development sites and significant increases in “end lot” selling prices have resulted in the improved feasibility and subsequent activity on many of these sites.

Sales Activity

There has been a significant increase in the number of sales transacted over the current and recent periods in various property zones, with the latest period showing the most significant increase.

Number of Sales per Valuation Year 700 600 500 400 300 200

Numberof Sales 100 0 2012-2013 2013-2014 2014-2015

Business Environmental Residential Rural

Further graphical detail of the number of sales over consecutive periods appears later in this report.

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Some notable sales include:

• The sale ($22,700,000 21/12/2012) and subsequent re-sale ($38,000,000 12/12/2014) of the only supermarket site in the suburb of Kiama – Kiama Village (former Centro and Kiama Fair). The two sales occurred within approximately 18 month period. A refurbishment and securing of a longer term agreement with the anchor tenant, plus minor other changes to the tenancy profile occurred during the interim period with the property being subsequently acquired by a property fund. • The sale of Large highly capitalised rural residential property (12/579733 61/1122132) Princes Highway, Kiama Bends Kiama Heights) for $7,300,000. This headland reserve positioned site enjoyed expansive ocean and rural views and was improved with a very substantial architect designed flagship residence (partially incomplete internally) and was marketed internationally. The final sale price is indicative of not only the underlying land value but also the substantial improvements. • The sale of 242 Fern Street Gerringong (10/09/2012 $7,000,000) being a 40.445 Hectare vacant rural parcel set in an elevated headland reserve position was the previous highest rural sale in the LGA and shows the underlying demand for these scarce rural lifestyle sites, but also the limited pool of buyers as indicated by the sale above. • A further sale of a large headland reserve vacant rural lifestyle parcel was for 206/1164476 Princes Highway Gerringong ($4,700,000 30/04/2015). This was a 60.26 hectare parcel with expansive views and direct access to Werri lagoon and beach. Purchased with a battle-axe bitumen formed driveway to the boundary and DA consent for a new dwelling of substantial proportions. • 28 Bong Bong St Kiama sale of Rail Corporation land in a central position with some beach and ocean views (27/03/2015 $4,675,000). This site was sold to a well-known local developer after an extensive marketing campaign. The site has been negotiating final approvals for circa 70 plus residential apartments, some 190 carparks and retails shops via the regional planning panel. Final consent unknown at the time of writing. • A non-settled sale has occurred for stage 2 Cedar Grove estate, access via stage 1, Jamberoo Road, Kiama. Some 90 plus pre-sales of residential vacant end lots have exchanged and civil works are proceeding at the time of writing. Sales activity in this yet to be completed estate has been unprecedented. • A further non-settled sale of a large development site in central Kiama has also been reported at 33 Collins Street and including lands through to Meares Place at the rear. This is an example of a development site that has been marketed for many years (with some influence from financiers) with little interest and a negotiated sale appears to have exchanged ($3,245,000 March 2015) however not yet confirmed.

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Significant Issues and Developments

There have been a number of significant developments within the Kiama LGA over the current and recent periods, the majority of which I understand the applications for development were processed via Kiama Municipal Council planning staff or the Joint Regional Planning Panel. Some of the key applications and consents are summarised below together with relevant planning information.

1. The Kiama Local Environmental Plan 2011 was finalised in December 2011 and initiated shortly thereafter and this remains the primary planning instrument in the Kiama LGA in conjunction with the Kiama DCP 2012, which was released following the Local Environmental Plan and adopted on 31st July 2012. 2. The Kiama DCP 2012 is a working document that was adopted by Council on 31 July 2012. Revisions continue to this planning document with a review of the width of roads within residential subdivisions currently underway at the time of writing. 3. The Kiama Urban Strategy was adopted at a KMC meeting on the 20th September 2011. This document I understand is still relevant. 4. The NSW Government has recently released Your Future Illawarra – being a Draft Regional Growth Strategy proposed by NSW Government and up for public comment. There were various public meetings scheduled to review this draft plan, which I understand has not yet been finalised. 5. The Department of Planning and Environment NSW held a community forum regarding the draft Regional Growth Plan on 19th November 2014 at the Kiama Leagues Club. This meeting discussed plans that the NSW Government have for this area including: • Setting proposed housing targets within Kiama to 2031 • Proposed draft actions including “exploring the potential to shift planning controls In Kiama and Gerringong town centres to generate more feasible housing supply in the existing urban areas” and • Plans for greenfield sites such as South Gerringong • Housing targets proposed for Kiama in the draft regional growth plan to 2031. 6. Civil works have been completed on two large residential development sites in Jamberoo (Drualla Road) and Kiama (South Kiama Drive) yielding 31 and 25 lots respectively. The Chapel Hill estate in Jamberoo is almost fully sold with some buyers profiting from re-sales in recent weeks. The Muna Munnora Estate on South Kiama drive had some early sales prior to civil works at what were considered to be at the lower end of fair market value (circa $240,000). These lots appear to have been purchased by local investors in blocks with a view to re-selling at a profit and lots are now being marketed in this estate for circa $340,000. 7. A proposal by KMC to acquire and re-develop the Kiama Hospital site into a large aged care facility comprising nursing home and self-care accommodation options has reached the public exhibition stage with the development application. 8. A further recent subdivision of some 17 vacant residential lots at Bombo Beach accessed via Riverside Drive and bordered by the same and the Illawarra Railway Line has also been

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completed, with the majority of the lots having exchanged. Sale prices range from $450,000 for the lots adjacent to Riverside Drive to $800,000 for those lots in superior positions. Significant Value Changes

The various value changes within the Kiama LGA are presented in tabulated from above according to the zoning. The most significant changes have resulted from the realignment of values (handcrafting) in line with the most recently analysed sales evidence, however, there have been wholesale increases noted in various zones and locations.

A detailed description of value movements has been included in the body of this report.

Summary of Valuation Changes to Residential Land

Changes since previous General Valuation (2012)

The average value change, from the last General Valuation to the current valuation (2015), calculated across the aggregated residential zones is 20.39%.

The escalation in values is considered representative of the general market increase over this period of time, and more specifically the most recent increases (see below) as evidenced by analysed sales. Increases range from 5% up to 50%.

Changes since previous Valuation (2014)

The average value change calculated across the aggregated residential zones is 16.58%.

Growth has been evident in all residential markets since the last valuation in 2014.

It is difficult to pin point the most significant increase, however the sales activity and analysis of the development sites sales, particularly R3 Medium Density has shown the highest percentage increase.

Within the various Kiama LGA townships the residential market has been considerably buoyant with strong demand across all residential market segments. Agents have also reported strong interest from both out of town and international investors, particularly to the upper end properties.

The residential land value changes are summarised as follows: R3 Medium Density Residential zoned properties (21.24%). R5 Large Lot Residential zoned property showed a 15% increase, whilst the R2 Low Density Residential sector recorded an increase of 13.49%.

The increased value of residential englobo sites contributed to these increases.

Summary of Valuation Changes to Rural Land (including protection)

Changes since previous General Valuation (2012)

The average value change, from the last General Valuation to the current valuation (2015), calculated across the aggregated rural and environmental protection zones is a nominal 2.16%.

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The largest increases have been for E3 environmental management lands (7.03%) and rural primary production (5.71%). The predominantly “static” nature of these values is considered to be representative of the general market over this period of time, having regard to the most recent increases evident below.

Changes since previous Valuation (2014)

The average value change calculated across the aggregated rural and protection zones is also a nominal 1.15%.

The Kiama LGA is a highly regarded rural and rural lifestyle locality due to its temperate climate, rich soils, proximity to Sydney and local tourist attractions. The most common genuine rural land uses in the LGA are commercial dairy operations in addition to grazing activities; however these land uses are largely the minority with recreational or rural residential occupation being the dominant land use.

Larger genuine grazing holdings tend to be well held, particularly those well positioned dairy operations with when developed and maintained capital improvements. Very few dairy farms change hands, and when they do dairy operations are more likely to cease than continue with ownership changes.

The market for larger lifestyle holdings remains steadily traded, however, values tend to be somewhat uneven with higher purchase prices for those well located, with respect to views and surrounding development and with good access. More remote retreat holdings (generally heavily timbered) can be adversely affected by environmental constraints such as bushfire, and if access and views are compromised, this has a significant impact on the value.

The increase in the market demand and values in the residential zonings is likely to contribute to some flow on effect, with regards to demand in the rural/residential market category. However due to the high amount of carry over stock in the rural lifestyle market at present, we have not seen any noticeable increase in this market.

Summary of Valuation Changes to Commercial Land

Changes since previous General Valuation (2012)

The average value change, from the last General Valuation to the current valuation (2015), calculated across the aggregated business zones is 27.30%.

The escalation in values is considered representative of the general market increase over this period of time, additional entries into various components where land have been developed to a higher use and more specifically the most recent increases (see below) as evidenced by analysed sales.

Changes since previous Valuation (2014)

The average value change calculated across the aggregated commercial zones is 15.11%.

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Commercial market activity has been characterised by fairly static sales volumes (although increased volumes for commercial zoned residential units has been apparent). As noted previously , on limited sales evidence we are noting the tightening of reflected commercial yields and commercial mixed development site activity has greatly increased both recently and since 2012.

Increased interest from investors borrowing for self-managed superannuation funds has encouraged investment in commercial property particularly for the low to mid end of the market. It is likely as the residential sector normalises we will see commercial yields continue to tightened to the more historical levels, which are sub 5.5% for the prime retail strip in Kiama, however with a number of large developments coming on line with increases to the retail and office floor space areas, this may also have an impact on yields.

Summary of Valuation Changes to industrial Land

Changes since previous General Valuation (2012)

The average value change, from the last General Valuation to the current valuation (2015), calculated across the industrial zones is 16.57%.

There are only some 8 IN2 industrial properties and 6 IN4 working waterfront properties within Kiama LGA and as such these properties are thinly traded with little movement in value.

Changes since previous Valuation (2014)

The average value change calculated across the aggregated residential zones is 10.02%

Industrial market activity has been characterised by ongoing historically low sales volumes, contributing to a modest movement in underlying land values.

Much of the ‘light industrial’ business activity now occurs in B7 Business Park zoned lands under the 2011 LEP

Self-managed superannuation funds investment has also played a part in this market segment, although to a less degree. There is a reasonably high level of owner occupation and overall yields remain steady and rental increases are limited to CPI adjustments. Vacancy rates appear reasonably steady through most industrial centres.

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Table of Contents

Executive Summary ...... 2 LGA Overview ...... 14 State and Local Government Legislation for LGA ...... 24 Market Overview & Sales of Particular Interest ...... 25 Significant Issues and Developments ...... 34 Significant Value Changes ...... 36 Graphical overview of sales ratios ...... 37 Overview of the Quality Assurance Process ...... 40

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LGA Overview Location of the district

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Demographics

The Tables below summarises the Population and Demographic Statistics for Kiama. The table has been sourced directly from the Australian Bureau of Statistics 2011 Census.

Population by Age group - Persons 2009 2010 2011 2012 2013

Population by Age group - Persons - 0 to 14 years (%) 17.6 17.5 17.4 17.2 -- Population by Age group - Persons - 15 years to 24 years (%) 13 12.7 12.3 12 -- Population by Age group - Persons - 25 years to 34 years (%) 8.5 8.6 8.4 8.3 -- Population by Age group - Persons - 35 years to 44 years (%) 11.9 11.7 11.7 11.5 -- Population by Age group - Persons - 45 years to 54 years (%) 15.9 15.5 15.2 14.9 --

Population by Age group - Persons - 55 years to 64 years (%) 13.9 14.3 14.8 15.1 -- Population by Age group - Persons - 65 years to 74 years (%) 9.6 10.1 10.6 11.2 --

Population by Age group - Persons - 75 years to 84 years (%) 6.8 6.7 6.7 6.7 --

Population by Age group - Persons - 85 years and over (%) 2.8 2.9 2.9 3.1 --

LABOUR FORCE STATISTICS - Census 2011 2009 2010 2011 2012 2013 LABOUR FORCE STATISTICS - Labour Force (no.) -- -- 9 605 -- -- LABOUR FORCE STATISTICS - Unemployed (no.) -- -- 417 -- -- LABOUR FORCE STATISTICS - Unemployment rate (%) -- -- 4.3 -- -- LABOUR FORCE STATISTICS - Participation rate (%) -- -- 58.3 -- --

BUILDING APPROVALS - Year ended 30 June 2009 2010 2011 2012 2013 BUILDING APPROVALS - Total private sector houses (no.) 20 24 35 14 -- BUILDING APPROVALS - Total new private sector houses (no.) 20 24 35 14 -- BUILDING APPROVALS - Total dwelling units (no.) 24 40 39 28 -- BUILDING APPROVALS - Value of total private sector houses ($m) 9.3 9.9 12.4 8.1 -- BUILDING APPROVALS - Value of new private sector houses ($m) 5 6.5 9.3 4.4 -- BUILDING APPROVALS - Value of new residential building ($m) 5.6 11.2 9.9 7 -- BUILDING APPROVALS - Value of total residential building ($m) 10.7 15.7 13.9 12.1 -- BUILDING APPROVALS - Value of total non residential building ($m) 4.2 11.1 3.4 0.3 -- BUILDING APPROVALS - Value of total building ($m) 14.9 26.8 17.2 12.4 -- BUILDING APPROVALS - Average value of private sector houses ($'000) 464.4 412.6 355.3 578.3 --

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According to the most recent 2011 Census, the Kiama LGA had a population of 19,986 people. Whilst the area’s initial population growth stemmed from dairy farming and mining, more recent growth has been attributed to the lifestyle opportunity the area presents.

A seaside location and rural outlook have made Kiama a sought after residential area for retirees and people seeking to live in there and commute to work in other areas.

Kiama has a resident workforce of 9,602 people, most of whom are employed in either professional, trade, clerical or service oriented positions. When compared to overall WSD figures, Kiama has a high proportion of its workforce employed as managers (indexed at 1.37) and professionals (indexed at 1.23).

Kiama does not provide for any substantial industrial development with little land available for industrial use. At the completion of local blue metal quarry activities it is likely that additional land will become available for a number of light industrial activities.

Due to technological change, the Municipality’s close proximity to Sydney and Wollongong and the area’s environmental attraction, it has become increasingly popular for people to move to the area and work from a home office. The local Council has encouraged this activity through changes to its Local Environmental Plan. Kiama Council pursues a policy "to enhance and protect the quality of life of their residents and the unique environment of their area" by actively encouraging environmentally sustainable development.

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Principal towns

Gerringong - Gerroa - Werri Beach

General Description Gerringong – Gerroa – Werri Beach comprises three townships and surrounding rural areas.

Gerringong – Gerroa – Werri Beach is bounded by the locality of Kiama Heights in the north, the Tasman Sea in the east, Shoalhaven City in the south and the localities of Toolijooa, Willow Vale and Rose Valley in the west.

Settlement of the area dates from 1814, with land used mainly for timber-cutting and dairy farming. The township of Gerringong was established in the 1850s. Growth took place in the late 1800s, aided by the construction of the railway line. The most significant development occurred during the post-war years. The population has been relatively stable (up 440) between 2006 and 2011, a result of some new dwellings being added to the area, but a decline in average household size. Rural land is used mainly for dairy farming and rural lifestyle pursuits.

Major features of the area include Seven Mile Beach National Park, Werri Beach, Werri Lagoon, Gerringong Golf Club and one (infants/primary) school.

Population The population of this precinct as at the 2011 Census was approximately 4,606

Market Demand and Activity Market Demand – market demand has increased over the valuation year with sales occurring in all classes of residential property ranging from beachfronts to vacant lots in the “Elambra” residential Estate (now fully sold) and a previously released strip of residential land adjacent to the Headland Reserve in Tasman Drive, both at Gerringong. Tasman drive has had some recent re-sales of vacant parcels and also some highly improved sites.

Sales activity in Gerringong, Werri Beach and Gerroa picked up significantly during the previous period and continued during the current period.

These suburbs are dominated by absentee holiday homes and sales activity is historically quite variable. However sales this period consistently showed an increase to underlying land values on top of an increase applied last period. Some areas of these suburbs are prone to wide fluctuations according to market demand from this purchaser group and these areas such as Pacific Avenue Werri Beach are closely monitored.

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Kiama - Kiama Heights

General Description Kiama – Kiama Heights is a township area with surrounding rural areas. Kiama – Kiama Heights is bounded by the localities of Kiama Downs and Bombo in the north, the Tasman Sea in the east, the locality of Gerringong in the south and the localities of Saddleback Mountain, Jerrara and Jamberoo in the west.

Settlement of the area dates from the 1810s, with land used mainly for timber-getting and farming. The township of Kiama was established in the 1830s, developing as a shipping and servicing centre for the local dairy farming and quarrying industries. Growth took place in the 1880s and 1890s, spurred by the construction of the railway line. Expansion continued in the interwar period, with the area becoming a popular holiday retreat. Significant development occurred during the post-war years. The population has been relatively stable (up 676) between 2006 and 2011, a result of some new dwellings being added to the area, but a decline in average household size.

Major features of the area include Kiama Blowhole, Kiama Sports Complex, Pilots Cottage Museum, Kiama Hospital, Council Offices, Bonaira Native Gardens, Hindmarsh Park, various beaches and three schools.

Population The population of this precinct as at the 2011 Census was approximately 7,164.

Market Demand and Activity Market Demand – market demand has been consistent in this area with the wider LGA, with good demand continuing for all classes of residential property ranging from beachfronts to vacant lots.

High volumes of exchanged sales in a newly released residential estate in Kiama are yet to be recorded.

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Kiama Downs - Minnamurra - Bombo

General Description Kiama Downs – Minnamurra – Bombo is a township and rural area. Kiama Downs – Minnamurra – Bombo is bounded by the Rocklow Creek and the Minnamurra River in the north, the Tasman Sea in the east, the locality of Kiama in the south and the locality of Jamberoo, the Minnamurra River and the Princes Highway in the west.

Settlement of the area dates from the early 1800s, with land used mainly for timber-getting and farming. Growth took place in the late 1800s, spurred by basalt mining. Expansion took place in the interwar period, with the most significant development occurring in the post-war years. The population has decreased slightly (down 70) between 2006 and 2011, a result of few dwellings being added and a decline in the average number of persons living in each dwelling.

Major features of the area include Kiama Golf Club, Kiama Downs Beach, the Minnamurra River and one school.

Population The population of this precinct as at the 2011 Census was approximately 5,738.

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Rural Balance

General Description Rural Balance is a predominantly rural area in the non-coastal section of the Municipality of Kiama. Rural Balance includes the township of Jamberoo and the localities of Barren Grounds (part), Brogers Creek (part), Broughton Village (part), Budderoo (part), Carrington Falls, Croom (part), Curramore, Foxground, Jerrara, Knights Hill, Rose Valley, Saddleback Mountain, Toolijooa, Upper Kangaroo Valley (part), Willow Vale and Yellow Rock (part).

Settlement of the area dates from the 1820s, with land used mainly for timber-cutting and farming. The village of Jamberoo was established in the 1830s. Expansion took place in the late 1800s. The most significant development occurred during the post-war years. The population has been relatively stable (down 35) between 2006 and 2011, a result of some new dwellings being added to the area, but a decline in average household size. Rural land is used mainly for dairy farming and cattle grazing.

Major features of the area include Budderoo National Park (including Minnamurra Rainforest Reserve), Barren Grounds Nature Reserve, Saddleback Mountain Lookout, Minnamurra Falls, Carrington Falls, Jamberoo Recreation Park, Jamberoo Golf Club and one school.

Population The population of this precinct as at the 2011 Census was approximately 2,488.

Market Demand and Activity Market demand has been stable during the valuation year with sales occurring in all classes of rural property ranging from lifestyle holdings to dairy farms.

The majority of the vacant parcels in the recently developed residential release at Chapel Hill have been cleared. A further development at Wyalla road is also selling well.

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Main industries

Economic activity Agriculture, manufacturing and mining provide a small but secure economic base for Kiama. However, the local economy relies fairly heavily on secondary and tertiary industries such as construction, tourism, retail trade and community services.

The main agricultural activities of the area are dairy farming and cattle grazing. The gross value of agricultural produce in the 2001 season was approximately $11.6 million.

Manufacturing only accounts for approximately 3.2% of business counts in the area and is largely based on smaller light industry servicing the local market. Examples of light industries in the area include producers of vertical drapes, security doors, shower screens, printers, steel fabricators and upholsterers.

According to the Australian Bureau of Statistics Business Register, the Kiama LGA had 335 construction business locations in 2011. The value of buildings approved in the year to September 2012 totalled some $26.5 Million, more than doubling the $12.7 Million reported in September 2011 due to a strong September 2012 quarter result. Non-residential development contributed $15.1 Million during the twelve months to September 2012.

Retail trade and tourism are intrinsically linked and add considerably to the local economy. In 2011, the Kiama area had 120 retail business counts.

Industry Sector of Employment 2011

ABS, 2011

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Significant retail centres

Kiama provides the dominant retail centre for the LGA and includes a single supermarket development anchored by Woolworths and a small number of specialty stores. This site sold in the previous period and has been resold this period (detailed elsewhere and fully analysed).

The balance of the retail centre includes a range of retail and commercial uses and a significant tourist related retail and café component.

Nearby Gerringong has an IGA Supermarket and strong retail centre with approximately 60 premises. There is also a significant mixed use development underway on Belinda Street adjacent to the Noble Street car park that will add greatly to the supply of retail floor space.

In the recent past an additional IGA supermarket was established in Kiama Downs, of a similar scale and initially under the same ownership and management of the IGA supermarket in Jamberoo that has recently been re-constructed following a fire destroying the heritage building, however these businesses have since been sold to an existing IGA operator from nearby Thirroul. The IGA in Jamberoo has been in the Fredericks family since inception.

Kiama Municipal Council (KMC) purchased a commercial development site in Shoalhaven Street Kiama (old Weston print site) and this site together with the adjoining property owned by KMC (Akuna Street Car Park) was marketed by over an extended period by MMJ Real Estate as a super market site. KMC has been very proactive is trying to encourage another major supermarket to the township as well as a second service station. The 2nd service station issue appears to have been resolved with the re-opening of service station facilities previously mothballed at Glen Fulton Motors, Collins Street Kiama. Kiama Municipal Council also recently purchased another strategic site adjoining the Akuna Street car park site with a view to facilitating a further supermarket development within the Kiama township. We are advised this project is progressing, however no further developments have occurred.

Kiama retail growth continues to be limited by substantial competition from regional retail and bulky goods centres at nearby Shellharbour and Wollongong.

The Stockland development at nearby Shellharbour Square has been the subject of a very significant upgrade in recent years to the tune of some $22,000,000.

Following this major upgrade, GPT in Wollongong has just completed a similarly significant development and expansion to their major retail and commercial development in Crown Street Wollongong. These centres continue to cause leakage from the Kiama commercial centre.

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Type of residential development

The Kiama LGA contains a number of townships and villages, with the majority of development located around the townships of Kiama, Kiama Downs (including Minnamurra and Bombo), Kiama Heights, Gerringong, Gerroa and Jamberoo.

The region encompasses several types of residential developments. The majority of residential properties in the region are single residential dwellings followed by a large number of rural residential dwellings located in rural locations on both hobby and larger farms.

Most of the town ships have an increasing number of unit or mixed use developments mostly located close to town centres.

Dwelling Structure, 2011

ABS, 2011

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State and Local Government Legislation for LGA State & Local Government Legislation of LGA

Planning Controls & Instruments – Kiama Municipal Council utilises several planning & control instruments. They are: • Kiama Local Environmental Plan 2011 • Kiama Development Control Plan 2012 • Development and Subdivision Engineering Standards and Planning Guidelines • Illawarra Regional Environmental Plan No. 1 • 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) on 20 September 2011, which 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.

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Market Overview & Sales of Particular Interest Residential

Residential development in the LGA has traditionally been dominated by detached dwellings, however the past decade has seen strong growth in demand for and construction of residential apartment developments. Activity in this sector has increased markedly in the last period.

We understand there continues to be a strong push from the NSW Government to increase provision for housing and future population growth in the Kiama LGA. This resulted in large tracts of land being rezoned R3 Medium Density during the review of the Kiama LEP 2011.

However the current review of the Draft Regional Growth Strategy may also see more pressure on local councils to release more rural land for residential development.

Kiama LEP presently limits building height to varying levels generally not above 3 storeys in “Business” zoned localities. This has previously limited a significant increase in development in the township, however the improvements in values has kick started various mixed use developments.

In relation to residential land releases, Kiama Council released Stage 7 (40 lots) of the Elambra Estate at Gerringong in 2011. This stage sold out during the previous period, with only other minor in fill developments providing new vacant land in Gerringong.

Much of the previous carry over supply of residue vacant lots in subdivisions at Kiama (Cedar Grove and West Kiama) has been absorbed with the last few lots showing a premium.

A new development on South Kiama Drive was marketed for pre-sales during the previous period and some 25 out of the first stage of 33 lots were sold and what now appears to be at the lower end of fair market value (in the vicinity of $225,000 to $240,000). Civil works have just concluded on this site and lots are now being marketed (including sold previously sold) for circa $350,000.

A recent completed development at Jamberoo (Chapel Hill) is predominantly sold and sales at a nearby development on Wyalla Road are also well advanced (prior to works commencing).

The Kiama LEP 2011 did not identify any new land releases for R2 Low Density Residential Development within the Kiama LGA. However a site south of Cedar Grove Estate was approved for a 101 lot residential subdivision via a re-zoning through the gateway planning process. Civil works are underway with this estate will I understand pre-sales in the order of 90 plus lots.

Once complete, this site appears to once again exhaust the available residential land within the Kiama township.

Retirement Development – Kiama Council completed Stage 5 of the Bluehaven Retirement Complex in central Kiama in 2010 with the site now fully developed and occupied.

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As outlined previously within this report KMC has also expressed interest in acquiring the Kiama Hospital site and re-developing this site for aged care uses and the development application is now on public exhibition.

Given the proximity of Kiama LGA to Sydney, it would be reasonable to expect substantial ongoing demand for retirement accommodation. Kiama was recently quoted as having the highest population of Veterans in Australia. Kiama Council continues to maintain a dominant position in the local provision of retirement accommodation; however I understand there is other proposal currently in planning.

Building Approvals - The table below provides a summary of the building approvals for the Kiama LGA from the 2001/02 period until current including year on year change.

The key points from this data include the ‘boom period of the early 2000’s which has not yet been surpassed by the more recent property boom (currently underway), however the trend is increasing.

Data for the most recent financial year was not able to be sourced at the time of writing, however is likely to show a continuing increasing trend. Annual Municipality of Kiama Number change

Year (ending June 30) Houses Other Total Houses Other Total 2013-14 22 39 61 +16 +39 +55

2012-13 6 0 6 -8 -14 -22

2011-12 14 14 28 -24 +12 -12

2010-11 38 2 40 +13 -13 0

2009-10 25 15 40 +5 +11 +16

2008-09 20 4 24 +10 -2 +8

2007-08 10 6 16 -14 +4 -10

2006-07 24 2 26 -3 -2 -5

2005-06 27 4 31 -4 -6 -10

2004-05 31 10 41 -8 -7 -15

2003-04 39 17 56 -44 -23 -67

2002-03 83 40 123 +13 -61 -48

2001-02 70 101 171 ------

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Source: Australian Bureau of Statistics, Building Approvals, Australia (8731.0). Compiled and presented in profile.id by .id the population experts

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Market Activity

A graphical illustration of market activity for typical properties from the last valuation issued compared to previous periods is displayed below.

The first graph gives a general overview of market activity in the Kiama LGA over consecutive periods illustrated by total number of sales in each twelve month period (with adjustments for related party sales, part lots and the like).

The most recent period shows that the volume of sales has extended the recovery from the previous valuation year as conditions improve from the depressed market conditions following the GFC in 2008. In fact the number of sales in the current period has extended beyond the trend line on the back of buoyant market conditions in metropolitan areas. Generally, the increased activity has occurred in both newly developed subdivisions and mixed use developments, while the more established areas of town continue to remain more tightly held, however, still well traded.

Sales activity since the base date also appears to have continued and this is consistent with general buoyant market conditions that are currently evident.

Total Number of Sales 900 800 700 600 500 400 300 200 100 0

Total Number of Sales Linear (Total Number of Sales)

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Median sale price

The Median sale price is considered to be a reliable measure for determining valuation trends over time in non-uniform populations and as such it is often quoted when demonstrating changes in property values over consecutive periods.

The second graph below shows the median price of all residential sales in the Kiama LGA over 12 month consecutive periods (again adjusted to remove obvious non market and related party transactions).

The median value has risen quite significantly during the current period when compared to the previous base date. This increase is the most significant movement since the 2009/2010 when government stimulus measures following the GFC were evident and in 2003/2004 period being recognised as the previous boom in the local property market.

Median Sale Price ($) $600,000.00

$500,000.00

$400,000.00

$300,000.00

$200,000.00

$100,000.00

$0.00

Median Value Linear (Median Value)

The median sale price data expressed graphically above is based on all sales recorded in the current period less a small number of sales identified as related party transactions and sales of part lots.

The median sale price data for residential property quoted elsewhere is this report is sourced from IRIS research as indicated.

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The further graph below illustrates the median sale price (March quarter only) for all sales in Kiama LGA from March 2002 to March 2015. This data is further graphed against the median house sale price in the entire state of New South Wales with associated tend lines.

Median House price per March quarter 700,000

600,000

500,000

400,000

300,000

200,000

100,000

Kiama New South Wales Linear (Kiama) Linear (New South Wales)

Residential Zoned Land Values

There has been a noted movement in the underlying value of residential land as evidence by sales of vacant land in various estates across the local government area of Kiama.

Although not depicted in current sales evidence I am aware of a high level of pre-sales in Kiama (90+) and to a lesser extent in Jamberoo indicating continuing strong demand for vacant land in these locations.

We have analysed all vacant land sales for the current period and statistically analysed the sales against those sales in previous periods.

This analysis is represented in graphical form on the following page.

In summary, the mix of individual properties sold in each respective period in part influences the overall annual trend, however key points to note from the graph below is the increase in the median sale price in the current period.

The flatness of the number of sales from 2011 to 2013 was largely a function of the supply of vacant land within Kiama LGA during that period. The supply has increased significantly and is likely to continue to increase significantly during the next period just commenced given the recent subdivision activity.

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Graph 1 Median and Mean Values of Residential Vacant Land Sales – Kiama LGA over consecutive assessment periods.

Kiama LGA- Vacant Land sales 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0

Median Sale Price Mean Sale Price Standard Deviation

Graph 2 Number of Residential Vacant Land Sales – Kiama LGA over consecutive assessment periods.

Kiama LGA- Number of Vacant Land Sales 120 100 80 60 40 20 0

Number of Sales

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Graph 3 Residential 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

Elambra Estate is a large 200 plus lot staged release residential estate to the South West of the main shopping strip in Gerringong. This land released by Kiama Council represents the largest parcel of land developed in the LGA over recent years and the development is now complete and fully sold.

The following chart summarises the statistical measures for vacant land sales over consecutive periods in Elambra Estate Gerringong. Stage 7 in Elambra is the final stage of this KMC developed residential estate and is now fully sold.

The last period showed an increased mean and median sale price, largely as a factor of the lack of supply and market knowledge of limited future land releases as well as strong demand generally.

These allotments are on the south western edge of this estate, are generally larger than the previous releases and this has influenced the end lot price as well.

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Commercial The activity in the commercial sector continues to be relatively stable; however signs of recovery are apparent in terms of sales activity and general enquiry in response to limited supply.

There was a higher than average number of large commercial development sites for sale in the local market, however with strong development site sales activity over the last period, this situation is no longer apparent.

I understand some pre-sales have occurred in developments with recent development consent, some of which are yet to commence construction. A number of smaller mixed use development sites I understand are fully sold.

There have been limited improved sales to determine current yields in this market sector. However evidence elsewhere would suggest yields are experiencing downward pressure as evidenced by some unsettled sales late in the calendar year.

The key retail strip in Kiama remains fairly thinly traded, with minimal sales in the current period in the prime area of Terralong Street Kiama between Collins Street to the west and Railway Parade to the east.

However sales in fringe locations within Kiama, both on Manning Street to the east and Terralong Street to the west are indicating tightening of yields from previous periods.

There have been nil vacancies in the prime retail strip of Kiama during the current period with the last vacancies occurring during 2012 and 2013. However previous vacancies have now been absorbed and the current level of vacancies is consistent with normal market conditions in Kiama.

Rentals in this key strip have shown little growth over recent years. Leases with annual CPI or fixed increases are showing passing rentals often in excess of market rentals, with Landlords reluctant to either review to market or pass on increases due to the possibility of losing tenants.

Valuation of the Business Component benchmarks indicates some minor changes against the 2014 Land Values. Given the unique of the mix of sales in this period, the business zoned properties were review against all sales, particularly those with a Heritage basis. Development sites sales accounted for the greatest increase.

Rural and Environmental

The number of Rural and Environmental zoned sales in the current period was in line with previous periods.

Analysed sales in these zoning are somewhat uneven which is not uncommon given the inherent features of these properties.

We are yet to see a significant change in rural and lifestyle property values (inclusive of environmental protection zonings) whereas the residential sector has certainly shown a noticeable improvement over the current period.

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This market continues to be watched with interest to see if the current sentiment in the residential sector spreads to this lifestyle market.

A number of high value sales have been documented earlier in this report and all settled sales of note have been analysed.

Significant Issues and Developments

Significant Developments – From Prior to Current Annual Valuation

There have been a number of significant developments within the Kiama LGA over the current period, the majority of which I understand the applications for development were processed via Kiama Municipal Council planning staff or the Joint Regional Planning Panel. Some of the key applications and consents are summarised below.

1. Civil works have been completed on two large residential development sites in Jamberoo (Drualla Road) and Kiama (South Kiama Drive) yielding 31 and 25 lots respectively. The Chapel Hill estate in Jamberoo is almost fully sold with some buyers profiting from re-sales in recent weeks. The Muna Munnora Estate on South Kiama drive had some early sales prior to civil works at what were considered to be at the lower end of fair market value (circa $240,000). These lots appear to have been purchased by local investors in blocks with a view to re-selling at a profit and lots are now being marketed in this estate for circa $340,000.

2. A proposal by KMC to acquire and re-develop the Kiama Hospital site into a large aged care facility comprising nursing home and self-care accommodation options has reached the public exhibition stage with the development application.

3. A further recent subdivision of some 17 vacant residential lots at Bombo Beach accessed via Riverside Drive and bordered by the same and the Illawarra Railway Line has also been completed, with the majority of the lots having exchanged. Sale prices range from $450,000 for the lots adjacent to Riverside Drive to $800,000 for those lots in superior positions.

4. Stage 2 – Cedar Grove – being a major new 101 lot residential subdivision is currently under construction to the south of Cedar Grove on Jamberoo Kiama, west of Kiama. Some 90 plus lots are understood to have exchanged, well before civil works began demonstrating the strong penned up demand for vacant residential lots within Kiama. Average end lots prices are understood to be circa $350,000, with the highest priced lots originally selling for $450,000. I am advised there has also been strong interest in re-sales for some lots in the estate.

5. There are a number of significant mixed use and residential strata titled developments underway and / or recently completed in both Kiama and Gerringong. These include at the following locations:

• 33 Shoalhaven Street Kiama, mixed residential and retail

• 2 Barney Street Kiama, multi-level residential Strata development

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• Noble Street Gerringong, mixed used multi-level development and a number of other residential strata developments.

• Terralong Street Kiama (opposite Kiama Village) Mixed use development.

• Manning Street Kiama - Various residential strata developments and one mixed use development

• Shoalhaven and Farmer Streets Kiama – 41 unit residential strata unit development currently under construction.

Significant Developments – From Prior to Current Local Government Council Rating Valuation

There have been a number of significant developments within the Kiama LGA over recent periods, the majority of which I understand the applications for development were processed via Kiama Municipal Council planning staff or the Joint Regional Planning Panel. The relevant planning information is summarised below:

2. The Kiama DCP 2012 is a working document that was adopted by Council on 31 July 2012. Revisions continue to this planning document with a review of the width of roads within residential subdivisions currently underway at the time of writing.

3. The Kiama Urban Strategy was adopted at a KMC meeting on the 20 th September 2011. This document I understand is still relevant.

4. The NSW Government has recently released Your Future Illawarra – being a Draft Regional Growth Strategy proposed by NSW Government and up for public comment. There were various public meetings scheduled to review this draft plan, which I understand has not yet been finalised.

5. The Department of Planning and Environment NSW held a community forum regarding the draft Regional Growth Plan on 19 th November 2014 at the Kiama Leagues Club. This meeting discussed plans that the NSW Government have for this area including:

• Setting proposed housing targets within Kiama to 2031

• Proposed draft actions including “exploring the potential to shift planning controls In Kiama and Gerringong town centres to generate more feasible housing supply in the existing urban areas” and

• Plans for greenfield sites such as South Gerringong

• Housing targets proposed for Kiama in the draft regional growth plan to 2031.

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6. Elambra estate is now fully sold and at the time of writing there is no further significant land parcel identified for future release.

Significant Value Changes

Significant Value Changes – From Prior to Current Annual Valuation

Most significant value changes within the Kiama LGA have resulted from the realignment of values (handcrafting) in line with the most recently analysed sales evidence.

Genuine market escalation has occurred within the residential sector with most increases limited to within 10% to 15% of previous value levels. The increased demand in most residential areas has occurred over the past two periods and is spread over all market segments. Englobo residential development sites have increased in values significantly.

The rural market (incorporating environmental protection zoning), in general, has been largely static. This market is somewhat oversupplied with stale stock. Any new reasonably priced listings clear very quickly, however demand has not increased significantly in this period, nor have values. A number of top end sales have occurred and these have been discussed previously within this report.

Significant Value Changes – From Prior to Current Local Government Council Rating Valuation

As per above – The majority of the rural market has not experienced a significant change since the previous LG year in 2012, whereas residential has escalated strong in the past 12 to 24 months.

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Graphical overview of sales ratios Residential Zoned Properties.

R2 Low Density Residential sales

Ratio of Values to Sales for KIAMA (2015) - R2 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 R2 R2 R2 R2 R2 R2 R2 R2 R2 R2 R2 R2 R2 R2 R2 R2 R2 R2 R2 R2 R2 R2 R2 R2 R2 R2

LV Adj LV

R3 Medium Density Residential and R5 Large Lot Residential sales

Ratio of Values to Sales for KIAMA (2015) - R3 & R5 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 R3 R3 R3 R3 R3 R3 R3 R3 R3 R5 R5 R5 R5 R5 R5 R5

LV Adj LV

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Business Zoned Properties

B1 Neighbourhood Centre, B2 Local Centre and B7 Business Park Business zoned sales Ratio of Values to Sales for KIAMA (2015) - Business Zones 2,500,000

2,000,000

1,500,000

1,000,000

500,000

0 B1 B2 B2 B2 B2 B2 B2 B2 B7 B7 B7

LV Adj LV

Industrial Zoned Properties

There were no sales in the current period to generate data.

Environmental Zoned Properties

E3 Environmental Management sales Ratio of Values to Sales for KIAMA (2015) - E3 5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

0 E3 E3 E3 E3 E3

LV Adj LV

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Rural Zoned Properties

RU1 Primary Production and RU2 Rural Landscape sales Ratio of Values to Sales for KIAMA (2015) - Rural Zones 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 RU1 RU1 RU1 RU2 RU2 RU2 RU2 RU2 RU2 RU2 RU2 RU2 RU2 RU2 RU2 RU2 RU2 RU2 RU2

LV Adj LV

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Overview of the Quality Assurance Process

LPI has been provided with a detailed Valuation Analysis Report, which details the Quality Assurance Process of Walsh & Monaghan and outlines that the Verification process and certified that Land Values meet all Statistical Measures and Component Data Analysis. In addition, a Quality Statement and lists 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 basis 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 Procedures Manual Version XX. 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.

Report prepared by:

Adam Hopcroft AAPI

Registered Valuer 3683

Contract Services Manager.

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