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Final Report 2017

Contract Area Albury

Contract No 4701772

LGA Albury City

Prepared For Property NSW

Base Date 1 July 2017

Version 1.3 Prepared Under Rating & Taxing

Procedure Manual 7.1.1

Final Report Albury City 2017

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Executive Summary

Number of properties valued this year and the total land value dollars

The Albury local government area comprises commercial, environmental, industrial,

residential, recreational, rural, village, infrastructure and recreational waterways

zones.

22,478 properties were valued for the valuing year of 1 July 2017, and valuations are

reflective of the property market at that time. Previous Notices of Valuation issued to

owners for the valuing year of 1 July 2016.

Valuation changes in the local government area and percentage changes between

the Land Tax Valuation year of 1 July 2016 and the Current Valuation year of 2017

are as follows:

Properties Valued and Total Land Value Zone Number of

Properties 2017 Total Land

Value Prior Annual

Valuation (2016) Change

Commercial 1,085 $573,893,262 $566,463,777 1.31% Environment 320 $68,089,040 $64,764,706 5.13% Industrial 613 $170,362,620 $168,465,255 1.13% Residential 19,681 $2,764,217,662 $2,695,219,591 2.56% Recreational 131 $39,260,630 $38,736,419 1.35% Rural 455 $184,191,760 $170,696,350 7.91% Village 69 $10,987,900 $10,297,459 6.70% Infrastructure 122 $42,400,030 $42,266,802 0.32% Recreational Waterways

2 $321,470 $305,000 5.40%

Total 22,478 $3,853,724,374 $3,757,215,359 2.57%

General Overview

Overall land values within the Albury local government area remained steady

between 2016 and 2017.

Land values in the residential, commercial and industrial sectors have generally

remained steady with demand being met by an adequate supply. By contrast, land

values in the rural sector had a moderate increase, which has occurred due to the


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demand for rural properties being greater than the number of properties offered for

sale.

Residential Overview

Residential land values in Albury remained steady over the last 12 months.

There are variations to this general trend however, depending on location and

demand and these include central residential areas close to the Albury CBD which

have experienced strong demand and a shortage of supply. This has led to a

moderate increase in land values in these areas.

There has been a decrease in demand for land suitable for development as duplex

and unit sites, particularly in the outer residential areas and this has seen a

moderate to strong decrease in value levels for these property types.

Commercial Overview

Commercial land values within the Albury local government area have remained

steady between 2016 and 2017.

The exception is properties located in the east Albury commercial precinct have seen

moderate increases in value levels due to increasing demand for land in close

proximity to the proposed new Bunnings development.

Industrial Overview

Industrial land values in Albury have remained stable over the last 12 months with

limited demand being met by an adequate supply.

Rural Overview

There was a moderate increase to rural land values in the Albury between 2016 and

2017.

There has been continuing strong demand for rural residential style properties with a

shortage of supply, particularly in the northern part of the local government area.


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Contents

Executive Summary ............................................................................................... 2

Contents ................................................................................................................. 4

Disclaimer – Purpose of this Report ....................................................................... 5

LGA Overview ........................................................................................................ 6

State and Local Government legislation for the local government area ................. 9

Market Overview & Sales of Particular Interest .................................................... 11

Significant Issues and Developments .................................................................. 14

Significant Value Changes ................................................................................... 15

Overview of the Quality Assurance Process ........................................................ 16

Author .................................................................................................................. 16


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Disclaimer – Purpose of this Report

This report has been prepared on behalf of the Valuer General. The purpose of this

report is to describe the process and considerations for the 1 July 2017 Valuation of

the Albury local government area.

To make a land valuation, regard must be had to the requirements and assumptions

set out in rating and taxing legislation, such as the Valuation of Land Act 1916

(NSW). Land values are also determined by the rules set out in the “Rating and

Taxing Valuation Procedures Manual”. The manual permits large numbers of

properties to be assessed using mass valuation methodologies.

Although mass valuation methodologies may be less accurate than individually

assessed land valuations, they are routinely used across the globe to deliver land

valuations for rating and taxing purposes that are within an acceptable range of

variation. Consequently, land valuations from the Valuer General may vary from an

individually assessed market valuation for a parcel of land. All land valuations are,

however, subject to a risk based verification process which ensures each parcel of

land is individually reviewed periodically.

Whilst the content of this report has been prepared with all due care and skill, the

Valuer General does not warrant that it is complete or free from error.

During the valuation process, information is compiled from third party sources, such

as information relating to town planning, land use, zoning and other market related

information. The Valuer General is not responsible for,

and makes no warranty in relation to, the accuracy, currency, reliability or

completeness of that information. Readers are directed to contact the source of the

information.

The land values made in accordance with the valuation program have been made for

rating and taxing purposes only, therefore, the land values should not be used for

any other purpose. No reliance should be made on the contents of this report. To the

extent permitted by law, the Valuer General disclaims all liability to any person(s)

who relies on, or uses, any information contained in this report.

More information on the valuation process is available from the Valuer General’s

website at www.valuergeneral.nsw.gov.au/land_values.


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LGA Overview

Location of the District

Strategically positioned on the New South Wales and Victorian Border, on the banks

of the Murray River, the Albury local government area has a population of around

52,000 and is the major urban centre of the Albury Wodonga region, servicing a

regional population of around 105,000.

Albury City is considered as one of the nation’s great regional inland cities offering a

vibrant cosmopolitan feel that reflects a unique multicultural heritage.

Being located between Sydney and Melbourne on Australia's busiest inland transport

corridor, Albury is a strategic hub for commerce, retail, transport, health and

education. The city has achieved national and international recognition as a centre


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for government administration, defence, manufacturing, agricultural support services,

sport, festivals and the arts.

Note: The above information has been sourced from the Albury City Council Website.

Principal Towns

Albury

The City of Albury comprises several urban areas together with outlying rural

residential fringe areas; however, the main Central Business District (CBD) of Albury

is the core commercial area. The population of Albury City is around 52,000 and

offers a wide range of retail goods, services and businesses typical of a regional

centre of this magnitude. Further, the city offers public and private hospital services

together with several specialist medical centres, a number of public and private

schools of a high calibre, child care centres and Charles Sturt University and the

Riverina Institute of TAFE.

Albury City is highly considered for its tourism with the Murray River and Lake Hume

forming portions of the city boundaries and the town centre itself with many historic

buildings, the new state of the art Murray Art Museum Albury, the Botanic Gardens,

the attraction for shoppers with a large retail centre and additional attractions nearby

such as the Victorian Snowfields, the historic town of Beechworth and the

Rutherglen Wine Region.

Main Industries

Albury is located on the Hume Highway and the Great Southern Railway Line, the

main transport links for industry between Sydney and Melbourne. The surrounding

rural areas support the local industry with agriculture underpinning many of the local

businesses. Albury has a number of varied types of industry and provides the base

for businesses including although not limited to: Norske Skog, Milspec, DTD

Engineering, Geofabrics, Mountain H2O, The Riverina Dairy Pty Ltd, Apex Tool

Group, Macfab Engineering, Overall Forge and the Australian Tax Office.


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The neighbouring city of Wodonga also has significant industry making its home

there, which assists Albury in boosting the overall available population base.

Significant Retail Centres

The retail hub of Albury City is located in the Albury CBD with two major mall type

complexes and numerous specialty stores and supermarkets located along and near

Dean Street. In particular, the Myer Centrepoint Shopping Centre (Myer and

Woolworths are anchor tenants) and West End Centro (with Kmart and Coles as

anchor tenants) are the two major retail centres. The recently refurbished Mates

Building and City Walk Arcade are also well situated along the ‘ant track’ of Albury.

In addition, there are the large warehouse style buildings occupied by Dan Murphy’s

Liquor, First Choice Liquor, Aldi Supermarket, Rebel Sports, Bunnings Warehouse,

SuperCheap Auto, Autobarn, Ishka, Adairs and many other retail offerings in smaller

premises.

There are two additional shopping centres of note in outlying areas with Lavington

having a core commercial precinct which includes the Centro Lavington Square

housing a Big W and Woolworths as anchor tenants. Lavington also has an Aldi

Supermarket and a small retail shopping strip with several specialty style stores and

takeaway premises. The other shopping centre of note is the Thurgoona Plaza

consisting of a modern complex comprising a large Woolworths and several smaller

retailers including a bakery, butcher, newsagent, Hume Bank, restaurants,

takeaway’s, chemist, hairdresser, gymnasium and real estate agent.

Types of Residential Development

Albury offers a range of residential properties, comprising predominantly single

detached dwellings but also offers low density type properties, numerous strata style

units and villas, with neighbourhood and community type schemes becoming

increasingly common.


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State and Local Government legislation for the local

government area

Albury City planning is governed by the Albury Local Environmental Plan (LEP)

2010, gazetted on 13 August 2010. This plan is based on the standardised LEP

prescribed by the NSW Legislation.

There have been three amendments made to the LEP since the previous valuation.

Table of Amendments

Year Amendment

Reference Description of Amendment

2017

(453) Standard Instrument (Local Environmental Plans)

Amendment (Vegetation) Order 2017. LW 25.8.2017.

Date of commencement, 25.8.2017, cl 2.

(492) Standard Instrument (Local Environmental Plans)

Amendment (Child Care) Order 2017. LW 1.9.2017.

Date of commencement, on publication on LW, cl 2.

(493) State Environmental Planning Policy Amendment

(Child Care) 2017. LW 1.9.2017.

Date of commencement, on publication on LW, cl 2.


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Albury City Council has development controls including the Albury City Development

Control Plan 2010 that affects the subdivision and erection of dwellings which

impacts on land values. These include:

Albury City Council DCP – Minimum Allotment Sizes

Zone Category Zone Min. Allotment Size

Rural

Primary

Production and

Rural Landscape

100ha

Rural Small

Holdings 40ha and 80ha

Village Villages 4,000m2

Residential

Residential 300m2 and 450m2

Low Density

Residential

1,500m2, 2,000m2

and 4,000m2

Medium Density

Residential 450m2

Large Lot

Residential 1ha, 2ha and 10ha

Commercial

Neighbourhood

Centre 100m2

Mixed Use 300m2

Environmental

Environmental

Conservation 300ha

Environmental

Management 100ha

Environmental

Living 5,000m2


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Market Overview & Sales of Particular Interest

Residential

Residential land values within Albury City have overall remained relatively steady.

Some locations notably the central areas of Albury, including residential areas west

of Schubach Street and parts of North Albury have seen more significant although

still moderate increases.

Expansion of the Thurgoona residential corridor continues with four major property

developers active in this suburb.

Ripe englobo sites continue to be in sound demand with the sale of a 118.9 hectare

parcel located between Table Top Road and Kerr Road selling for $8.81 million with

the sale being finalised in March 2017. When fully developed the parcel could yield

up to 1,100 lots with over 420 lots planned for the first five stages.

Commercial

The Albury City commercial market remains sound with properties keenly sought by

prudent property investors when presented to the market. Albury City and the region

in general is regarded as a major progressive regional centre and has drawn

significant attention from local, regional and international investors. A 1,416m² fully

developed commercial site situated toward the eastern end of Dean Street, with

three long established tenancies, sold for $2.3 million in May 2017 and indicated a

yield of 6.47%

The revitalisation of the Albury CBD also continues with construction now well

underway for a 158 guest room full service hotel adjacent the Australian Tax Office

building in Smollett Street. The hotel is to be operated by the Mantra Group.

Construction is also well underway for a new child care centre located on the corner

of Hume and McCauley Streets, on the former NSW RTA site, with plans to open the

child care centre in early 2018.


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The commercial precinct surrounding the strategically placed Harvey Norman Centre

in East Albury is also set to expand due to an increase in vehicular traffic from the

ever expanding Thurgoona residential growth corridor. A service station has recently

been constructed to the east of the Harvey Norman Centre and two additional retail

shops including a Total Tools store of 1,600m² are planned for the area.

Sales of particular interest include:

• 435 Dean Street Albury. A 1,416m² fully developed commercial site situated

toward the eastern end of Dean Street, with three long established

tenancies, sold for $2.3 million in May 2017 and indicated a yield of 6.47%

• 524 Smollett Street Albury. A vacant commercial property limited in Stratum

with an approximate footprint of 930m², currently being developed as a multi

storey hotel. Sold for $2,200,000 in April 2017 including GST including

approved plans.

• 382 Wagga Road Lavington. An improved commercial property on a large

1.822 hectare site fronting Wagga Road. A former Mitre 10 site, sold with

vacant possession at $2,400,000 including GST in September 2016.

• 64 Borella Road East Albury. A 4,497m² vacant commercial property, with

good exposure to Borella Road. The sale at $2,007,500 including GST

included approved plans for a new showroom/warehouse comprising two

tenancies.

Industrial

The Albury City industrial market remains steady having been challenged in recent

times with the exit off shore of major employers Drivetrain Systems International and

Kimberley Clarke.

Sales of particular interest include:

• 16 Terry Court Thurgoona. A 6,827m² improved industrial property, sold with

the existing long standing tenant for $1,621,000 in December 2016 and

indicated a yield of 6.91%


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• 21 Union Road, North Albury. A 1.847 hectare improved industrial property

sold with vacant possession for $1,500,000 including GST in January 2017.

• 130 North Street, North Albury. A 7,712m² improved industrial property sold

with the existing two tenants for $1,450,000 in September 2016 and

indicated a yield of 8.5%.


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Significant Issues and Developments

Recent Significant Developments – From Prior to Current Annual Valuation

Below is a summary of significant Development Applications. Most of these

Development Applications are for developments permissible within the current

zoning therefore no special consideration is required.

New developments in discussion or underway include:

• 381 Urana Road, Lavington – Five (5) Lot Subdivision – Approved Oct 2016.

• 30 Ceres Drive, Thurgoona – Truck Depot facility & associated office,

signage, car parking & vegetation removal. – Approved Oct 2016

• 27 Maryland Way, Albury, 610 OIive Street, Albury – Bed & Breakfast

Accommodation – The Cedar – Approved Oct 2016

• 100 Table Top Road, Thurgoona – Twenty (20) Detached Self Contained

Residences – Kensington Gardens Retirement Village – Approved Oct 2016.

• 89 Table Top Road Thurgoona - Nine (9) Lot Torrens Title Subdivision &

Tree Removal - The Elms Estate Stage 7 – Approved Oct 2016

• 1 Venture Circuit, Thurgoona, 38 Hoffmann Road, Thurgoona - Three (3)

warehouses, associated offices and car parking – Approved 21/12/2016

• 521 Wagga Road, Lavington – Six (6) Lot Torrens Title Subdivision –

Approved 25/01/2017

• 12 Reiff Street, Lavington – Service Station & Signage – Approved

10/01/2017

• 10 Heron Court Thurgoona - Industrial Development - Aircraft Hanger,

Helipads, Depot, Associated Offices, Landscaping & Car parking – Approved

01/03/2017

• 47 Table Top Road, Thurgoona - Twenty Six (26) Lot Torrens Title

Subdivision and Tree Removal – Approved 27/03/2017

• 84 Ceres Drive, Thurgoona – Fourteen (14) Lot Torrens Title Subdivision –

Approved 05/04/2017


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• 357 Kerr Road, Thurgoona – 424 Lot Torrens Title Subdivision – Staged –

Thurgoona Park North – Approved 09/05/2017

• 68 Merkel Street, Thurgoona – Six (6) Industrial Warehouses and associated

offices and 5 lot community title subdivision – Approved 29/06/2017

• 5 / 424 Dallinger Road, Lavington - Thirteen (13) Industrial Workshops &

Associated Carpark, Boundary Fence, Signage & 14 Lot Community Title

Subdivision – Approved 24/02/2017

• 121 Ceres Drive, Thurgoona – Twenty two (22) Storage Units, Two (2) Lot

Torrens Title Subdivision & 23 Lot Community Title Subdivision – Approved

28/08/2017

Significant Value Changes

Significant Value Changes – From Prior Local Government Council Rating

Valuation 2016

Overall land values within the Albury City increased 1.67% since the prior Local

Government valuation year of 2016. There were no significant land value changes.


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Overview of the Quality Assurance Process

In conjunction with the detailed Audit responses, Property NSW has been provided

with a Quality Statement which certifies that Land Values meet all Statistical

Measures and Component Data Analysis. In addition, a list of high value properties

are also included with the Audit responses. Aspect Property Consultants have

carried out a comprehensive Quality Assurance Process that is certified as meeting

the requirements of IOS 9001:2015, and checks have been undertaken to ensure

that all properties have been valued, land values are consistent with each other, land

value bases 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 7.1.1. 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.

Author

Report Prepared by:

Christopher C. Attenborough API Member 68682 FAPI, CPV B. Com (Land Economy) Contract Services Manager Aspect Property Consultants

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