final report 2017 · 2017-12-12 · plant & machinery valuation general & insurance...
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Preston Rowe Paterson
Newcastle & Central Coast Pty Ltd ABN 70 137 496 845
PO Box 1740 Newcastle NSW 2300
98 Hannell Street Wickham NSW 2293
T +61 2 4922 0600
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PO Box 128 Gosford NSW 2250
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T +61 2 4324 0355
F +61 2 4324 0356
www.prp.com.au
Corporate Property Services
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Transaction advisory
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Listed fund, property trust, super fund &
syndicate advisors
Plant & machinery valuation
General & insurance valuation
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Independently owned and operated
Directors
Robert R Dupont FAPI MSIZ CPV
David A Rich AAPI CPV
Colin Pugsley FAPI CPV
Residential, commercial, industrial, rural and
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finance, asset, insurance, statutory court
proceedings, taxation and other purposes.
Liability limited by a scheme approved under Professional Standards Legislation.
Final Report 2017
LAKE MACQUARIE CITY LOCAL GOVERNMENT AREA (004)
Submitted: 2nd November 2017
Preston Rowe Paterson is one of Australia’s most
experienced and well-regarded property services
companies with expertise across the full spectrum of
property classes.
Specialising in valuation, advisory and property
management, we provide value added and risk
adverse solutions to a wide range of property
decision makers including; owners, investors and
tenants.
Above all else we believe that our people are our
most important asset. Our team prides itself on its
integrity, honesty and transparency.
Our services include:
Real Estate investment valuation
Real Estate development valuation
Property consultancy & advisory
Transaction advisory
Property & asset management
Listed fund, property trust advisors
Super fund and syndicate advisors
Plant and machinery valuation
General insurance valuation
Property market research
Preston Rowe Paterson is a growing and
sustainable national business that harnesses the
energy of local ownership that ensures expert
local knowledge in all the areas we operate in.
Valuation Report
1
Executive Summary
LGA Overview
The Lake Macquarie City Council area is located in the Hunter Region of New South Wales, about 90
kilometres north of Sydney. The Lake Macquarie City LGA has a total land area of about 787.4 km². It
adjoins with the Newcastle LGA in the north, Central Coast Council LGA in the south, and Cessnock in
the west. The Lake Macquarie City Council LGA comprises Residential, Rural, Commercial, Industrial,
Infrastructure, Environmental, Waterways and Public and Private Recreation zones. The Lake
Macquarie City LGA property market has experienced increases in values broadly across all sectors.
Overall land values increased 13.38% between 2016 and 2017.
Lake Macquarie City Local Government Area
Lake Macquarie City has one of the biggest salt water lakes in Australia with a circumference of 174km
being about twice the size of Sydney Harbour. To the east there is about 11km of coastline with four
patrolled beaches. To the west is the Watagan Mountains.
Number of properties valued this year and the total land value in dollars
80,405 properties were valued this year with a total land value of $28,146,909,470.
80,405 properties were valued for Base Date 1 July 2017, and valuations are reflective of the property
market at that time. Previous Notices of Valuation were issued to owners for the Base Date of 1 July
2016.
There was a strong increase in residential zoned land of around 13% overall from the previous year.
Rural zoned lands experienced the strongest increase overall of around 25% followed by
Environmental zoned land with around a 14% increase. Business zoned land similarly performed
strongly, rising by almost 12% in 2017. Non-urban and protection zoned land showing a very strong
increase of around 32% is comprised of only 12 properties within the district.
Valuation changes in the LGA and percentage changes between the Council Valuation years of 1
July 2016 and 1 July 2017 and the Land Tax Valuation year of 2016 are as follows:
Properties Valued and Total Land Value
Zone Zone Codes
Number
of
Entries
2016 Total Land
Value
2017 Total Land
Value
% Change
Base Year /
General
Valuation
Residential R1, R2, R3 71,990 $21,439,391,982 $24,278,770,172 13.2%
Business B1, B2, B3, B4, B7 2,074 $1,248,107,821 $1,392,956,831 11.6%
Industrial IN1, IN2, IN4 847 $444,674,561 $478,874,311 7.7%
Special Use SP1, SP2, SP3 479 $167,121,854 $180,835,134 8.2%
Rural RU2, RU3, RU4, RU6 1,489 $676,872,010 $845,696,850 24.9%
Environmental E1, E2, E3, E4 2,110 $712,943,420 $814,835,991 14.3%
Public Recreation RE1, RE2 1,269 $140,014,821 $143,942,571 2.8%
Undetermined/Zone
change/Miscellaneous O, P, R, Z 12 $6,341,010 $8,360,010 31.8%
Waterways W1 135 $2,637,600 $2,637,600 0.0%
Totals 80,405 $24,838,105,079 $28,146,909,470 13.3%
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Summary of Valuation Changes to Residential Land
Residential zoned land has increased by 13.2% since the 2016 general valuation year.
There was a strong increase in residential land values in the Lake Macquarie local government area
with supportive macro-economic conditions combining with a construction boom in nearby
Newcastle and continued solid take-up of residential subdivisions in urban growth areas.
Traditionally affordable areas to the west and north west of the lake such as Morisset, Cooranbong,
Boolaroo, Glendale and Edgeworth experienced strong demand, while to the east it was another
‘entry level’ profile suburb of Windale which demonstrated the highest value increases. The new
Beaches Estate at Catherine Hill Bay has also seen significant increases including strong re-sales
evidence after good initial ‘off the plan’ take up.
Summary of Valuation Changes to Rural Land
Rural zoned land has increased by 24.9% since the 2016 general valuation year.
There was a strong increase in rural land values in the Lake Macquarie local government area.
Well located properties situated within easy access of main traffic routes or on/near water frontages
experienced continued demand. Some properties with inferior access/topography and/or limited
building potential have shown little or no increase in values.
Summary of Valuation Changes to Commercial Land
Commercial zoned land has increased by 11.6% since the 2016 general valuation year.
There was a strong increase in commercial land values in the Lake Macquarie local government area,
a trend driven by the continued growth in surrounding residential subdivisions.
The main commercial centre of Charlestown (which includes many high value entries) showed a more
pronounced increase than other commercial centres which influenced the overall result. This strong
growth is consistent with nearby commercial centres within the Newcastle LGA off the back of
increased investment associated with the construction boom occurring in and around the Newcastle
CBD.
Increased sales activity within the Morisset Business Park demonstrated very strong increases in values
influenced by the continued growth in the nearby residential suburbs of Morisset and Cooranbong.
Whereas the Toronto commercial strip centre showed only a slight increase.
Summary of Valuation Changes to Industrial Land
Industrial zoned land has increased by 7.7% since the 2016 general valuation year.
Lake Macquarie has several industrial estates scattered around Lake Macquarie, including larger
estates close to the M1 Motorway leading to Newcastle, such as Morisset to the south and Cameron
Park to the north. There are smaller coastal and lakeside estates based at Redhead, Caves Beach,
and Toronto, as well as inland estates servicing Cardiff, Edgeworth, Bennetts Green, Gateshead,
Rathmines/Teralba, and Barnsley. Industrial values within individual industrial centres for 2017 have
increased overall across Lake Macquarie by 3 -10% from the prior year.
Small increases were seen in the more southern and western suburbs of Lake Macquarie – at
Bennetts Green, Gateshead/Whitebridge, and Barnsley with slightly greater increases occurring in
Edgeworth and higher increases of 7% in Cardiff/Boolaroo, Morisset/Cooranbong, Caves Beach,
Redhead, and Toronto.
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More significant increases of were seen in the smaller industrial areas of Rathmines/Teralba and
Cameron Park. Cameron Park being in alignment with the closely comparable Newcastle industrial
estate at Beresfield – both easily accessing the main transport route, the M1 Motorway.
Significant increases occurred in the newer section of Cardiff – along Munibung Road, Boolaroo
bringing this area more in line with the older/more established Cardiff industrial values.
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TABLE OF CONTENTS
Executive Summary 1
Disclaimer – Purpose of this Report 5
LGA Overview 5
State and Local Government Legislation for LGA 8
Market Overview and Sales of Particular Interest 9
Significant Issues and Developments 11
Overview of Quality Assurance Process 12
Author 13
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Disclaimer – Purpose of this Report
The purpose of this report is to describe the process and considerations for the 1 July 2017 Valuation of
Lake Macquarie Council. The report has been produced on behalf of the Valuer General.
The land values have been specifically made for rating and taxing purposes. Land values produced as
part of this process should not be used for any other purpose without the specific agreement of the Valuer
General.
Land values must have regard to specific requirements and assumptions in rating and taxing legislation.
Consequently these valuations may vary from market levels.
The land values have been determined using a methodology prescribed by the Rating and Taxing
Valuation Procedures Manual. The manual allows mass valuation methodologies that involve assessing
large numbers of properties as a group to be utilised where appropriate. Mass valuation methodologies
are by their nature likely to be less accurate than individually assessed valuations, however are utilised
worldwide for rating and taxing purposes to deliver valuations within an acceptable market range.
Town planning, land use and other market information contained in this report has been compiled based
on enquiries undertaken during the valuation process. Third parties should make their own enquiries into
these details and should not rely on the contents of this report.
The Valuer General disclaims any liability to any person who acts or omits to act on the basis of the
information contained in this report.
More information on the valuation process is available from the Property NSW website at
www.PNSW.nsw.gov.au/valuation.
LGA Overview
Location of the District
The Lake Macquarie City Council area is located on the east coast of Australia in the Hunter Region
of New South Wales. It is about 60 minutes to Sydney on the M1, 10 minutes to Newcastle, 25 minutes
to the Port of Newcastle, 35 minutes to Hunter Valley wine country and 40 minutes to Newcastle Airport.
The Lake Macquarie City LGA has a total land area of about 787.4km². It connects with Newcastle
City LGA in the north, Central Coast Council LGA in the south, and Cessnock in the west.
Principal Towns
The centrepiece of the Lake Macquarie district is a lake about twice the size of Sydney Harbour,
recognised as one of the largest coastal saltwater lakes in Australia. Around the lake and along the
coastline are town centres and villages.
Swansea is the southern entrance to the city and is located at the entrance to Lake Macquarie.
Includes a small commercial centre mostly in a strip configuration with about 100 businesses including
Coles, Woolworths and McDonalds.
Belmont is the major service centre for the east of the lake offering a diverse range of retail, financial
and professional services. The commercial centre has about 250 businesses operating including the
three major supermarkets.
Charlestown Is the major retailing district of Lake Macquarie and is dominated by the major regional
shopping centre Charlestown Square. New high-rise development and major bus interchange adds
to the diverse business mix of retail, entertainment and business services. There is an estimated 500
businesses within the area with major businesses including Myer, Target, Coles, Woolworths, Big W,
Rebel Sport, Centrelink Regional Office, Department of Housing and Hoyts Cinema Complexes.
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Cardiff is dominated by industrial type retailing and automotive car yards which tend to cluster within
this location. The Cardiff Industrial Park is home to many leading manufacturers. The retailing precinct
within Cardiff is estimated to house just over 100 businesses with the three major supermarkets located
within the area.
Warners Bay has a main street which is opposite the lake. The suburb contains generally better quality
housing, a strong retail sector, and the Lake Macquarie Performing Arts Centre. The nearby
Hillsborough Road Industrial Precinct services the homemaker market and specialist manufacturing.
In the commercial centre we estimate about 150 businesses operating, including restaurants and
cafes.
Mount Hutton is a large village centre conveniently located for surrounding suburbs. Lake Macquarie
Fair is a sub-regional shopping centre and is Mount Hutton’s main retail centre. It includes two
supermarkets, one major discount department store and over 55 speciality stores. Major businesses
include Coles, Woolworths, Big W and Best and Less.
Glendale is also one of the main commercial centres within Lake Macquarie and in recent years is
becoming the logistics services and transport hub of the city. Glendale not only combines industrial
and commercial property, but substantial residential and recreational areas as well. Stockland
Glendale is another sub regional shopping centre and includes, an eight-screen cinema complex.
Hunter Sports Centre offers significant recreational grounds and good quality sports facilities. We
estimate about 100 businesses operate within the commercial centre including Bunnings, Woolworths,
Target, Coles, Kmart and JB Hifi.
Toronto is located on the western side of Lake Macquarie foreshore in close proximity to the M1
motorway. We estimate about 200 businesses operate within the commercial centre of Toronto. Major
businesses include Woolworths, Coles, and Aldi.
Morisset is designated as an emerging regional centre, with population projections indicating a
doubling of population over the next 25 years. Adjoins the Great Northern Railway Line and this centre
is located within close proximity to the M1 motorway. Morisset is the major commercial and retail
centre of southern Lake Macquarie, complimented by a large industrial park and manufacturing
industries. We estimate the commercial centre has about 100 businesses and growing, including
Coles, Woolworths, Bunnings and Sanitarium Health Foods.
Main Industries
Dantia is an independently governed entity formed and funded by Lake Macquarie City Council to
act as an economic development company for Lake Macquarie City. Their charter is to work with
various stakeholders to advance the sustainable economic prosperity of Lake Macquarie City.
According to Dantia Lake Macquarie’s economic strength is built upon its diverse landscape and
natural resource base, with key industries developing out of timber, agriculture, water and minerals.1
Further descriptions of the City’s key industries below have been sourced from Dantia.
Manufacturing and Engineering
Development of industrial lands, investment in major roads and freight rail infrastructure, new research
and development facilities, skills development and training and the rollout of the National Broadband
Network are identified as the main drivers for future manufacturing and engineering in Lake
Macquarie City.2
1 http://www.dantia.com.au/
2 http://www.dantia.com.au/engineering-and-manufacturing/
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Retail and Commercial
The City has 9 town centres serving as hubs for the local communities that circle Lake Macquarie.
Each of these centres has its own uniquely identifiable and community-based retail and commercial
precincts. Geographic dispersal makes each independently viable and successful, and facilitates
access to economically and socially diverse markets around the Lake. In addition to the town centres
is the City’s hub for commercial and retail activities, Charlestown. Home to GPT’s $840 million major
regional shopping centre, Charlestown Square, as well as a significant number of commercial and
mixed-used developments.3
Tourism
Lake Macquarie benefits from an abundance of natural beauty. Nature-based tourism, from beach,
to lake, to forest, is supported by a range of high-quality accommodation, food and entertainment
options.4
Significant Retail Centres
Lake Macquarie has some of the Hunter’s busiest centres, along with a variety of shopping strips in
each town centre. Belmont and Toronto are examples of town centres offering comprehensive
shopping facilities, featuring both national retail outlets and stores.
Charlestown Square is a major retail centre. It contains a concentration of mixed use, business, higher
order retailing, employment, professional and social services and generally includes civic functions
and facilities. It has public transport interchanges to provide public transport service and accessibility.
A redevelopment has significantly expanded the Centre, almost doubling its size to 88,000m². With
major stores including Myer, Target, Big W, Woolworths, Coles and Reading Cinemas, along with
around 280 specialty stores including JB Hi-Fi, Rebel Sport, City Beach, Best & Less. It also has
approximately 3,500 parking spaces.
Stockland Glendale features over 50,000m² of retail space, including more than 70 stores, a number
of national chains and an eight-screen cinema complex. Major stores include Woolworths, Coles,
Target, Kmart, Aldi and Greater Union.
Lake Macquarie Fair, Mount Hutton is a 15,000m² centre with parking for 850 cars. Major retailers
include B W and Woolworths and over 43 specialty retailers including the Reject Shop, Noni B, Millers,
and Bakers Delight.
Type of Residential Development
Lake Macquarie City LGA is characterised by scattered villages surrounding the lake and larger
regional centres close to transport links and major commercial centres.
Residential development has traditionally been towards the three bedroom family home, with the
2016 Census indicating that in Lake Macquarie 43.8% of all homes were this configuration, compared
to 37.2% in New South Wales.
Planning reviews and controls have been encouraging medium density housing development around
the main regional centres of Belmont and Charlestown with apartment buildings selling well.
Lake Macquarie is also home to a high percentage of the aging population and retirement villages
are numerous throughout the LGA.
3 http://www.dantia.com.au/retail-commercial/
4 http://www.dantia.com.au/tourism/
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State and Local Government Legislation for LGA
Lake Macquarie Local Environmental Plan 2014 gazetted on 12 September 2014 with commencement
28 days after gazettal, on 10 October 2014.
All zone and value changes have been accounted for in the final values.
The Lake Macquarie City Council is governed by the Lake Macquarie Local Environmental Plan 2004
and the Lake Macquarie Local Environmental Plan 2014. The LEP 2014 is based on the standardised
Local Environmental Plan prescribed by the New South Wales Legislation.
Lake Macquarie Council has development controls including the subdivision and erection of dwellings
which impacts on land values. This includes:-
Zone Minimum Allotment Size
Rural RU2 Rural Landscape
RU3 Forestry
RU4 Primary Production Small Lots
RU6 Transition
20 ha
No numerical standards
1 ha
200 ha
Residential R1 General Residential
R2 Low Density Residential
R3 Medium Density Residential
750 m2
450 m2
900 m2
Business B1 Neighbourhood Centre
B2 Local Centre
B3 Commercial Core
B4 Mixed Use
B7 Business Park
No numerical standards apply
1,500 m2
Industrial IN1 General Industrial
IN2 Light Industrial
IN4 Working Waterfront
4,000 m2
1,500 m2
Special
Activities
SP1 Special Activities
SP2 Infrastructure
SP3 Tourist
No numerical standards apply
Recreation RE1 Public Recreation
RE2 Private Recreation
No numerical standards apply
Environmental E1 National Parks and Nature
Reserves
E2 Environmental Conservation
E3 Environmental Management
E4 Environmental Living
No numerical standards apply
40 ha
40 ha
40 ha
2 ha
Waterways W1 Natural Waterways
Note:* These figures represent minimum subdivision standards as defined in the Lake Macquarie
Development Control Plan 2014. There are however exceptions that apply in regard to battleaxe
allotments, strata schemes, community schemes and permissible greater density developments as defined
within the Local Environmental Plan 2014.
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Market Overview and Sales of Particular Interest
Preston Rowe Paterson Newcastle & Central Coast (PRP) have undertaken significant analysis of the
Lake Macquarie City Council district property market to provide an accurate and reliable basis of
valuation. Just under 2,000 sales have been analysed to enable the establishment and verification of
land values as at 1 July 2017. These analysed sales also support the land value differences across
locations. Analysed sales reports are provided to Property NSW on a consistent basis throughout the
year. The added value of improvements are also analysed to enable the accurate deduction of land
values. PRP undertakes this process using the Paired Sales Approach and the Replacement Cost
Approach.
In analysing sales before or after 1 July it is sometimes necessary to adjust the contract price in terms
of market movement, depending upon particular market segment activity. In the Lake Macquarie
City LGA this year, sales and resales of residential zoned properties generally indicated increasing
values throughout the year. Residential and commercial rental analysis demonstrated a similar trend,
although the latter category is particularly difficult to interpret definitively due to lower levels of
evidence amongst highly varied properties and lease conditions.
Residential
The Lake Macquarie Council LGA encompasses a large geographic area at the southern base of
the Newcastle LGA district. The district is centred on a coastal saltwater lake coupled with 32
kilometres of coastline and encompasses a mixture of lake side, beachside, rural residential and
inland residential developments.
The district incorporates a mixture of residential dwellings inclusive of detached, semi-detached,
medium density and high rise developments. The 2016 Census data however shows that detached
dwellings comprise 88.3% of all residential dwellings within the district which is significantly higher than
the state average of 66.4%. In addition to existing residential housing stock there have been a
number of continued staged vacant residential allotments released throughout the district at
Catherine Hill Bay, Teralba, Cooranbong, Cameron Park, West Wallsend, Bonnells Bay and Marisset
Park/Trinity Point
Growth has been evident in the majority of residential locations since the previous general valuation
in 2016 with an overall increase in value of 13.2% across the district. This was comprised of:-
• Strong to very strong growth in the traditionally affordable areas of Windale, Bolton
Point, Edgeworth, Boolaroo and Glendale.
• Strong increase in Charlestown, Gateshead, Kotara and Highfields which border the
Newcastle District LGA.
• Strong growth in the coastal areas of Dudley, Whitebridge, Catherine Hill and Caves
Beach
Values adopted are supported by both vacant and improved sales analysis.
Sales of Interest:
PID 170528 – 95 Gradwells Road, Dora Creek – Sold 29/03/2017 for $7,500,000
Former poultry farm which was rezoned to residential circa 10 years ago with Development Approval
for a 263 lot residential subdivision. This sale represents a significant scale greenfield development
site, being the first one of its kind in this locality for some years.
PID 2824728 – 1 Charles Street Swansea – Sold 01/09/2016 for $1,430,000
Former Swansea Bowling Club site. Zoned R2 Medium Density Residential. Corner location with triple
street frontage comprising two contiguous lots. Improved with former bowling club and detached
dwelling and marketed with potential for adaptive reuse.
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10
Commercial
The main commercial centre of Charlestown (which includes many high value entries) showed a more
pronounced increase than other commercial centres which influenced the overall result. This strong
growth is consistent with nearby commercial centres within the Newcastle LGA off the back of
increased investment associated with the construction boom occurring in and around the Newcastle
CBD.
Values adopted are supported by both vacant and improved sales analysis.
Sales of Interest:
PID 124269 – 27 Dickinson Street, Charlestown – sold 4/02/2017 for $1,100,000
Effective vacant land sale. Located just east of the Pacific Highway in the Charlestown CBD
approximately 350 metres from Charlestown Square. Erected upon the land is a circa 1920s, single
storey timber clad and metal sheet dwelling with detached garage and shedding. Improvements
are in poor condition and considered obsolete and of no value. Sale price includes GST.
PID 2824728 – 1 Charles Street Swansea – Sold 01/09/2016 for $1,430,000
Former Swansea Bowling Club site. Zoned R2 Medium Density Residential. Corner location with triple
street frontage comprising two contiguous lots. Improved with former bowling club and detached
dwelling and marketed with potential for adaptive reuse.
Industrial
Lake Macquarie has a variety of industrial centres located in different geographic areas stretching
along the M1 Motorway (from Morisset to the south, through to Cardiff/Boolaroo and Cameron Park
to the north). Geographically surrounding Lake Macquarie, the LGA also has inland industrial
precincts at Toronto, Teralba/Rathmines, Edgeworth, Barnsley, Bennetts Green, Gateshead as well as
coastal estates at Caves Beach and Redhead.
The industrial sector has shown promising signs of growth over the last 12 months from 2016 to 2017.
Industrial users in Lake Macquarie range from domestic service industries such as the local
mechanic, boat builder to larger scale users like transport, logistics and manufacturers. There is a
continued demand in the industrial sector for larger warehousing and distribution centres with
outsourcing of logistics functions continuing to drive demand.
Attracting and retaining tenants is still a key focus for industrial building owners with demand being
greatest for those assets with strong tenants.
Leasing activity continues to be dominated by the transport and logistics industry, followed by
wholesale while manufacturing is still declining.
Demand in Lake Macquarie has been stronger for smaller industrial allotments (below 3,000 – 4,000 m2) whilst larger industrial allotments have shown lesser movement in value due to less demand.
Sales of Interest:
PID 3230538 - 20 Mayfair Close Morisset- Sold 25/10/2016 for $725,000
Vacant, irregular shaped mostly level industrial allotment of 6960 m2 with dual access in close
proximity to the M1 Motorway. Sold by Ray White for $725,000 or $104/m2 on 25 October 2016,
indicative of rising values.
PID 3578180 - 6 Woodbine Place Toronto – Sold 12/05/2017 for $473,000
Vacant, level and regular shaped allotment of 3,564 m2 was sold by Lake Macquarie Council for
$473,000 or $133/m2 on 12 May 17, indicative of rising values.
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Rural Locations within the LGA
Rural properties within Lake Macquarie LGA predominantly comprise rural/residential land parcels
with very limited true rural pursuits remaining. The types of properties are diverse ranging from
relatively remote “bush blocks” to prestige properties with waterfrontages and/or water views.
Demand has been strong for well-located properties with easy access off the M1 Motorway
because a large proportion of the buyers are from Sydney. Conversely some of the more remote
lower price properties have sold during the general strong real estate market which can remain for
sale for years when the market is weaker.
Examples of sales of vacant properties which demonstrate the increase in values since 2016 are as
follows:-
Sales of Interest:
PID 171083 - 175 Manhire Road, Wyee – Sold 31/10/2016 for $1,150,000
Vacant 32 hectare parcel. Irregular shaped rural parcel. Gravel road and partially serviced.
Generally cleared, gently undulating land. Pasture improved, boundary and paddock fencing. Relatively large vacant parcel of good quality grazing land with permanent water supply and with
dwelling entitlement with good access. Sale is indicative of higher end values in this location.
Significant Issues and Developments
Planned and recently announced projects include:
Beaches Estate at Catherine Hill Bay. Rosecorp’s development at Catherine Hill Bay has completed
four stages, representing 398 residential lots out of a total number of 556 approved lots. Around 86%
of completed lots have been sold (predominantly off the plan by the Developer) with a further 8% of
these lots re-selling privately and demonstrating significant value increases. In 2017 the median selling
price is around $485,000 – however these range from mid $300,000’s to $1,2000,000 depending upon
beach proximity/views.
Trinity Point. Trinity Point is a residential and commercial estate located on the shores of Lake
Macquarie. Proposed once completed to contain approximately 200 residential allotments, medium
density allotments, conference centre, hotel and 188 berth marina. Residential allotments have
been completed with approximately 40% sold since 2015.
Boolaroo. Following remediation, plans have been lodged with Lake Macquarie Council for a 680
residential lot development on 66 acres of the former Pasminco site.
Billy’s Lookout Estate – Teralba. A Staged 485 lot residential development commenced in 2015, and
is more than 50% complete with current sale prices ranging from $215,000 through to $380,000.
Significant Developments – From Prior to Current Annual Valuation
No significant new developments or applications outside of those permissible within the current
zoning were approved during the period. Major project approvals granted this year are mostly to
existing defined major projects comprising of modifications to coal mine approvals within the district.
Significant Developments – From Prior to Current Local Government Council Rating Valuation
The prior valuation year of 2016 was also the general valuation year.
Significant Value Changes
Significant Value Changes – From Prior to Current Annual Valuation
There were moderate to strong increases generally across all zones within the district. Significant
variations which occurred were as follows:-
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12
• Windale values increased by 29% for the period with price growth driven by strong demand for
lower valued housing stock within the LGA.
• Very strong growth of around 35% for small, generally lower valued parcels of E2 zoned land in
the west of the district around Mandalong and Martinsville within reasonable access of the M1.
Majority of E2 sales had dwelling entitlements.
• Following nominal growth in the previous base year there was strong growth generally in values
of waterfront allotments specifically in the Dora Creek, Eleebana, Wangi Wangi, Rathmines and
Balmoral localities.
• Morisset commercial increased on average by 55% reflecting increased demand and growth
as a business centre from nearby towns/villages with continuing residential subdivision releases
at Bonnells Bay, Trinity Point and Cooranbong coupled with rezoning of industrial lands to
commercial within the Morisset Business Park.
Significant Value Changes – From Prior to Current Local Government Council Rating Valuation
For this year, the general valuation base year of 2016 is the same as the previous annual valuation
year. Accordingly, comments noted for significant value changes from Prior to Current Annual
Valuation above are applicable.
Overview of Quality Assurance Process
Property NSW has been provided with a detailed Valuation Analysis Report, which details the Quality
Assurance Process of PRP and outlines that the Verification process and certifies that Land Values
meet all Statistical Measures and Component Data Analysis.
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 and that land
values are consistent with each other and that 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 reascertainment
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 7.1.
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.
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Author
Report prepared by:
Colin Pugsley
Director
Contract Services Manager
B.Ec, B.Bus(Land Ec), MBA,
FAPI Certified Practising Valuer
API Number: 68496