218 final report 2016 campbelltown - valuergeneral.nsw.gov.au · independent property valuers &...

Southern Alliance Valuation Services Pty Ltd ABN: 80 099 913 210 Independent Property Valuers & Consultants Email: [email protected] - Web: www.savs.com.au Suite 5, Level 1, 2 East Street, Five Dock NSW 2046 PO Box 697 Five Dock NSW 2046 Tel (02) 9713-9077 Fax (02) 9713-9022

FINAL REPORT

LAND TAX MASS VALUATION PROGRAMME

DISTRICT 218

CAMPBELLTOWN LGA

BASE DATE - 1 JULY 2016

Client : Valuation Services I Property NSW Department of Finance, Services and Innovation Client Reference : Contract Agreement 1415045-7 South West Metro File Reference : Final Report – Campbelltown 218

Valuation Services Property NSW Property Narrative Valuation District 218 – Campbelltown Local Government Area Property Narrative – Final Report 2016

Southern Alliance Valuation Services Pty Ltd –Campbelltown Final Report – BD 1 July 2016 of 44

Table of Contents EXECUTIVE SUMMARY ........................................................................................................... 4

EXECUTIVE SUMMARY (CONT.) ........................................................................................... 5

1.0 GENERAL DESCRIPTION OF LOCAL GOVERNMENT AREA .................................. 6

1.0 GENERAL DESCRIPTION OF LOCAL GOVERNMENT AREA (CONT). .................. 7

1.0 GENERAL DESCRIPTION OF LOCAL GOVERNMENT AREA (CONT). .................. 8

2.0 NUMBER OF VALUATIONS IN THE ZONE CATEGORIES ........................................ 9

2.0 NUMBER OF VALUATIONS IN THE ZONE CATEGORIES (CONT.) ...................... 10



3.0 TOWN PLANNING & ZONING INSTRUMENTS. ......................................................... 13

4.0 IDENTIFIED SIGNIFICANT CHANGES IN USE OR DEVELOPMENTS OF PROPERTY AND OTHER FACTORS WHICH MAY AFFECT VALUATIONS. ..... 14

4.1 Greater Macarthur Priority Growth Area ............................................................................................................... 14 4.1 Greater Macarthur Priority Growth Area (cont.) ................................................................................................... 15 4.2 South West Growth Centre .................................................................................................................................... 15 4.2 South West Growth Centre (cont.) ......................................................................................................................... 16 4.3 Status of the South West Rail Link ........................................................................................................................ 16 4.3 Status of the South West Rail Link (cont.) ............................................................................................................ 17 4.4 Campbelltown Residential Development Strategy................................................................................................. 17 4.4 Campbelltown Residential Development Strategy................................................................................................. 18 4.5 Campbelltown Employment Land ......................................................................................................................... 18 4.6 Property Market Overview .................................................................................................................................... 18 4.6 Property Market Overview (cont.) ......................................................................................................................... 19 4.7 Economy Overview ............................................................................................................................................... 20 4.7 Economy Overview (cont.) .................................................................................................................................... 20 4.8 Court Cases ............................................................................................................................................................ 21

5.0 ADDED VALUE OF IMPROVEMENTS ........................................................................... 22

5.0 ADDED VALUE OF IMPROVEMENTS (CONT). .......................................................... 23









6.0 CHANGES TO COMPONENTS ILLUSTRATED BY CHANGES TO THE EXISTING VALUE RELATIONSHIPS. ............................................................................................... 31

6.0 CHANGES TO COMPONENTS ILLUSTRATED BY CHANGES TO THE EXISTING VALUE RELATIONSHIPS. (CONT.) ............................................................................... 32

6.0 CHANGES TO COMPONENTS ILLUSTRATED BY CHANGES TO THE EXISTING VALUE RELATIONSHIPS (CONT.) ................................................................................ 33



7.0 MARKET COMMENTARY ............................................................................................... 36

7.0 MARKET COMMENTARY (CONT.) ............................................................................... 37

7.0 MARKET COMMENTARY (CONT.) ............................................................................... 38

7.0 MARKET COMMENTARY (CONT.) ................ ERROR! BOOKMARK NOT DEFINED.

8.0 MANAGEMENT OF COMPONENTS, VERIFICATION & HANDCRAFTING ........ 41

9.0 QUALITY ASSURANCE ..................................................................................................... 42

9.0 QUALITY ASSURANCE (CONT.) ..................................................................................... 43



EXECUTIVE SUMMARY

All properties in NSW are valued each year for rating and land tax purposes. All valuations are issued to the Office of State Revenue for land tax. Valuations are also issued to councils either each year or every 2nd, 3rd or 4th year. This report details the land valuation programme for the Campbelltown Local Government Area (LGA). The majority of land values are determined using mass valuation techniques. The Valuer-General's mass valuation system is applied as follows: 1) Properties that react to market forces in a similar way are grouped together in a

component, and 2) The existing values of those properties in a component are updated by a market-based

factor that is then used as a multiplier of the prior Land Value. The result is then checked by the Contract Valuer and individually verified values applied as appropriate.

The use of mass valuation techniques does have limitations, particularly over a period of time. The continued application of factors may lead to a distortion in the relativity of values within a geographical area. Some types of properties are so few in number or likely to be so sensitive to localised changes that individually verifying values is the only appropriate method. Although a mass valuation system is used to determine the majority of land values, the Valuation of Land Act requires that each land value be a market value. Each land value must be capable of being tested and supported on its own against all the available market evidence. The total number of valuation entries (as at 14 November 2016) within Campbelltown LGA was 51,873 The total land value in dollars (as at 14 November 2016) within Campbelltown LGA - $21,268,298,210 The last local government base date or year when the valuation notice was issued was for the Base Date 1 July 2015. The total land value for Base Date 1 July 2016 was $21,268,298,210, which represents a percentage change of 23.30%. The upward change reflects the overall movement for land values within the Campbelltown LGA based on market sales evidence. The majority of areas of Sydney have also been reported as increasing in values during this twelve month period. Geographically, Campbelltown LGA lies in the south western region and it would appear the value levels, on average, have steadily increased in recent years with a definite spike in the last 3 years. Residential – Overall the value of the residential market within the Campbelltown Local Government Area increased between 2015 & 2016. This movement was similar to that experienced in the surrounding areas of south west Sydney. The value movement of residential lands within Campbelltown LGA moved within a band of 10% to 32% between the Base Date 1 July 2015 and 1 July 2016. The growth in the area has been supported by high demand together with the improvements in infrastructure. Despite the various land releases in the area, supply is still considered to be low. The low cash rate has also helped facilitate increased more lending. This low cost of borrowing has enabled purchasers to



EXECUTIVE SUMMARY (cont.) extend themselves financially, thereby further increasing demand in the area. Additionally, the value offered within the Campbelltown LGA is considered to be good in relation to other Sydney metropolitan areas. The majority of transactions have been for single dwelling properties with a smaller number of transactions for dual occupancies and higher density accommodation. Commercial / Retail – Both the commercial and retail property markets within the Campbelltown Local Government Area have increased by 13% in strip retail locations and 34% in neighborhood and local centre locations. This can be attributed to improved infrastructure in the area as well as the upgrade to Glenfield Train Station. Another factor which has put upward pressure on commercial and retail values is the increase in the population living in the Campbelltown LGA, which has provided extra demand for commercial and retail space as businesses attempt to capitalise on the potential for increased clientele.

Industrial - the industrial property market within the Campbelltown Local Government Area has experienced strong growth between 17% and 26%. The area is supplied by good quality stock, however there is increased supply provided by the new, but smaller industrial estate located at Gregory Hills in the nearby Camden LGA. Additionally, there is more supply situated along the M7 corridor and in other parts of north-western Sydney. Demand for industrial land has noticeably improved over the past 1 to 2 years, with land being taken up by new industry due to the lowering of the Australian dollar resulting in an increased demand for Australia’s export goods. Compounded by the strength of the Chinese economy and their growing demand for Australian products.

TABLE OF TYPICAL VALUES

Campbelltown Contract Manager Southern Alliance Valuation Services Pty Ltd

Location Zone Size (square metres)

Address 2016 Land Value

Campbelltown Residential 556.4 2 Adelaide Ave, Campbelltown

$319,000

Bow Bowing Residential 846.9 7 Angourie Pl, Bow Bowing

$365,000

Macquarie Fields

Residential 556.4 51 Wattle Ave, Macquarie Fields

$348,000

Raby Residential 777.4 6 Wessex Pl, Raby $332,000

Wedderburn (Rural)

Rural 114,200 281 Wedderburn Rd, Wedderburn

$794,000

Wedderburn (Protection)

Protection 20,019 25 Wedderburn Rd, St Helens Park

$699,000

Campbelltown Regional Comprehensive

503 11 Galileo St, Campbelltown

$434,000

Campbelltown Industrial 4,057 5 Badgally Rd, Campbelltown

$1,390,000

Ingleburn Industrial 2,165 44 Aero Rd, Ingleburn

$653,000



1.0 GENERAL DESCRIPTION OF LOCAL GOVERNMENT AREA

The Local Government Area of Campbelltown (Campbelltown LGA) is situated 53 south west of Sydney and covers an area of 312 square kilometres. The LGA extends to Glenfield in the North, Menangle Park in the south, Scenic Hills in the west and the Georges River in the east. The 2014-2015 “State of the Environment Report” states that ‘Campbelltown City will be in a position to attract a range of new business, government, health, cultural, retail and recreational opportunities to support our growing population’.

The Local Government Area includes all or part of thirty-four suburbs / localities. These being Airds, Ambarvale, Blair Athol, Blairmount, Bow Bowing, Bradbury, Campbelltown, Claymore, Denham Court, Eagle Vale, Englorie Park, Eschol Park, Gilead, Glen Alpine, Glenfield, Ingleburn, Kearns, Kentlyn, Leumeah, Long Point, Macarthur Heights, Macquarie Fields, Macquarie Links, Menangle Park, Minto, Minto Heights, Raby, Rosemeadow, Ruse, St Andrews, St Helens Park, Varroville, Wedderburn, Woodbine. Adjoining LGA’s are Liverpool, Bankstown, Sutherland Shire, Wollongong, Wollondilly and Camden. The area is well serviced by public transport and is closely positioned to the M5 & M7 Motorways, the East Hills and Main South West railway lines. The area is also well serviced by local public transport.

The region comprises of more than 150,000 people across 34 suburbs, making Campbelltown one of the ten largest local government authorities in NSW. The Campbelltown City estimated resident population for 2015 was 158,941 people.

Source: Campbelltown City Council



1.0 GENERAL DESCRIPTION OF LOCAL GOVERNMENT AREA (Cont).

Campbelltown City is located in Sydney’s south-western suburbs, at a distance of between 30 and 55 kilometres from the Sydney CBD. Campbelltown LGA occupies 31,222 hectares of land area with a population density of 4.9 persons per hectare. Campbelltown was developed as a satellite city in response to the Sydney Regional Outline Plan of the 1960s and is part of the Macarthur Growth Sector (together with Camden and Wollondilly LGAs). The Campbelltown LGA is characterised by a variety of urban and rural land uses.

The dominant housing form is low density detached dwellings with groupings of medium density housing in suburbs and some limited apartments located in the Campbelltown CBD. Campbelltown LGA statistics from the 2011 Census of Population and Housing, show the following: Age

Almost 27% of residents are aged 0 to 17 years 34% are aged 25 to 49 years 9% are aged 65 or more (this figure will continue to increase as our community

matures) The average age of people living in Campbelltown City is 33 years There are currently 114,000 people in Campbelltown City who are over the age of

15 years, which is an increase of 5,000 people over the age of 15 years since 2006 Culture

More than 28% of the city’s population were born overseas 20% are from non-English speaking backgrounds The most common languages spoken after English are Arabic, Filipino, Tagolog,

Hindi and Samoan Campbelltown still has one of the largest populations (4,700) of people

identifying as Aboriginal and Torres Strait Islanders in NSW Work and place of work 52.4% of people who work in Campbelltown City also live in the area 65,000 people living in Campbelltown City are currently employed, of which

68% are working full time and 30% part time 7% of people living in Campbelltown City are currently unemployed The three most popular industries in Campbelltown City are manufacturing

(14%), health care and social assistance (11%) and retail trade (11%) The three most popular occupations held by those living in Campbelltown City

are clerical and administrative workers (18%), technicians and trades workers (15%) and professionals (14%)

8% of the population of Campbelltown City earned a high income (more than $1,500 per week) and 38% earned a low income (less than $400 per week)



1.0 GENERAL DESCRIPTION OF LOCAL GOVERNMENT AREA (Cont).

54% of those who work do you not work within the Campbelltown LGA, with only 33% of those living in the Campbelltown LGA also working in the area

Education

12% of people in Campbelltown City have obtained a bachelor or higher degree 20% of people in Campbelltown City have vocational qualifications 50% of people in Campbelltown City have no qualifications In Campbelltown City 41% of people aged over 15 years have completed Year 12

schooling (or equivalant) Compared to 55% of people aged over 15 years in Greater Western Sydney

Household

38% of couples living in Campbelltown City have children 19% of households in Campbelltown City contain only one person, with the most

dominant household size being 2 persons per household Transport

60% of people in Campbelltown City drive a car as a method of transport to work, with 6% being driven as a passenger to work

16% of people in Campbelltown City catch the train to work compared to 14% of people in the Greater Sydney Area.

Suburb population and density

The most populated suburb is Macquarie Fields with 13,300 usual residents The least populated suburb is Blairmount with 480 usual residents The most densely populated suburb is Blair Athol with 30 persons per hectare The largest geographical suburb is Ingleburn with 1,200 hectares The smallest geographical suburb is Blair Athol only covering 89 hectares

Source: Campbelltown Council



2.0 NUMBER OF VALUATIONS IN THE ZONE CATEGORIES

District 218 - Campbelltown LGA 2016

Register of Land Value Entry Totals at 14 Nov 16 (the totals below include the 14 November 2016 Supplementary Import)

Zone Category (all zones)

Residential 47534 91.98% Business 694 1.34% Industrial 866 1.68% Open Space 937 1.81% Special Uses 409 0.79% Environmental 1044 2.02% Rural 196 0.38%

Totals 51680 100.00%

Residential Category

Single Dwelling Sites 43614 91.75% Residential Density 3920 8.25%

Totals 47534 100.00%



2.0 NUMBER OF VALUATIONS IN THE ZONE CATEGORIES (cont.)




District 218 - Campbelltown LGA 2016 Register of LV Entries per Component at 14 Nov 16

Zone Component # Entries % Zone Component # Entries %

A DA 62 0.119% R2 DAL 554 1.061%

A EB 484 0.927% R2 DBE 84 0.161%

B BH 16 0.031% R2 EBG 1153 2.208%

B1 BBL 151 0.289% R2 EDL 434 0.831%

B2 BDL 58 0.111% R2 EDM 3744 7.169%

B3 BCC 3 0.006% R2 EEB 3068 5.874%

B3 BCL 89 0.170% R2 EHE 2476 4.741%

B4 BAL 156 0.299% R2 EMM 2828 5.415%

B4 BIN 78 0.149% R2 ENR 1946 3.726%

B5 BEM 143 0.274% R2 EPL 1564 2.995%

E1 PGC 17 0.033% R2 ERA 2197 4.207%

E3 PAL 71 0.136% R2 ERR 2449 4.689%

E3 PAM 305 0.584% R2 EUG 868 1.662%

E3 PDV 39 0.075% R2 HER 2723 5.214%

E3 PES 27 0.052% R2 LRP 700 1.340%

E3 PGL 64 0.123% R3 DAB 955 1.829%

E3 PGW 143 0.274% R3 DAC 424 0.812%

E3 PHM 4 0.008% R3 DAD 1242 2.378%

E4 PBE 103 0.197% R3 DAM 150 0.287%

E4 PCD 124 0.237% R3 EUB 679 1.300%

E4 PFS 147 0.281% R4 DAH 57 0.109%

IN1 WAL 107 0.205% R4 DAS 413 0.791%

IN1 WAM 143 0.274% R5 DBR 1 0.002%

IN1 WAS 311 0.595% RE1 NAB 402 0.770%

IN2 FAL 62 0.119% RE1 NAR 522 1.000%

IN2 FAM 104 0.199% RE2 NAP 13 0.025%

IN2 FAS 139 0.266% RU2 RCL 39 0.075%

R2 ADB 3025 5.792% RU2 RCM 3 0.006%

R2 AEC 3638 6.966% RU2 RCS 40 0.077%

R2 AGS 2083 3.988% RU2 RGG 9 0.017%

R2 AIR 1378 2.639% RU5 REL 15 0.029%

R2 ANS 2370 4.538% RU5 RES 90 0.172%

R2 AQG 1598 3.060% SP1 SAO 1 0.002%

R2 ARB 1679 3.215% SP2 SAH 55 0.105%

R2 CLA 1054 2.018% SP2 SAL 353 0.676%

Totals No. of Components 70 Totals No. of Valuations 52226 100.00%




District 218 - Campbelltown LGA 2016 Register of LV Totals per Category at 14 Nov 16

Zone Component Total LV 2015 % Zone Component Total LV 2015 %

A DA $79,463,000 0.374% R2 DAL $766,237,100 3.603%

A EB $187,582,000 0.882% R2 DBE $518,420,000 2.438%

B BH $6,072,000 0.029% R2 EBG $448,440,690 2.108%

B1 BBL $173,977,060 0.818% R2 EDL $173,465,100 0.816%

B2 BDL $128,842,100 0.606% R2 EDM $1,256,072,780 5.906%

B3 BCC $83,200,000 0.391% R2 EEB $1,066,589,840 5.015%

B3 BCL $147,855,600 0.70% R2 EHE $726,720,530 3.417%

B4 BAL $259,093,400 1.218% R2 EMM $872,888,270 4.104%

B4 BIN $89,343,500 0.420% R2 ENR $582,371,600 2.738%

B5 BEM $217,018,000 1.020% R2 EPL $479,956,010 2.257%

E1 PGC $3,905,000 0.018% R2 ERA $573,802,390 2.698%

E3 PAL $50,197,000 0.236% R2 ERR $716,866,600 3.371%

E3 PAM $230,774,000 1.085% R2 EUG $337,689,510 1.588%

E3 PDV $26,785,800 0.126% R2 HER $905,628,720 4.258%

E3 PES $119,498,000 0.562% R2 LRP $268,024,000 1.260%

E3 PGL $58,402,000 0.275% R3 DAB $356,126,300 1.674%

E3 PGW $98,867,000 0.465% R3 DAC $160,215,800 0.753%

E3 PHM $7,228,000 0.034% R3 DAD $442,666,700 2.081%

E4 PBE $76,526,000 0.360% R3 DAM $259,151,600 1.218%

E4 PCD $117,855,000 0.554% R3 EUB $287,942,000 1.354%

E4 PFS $92,291,700 0.434% R4 DAH $143,228,000 0.673%

IN1 WAL $567,230,000 2.667% R4 DAS $187,755,040 0.883%

IN1 WAM $206,911,000 0.973% R5 DBR $680,000 0.003%

IN1 WAS $215,437,300 1.013% RE1 NAB $199,907,850 0.940%

IN2 FAL $161,276,000 0.758% RE1 NAR $227,118,310 1.068%

IN2 FAM $68,251,000 0.321% RE2 NAP $32,910,000 0.155%

IN2 FAS $49,928,000 0.235% RU2 RCL $103,675,000 0.487%

R2 ADB $886,045,250 4.166% RU2 RCM $3,740,000 0.018%

R2 AEC $1,176,405,530 5.531% RU2 RCS $18,032,000 0.085%

R2 AGS $614,371,700 2.889% RU2 RGG $7,366,000 0.035%

R2 AIR $345,867,690 1.626% RU5 REL $50,975,000 0.240%

R2 ANS $757,278,430 3.561% RU5 RES $83,200,000 0.391%

R2 AQG $580,406,860 2.729% SP1 SAO $4,000,000 0.019%

R2 ARB $527,709,300 2.481% SP2 SAH $269,024,900 1.265%

R2 CLA $228,275,200 1.073% SP2 SAL $97,241,150 0.46%

Totals No. of Components 70

Totals No. of Valuations $21,268,298,210 100%



3.0 TOWN PLANNING & ZONING INSTRUMENTS.

Planning Instruments that currently identify land use within Campbelltown LGA are as follows:

Campbelltown Local Environmental Plan 2015 Campbelltown (Urban Area) Local Environmental Plan 2002 Campbelltown Local Environmental Plan – District 8 (Central Hills Lands) Interim Development Orders (IDOs) Campbelltown (Sustainable City) Development Control Plan 2015 Campbelltown Growth Centres DCP State Environmental Planning Policy (Sydney Region Growth Centres) 2006 State Environmental Planning Policy (State Significant Precincts) 2005

Local Environmental Plans (LEPs) are legal instruments that have been prepared by Council to guide future development. This is done by way of zoning and development controls, which determine how the land can be developed. Campbelltown have recently completed Campbelltown Local Environmental Plan 2015 (CLEP 2015). Some areas of Campbelltown are not covered by CLEP 2015 due to certain planning circumstances. Those area noted in the CLEP 2015 as either ‘deferred matters’, where the existing planning controls apply or areas which are subject to planning controls contained in specific State Environmental Planning Policies. Interim Development Orders are similar to LEPs as they contain zoning and development controls within Campbelltown LGA that are outside the existing urban area of the LGA. Development Control Plans (DCPs) provide more site specific guidelines for certain types of development or parts of Campbelltown LGA. DCPs have less statutory weight than LEPs in the planning process and are a more flexible means of identifying additional development controls and standards for development. The principal DCP within Campbelltown LGA is the Campbelltown (Sustainable City) Development Control Plan 2015 (SCDCP 2015). The SCDCP 2015 comprises three volumes and applies to the whole of Campbelltown LGA. State Environmental Planning Policies (SEPPs) are planning instruments created by the State Government to address planning issue of significance to the NSW Government. SEPPs are made by the Minister for Planning and Environment and generally are an instrument that is used to provide additional restrictions or relaxing of existing provisions. The SEPPs that contain zoning and development controls for area within Campbelltown LGA are: - State Environmental Planning Policy (Sydney Region Growth Centres) 2006 - State Environmental Planning Policy (State Significant Precincts) 2005



4.0 IDENTIFIED SIGNIFICANT CHANGES IN USE OR DEVELOPMENTS OF PROPERTY AND OTHER FACTORS WHICH MAY AFFECT VALUATIONS.

In recent years strategic planning for the Campbelltown Local Government area has included development on the centrally located Campbelltown / Macarthur precinct. The area has become a mixed development (residential/business) precinct. The expansion of the Macarthur Square Regional shopping centre has seen an increase in development by UrbanGrowth near the Macarthur train station and Campbelltown Hospital. Residential development is also underway near Western Sydney University with the Macarthur Heights project in place. The NSW Government have commenced the operation of the new South West Rail link. This involves a new train station at Leppington, which was complete at the end of 2014. A new transport interchange and upgraded Glenfield Station were complete in 2012. Narellan Road, which is a main arterial road in the area is currently being upgraded. This road services local commuters, the Western Sydney University Campbelltown Campus, provides a link to the M5 Motorway and links the Campbelltown region with the Camden and Penrith regions. Camden Valley Way is another main arterial road, which is being upgraded in anticipation of the increased traffic flow in the area. This road links the Hume Highway, M7 and M5 with the Campbelltown and Camden areas. It is hoped that the new release of new residential space will put downward pressure on housing prices in the area. The upgraded infrastructure will assist with congestion in the area, which is already present and has the potential to worsen with the new developments. Campbelltown LGA is situated within the South West Growth Centre. This growth centre is comprised of 18 precincts and covers area within Liverpool Council, Camden Council and Campbelltown Council. The Growth Centre initiative is an attempt by the NSW Government to promote growth and development which is sustainable and manageable. The South West Growth Centre and the North West Growth Centre are managed by the SEPP (Sydney Region Growth Centres) 2006. Local governments which are involved in these growth centres are required to adopt planning policies which support this SEPP. 4.1 Greater Macarthur Priority Growth Area

NSW Government Planning & Environment are working with Campbelltown City Council to support the region through urban renewal, land release and new infrastructure. The priority growth area will coordinate land use and infrastructure planning for:

Urban renewal around seven train station precincts from Glenfield to Macarthur. New land release areas of Menangle Park and Mount Gilead.



In 2015 Planning & Environment released draft for precincts around 7 rail stations from Glenfield to Macarthur. The government also released plans for new releases including Mount Gilead, Menangle Park and a new town in Wilton. The Priority Growth Area is 4.1 Greater Macarthur Priority Growth Area (cont.) expected to provide up to 33,000 new homes and 30,000 new local jobs within close proximity to homes.

Source: NSW Government Planning & Environment

4.2 South West Growth Centre The North West and South West Growth Centres were identified for Greenfield land release by the NSW Government in 2005, with first release Precincts formally released for planning in 2006. The Growth Centres will eventually provide around 181,000 dwellings and $7.5 billion in infrastructure for about half a million new residents within the North West and South West Growth Centres.



The South West Growth Centre is located within Liverpool, Camden and Campbelltown Local Government Areas. There are 17 precincts within the South West Growth Centre over 17,000 hectares. In the future it is expected to include an estimated 110,000 new homes. 4.2 South West Growth Centre (cont.)

Source: NSW Government Planning & Environment

4.3 Status of the South West Rail Link

The new South West Rail Link (SWRL) was opened to the public on 8 February 2015. The new Glenfield Transport Interchange and Glenfield Station were opened to the community on Sunday 23 September 2012. Major construction of the Glenfield to Leppington rail line component of the South West Rail Link commenced at the beginning of 2012 and works are 12 months ahead of schedule, with revenue services now commencing in 2015. The Glenfield Junction northern flyover was built as part of the South West Rail Link project. The flyover was commissioned in early June 2014 and is helping to deliver a more efficient rail network for customers. The flyover separates T2 South Line services from T2 Airport Line services, reducing flow-on effects to other trains across the Sydney rail network if a service is delayed. Previously trains from the two lines had to take turns



at Glenfield, slowing them down and creating a bottleneck whenever a train was delayed. The flyover now allows two trains to cross at the same time, one over the top of the other, meaning the network will flow much more effectively and predictably. Source: Transport for NSW

4.3 Status of the South West Rail Link (cont.)

Source: Transport Sydney 4.4 Campbelltown Residential Development Strategy

Residential land development and its future development pattern was reviewed in the Campbelltown Residential Development Strategy. The strategy identifies two types of urban/future urban development that has the potential to be developed within Campbelltown LGA and are infill development and greenfield development. Infill Development – refers to the development focused on increasing densities and underutilised sites within existing urban areas or urban consolidation of urban areas. The major urban centres identifies in the study and the respective indicative dwelling yields are summarised as follows:

Greenfield Development – Is development located on the urban fringe of Sydney and has previously been used for non-urban uses such as agriculture. The release of this land is related to housing affordability and the increase in supply of new vacant land lots considered critical in managing Sydney’s housing affordability crisis. The existing and potential ‘greenfields’ growth nodes and their respective notional yields include:



4.4 Campbelltown Residential Development Strategy

The other emerging form of residential settlement within Campbelltown LGA are Environmental Lands. This is land that has some type of environmental sensitivity but still can accommodate a dwelling subject to Council approval. These comprise of housing that flanks the established urban areas to the east, west and south. These areas include Wedderburn Plateau and Gilead to the south, the Scenic Hills in the west, and East Edge Scenic Protection Lands and Georges River Landscape in the east. 4.5 Campbelltown Employment Land

In regards to employment land Campbelltown LGA currently has 741 hectares of zoned employment lands, which is around 5% of Sydney’s total employment lands. Potential greenfield sites for more employment land in Campbelltown LGA are limited, however the Campbelltown Employment Land study aims to identify sites capable of being developed into employment lands. This land includes the Glenlee Coal Plant and the Gleenfield Waste Disposal Site. The study also investigates potential locations for a business park citing the successes of business parks such as Norwest and Macquarie Park, as examples that could be applied within Campbelltown LGA. The sites’ proposed for future business park use are UWS Campbelltown Campus, Bethlehem Monastery, Glenfield Agricultural School Site. Existing centres identified for more employment land growth include Campbelltown and Ingleburn. The study states that, ‘the Metropolitan Strategy Review’ shows that Campbelltown-Macarthur Centre grew by 37% between 2001 and 2006, after growth rate than any nominated regional City, indicating that there is scope and demand for increased employment lands such as business and industrial land uses.

4.6 Property Market Overview



Australia’s residential property market exhibited mixed levels of growth over the 2015/16 financial year. The CoreLogic RP Data Home Value Index illustrates the combined capital city index rose 6.1% over the 12 months ending 31 July 2016. According to the index, Sydney residential properties showed an increase of 9.1% over the 12 months ending 31 July 2016 with Melbourne being the closest capital city to Sydney in terms of growth recording 7.5% over the same period. It is evident that the Sydney and Melbourne property markets have continued to increase in value at a faster pace than other Australian capital cities over the 2015/16 financial year. Some pockets of Sydney and noticeably some components of the Campbelltown LGA had recorded stronger growth than others, however as a whole the Campbelltown LGA moved homogenously showing considerable growth. 4.6 Property Market Overview (cont.)

Source: CoreLogic There are now indications that the Sydney apartment market is beginning to slow with an oversupply now predicted in some areas of Sydney. Tighter lending criteria initiated by the Australian Prudential Regulation Authority (APRA) and then by the major banks may result in less apartments sales in the future along with a demographic that requires more detached housing rather than high density living. Additional restraints have been placed on foreign investors by the NSW Government placing a 4% stamp duty surcharge and extra 0.75% on land tax from 2017. The Foreign Investment Review Board (FIRB) has heightened the restrictions placed on foreign investors of residential property by introducing a fee to be paid by a foreign person for every purchase of a new dwelling. The fees that are payable for residential land applications depend on the price for the acquisition of the interest. Overall, retail property has benefited from an uplift in household income, driven by the increases in residential dwelling values, which help support discretionary spending and spending on consumer / household goods. Density / development sites continued to perform well over the 2015/16 financial year. Generally, residential development continues to outprice commercial development as the highest and best use and as such, sites with residential development potential remain in high demand across the Sydney



Metropolitan Area. Industrial property across the Campbelltown LGA showed moderate to strong growth over the 2015/16 financial year. 4.7 Economy Overview

The following statement was issued by the Reserve Bank of Australia for the monetary policy decision held 5 July 2016 and provides a concise summary on the outlook for national and global economies as at the 2016 base date:-

At its meeting today, the Board decided to leave the cash rate unchanged at 1.75 per cent.

The global economy is continuing to grow, at a lower than average pace. Several advanced economies have recorded improved conditions over the past year, but conditions have become more difficult for a number of emerging market economies. China's growth rate

4.7 Economy Overview (cont.)

moderated further in the first part of the year, though recent actions by Chinese policymakers are supporting the near-term outlook.

Commodity prices are above recent lows, but this follows very substantial declines over the past couple of years. Australia's terms of trade remain much lower than they had been in recent years.

In financial markets, conditions have generally been calmer for the past several months following the period of volatility early in the year. Attention is now turning to some particular event risks. Funding costs for high-quality borrowers remain very low and, globally, monetary policy remains remarkably accommodative.

In Australia, recent data suggest overall growth is continuing, despite a very large decline in business investment. Other areas of domestic demand, as well as exports, have been expanding at a pace at or above trend. Labour market indicators have been more mixed of late, but are consistent with continued expansion of employment in the near term.

Inflation has been quite low. Given very subdued growth in labour costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time.

Low interest rates have been supporting domestic demand and the lower exchange rate overall is helping the traded sector. Over the past year, growth in credit to businesses has picked up, even as that to households has moderated a little. These factors are all assisting the economy to make the necessary economic adjustments, though an appreciating exchange rate could complicate this.

Indications are that the effects of supervisory measures have strengthened lending standards in the housing market. Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments. Dwelling prices have begun to rise again recently. But considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities.

Taking account of the available information, and having eased monetary policy at its May meeting, the Board judged that holding the stance of policy unchanged at this



meeting would be consistent with sustainable growth in the economy and inflation returning to target over time.

4.8 Court Cases The High Court decision Maurici v Deputy Commissioner of Land Tax requires that the valuation be made free of any influence of scarcity. In effect, the valuer is required to have regard to the whole market and not just the vacant land sales. In order to fulfil this requirement Southern Alliance Valuation Services Pty Ltd had regard to all the sales evidence.



5.0 ADDED VALUE OF IMPROVEMENTS

Residential

In addition to vacant land sales, improved sales were used to assist in determining the market levels for land values and to negate any possibility of a scarcity factor. The Paired Sales Approach was used throughout the Campbelltown region whereby the land value demonstrated by vacant land sales is to be taken from the sale price of improved properties to determine the added value of the improvements. The table below details the results from this analysis for the Campbelltown valuation area. The schedule provided is general in nature and each analysed sale is assessed individually when determining the added value of improvements to capture specific features e.g. renovations, pools, landscaping, number of levels, topography etc.

Rates Per Square Metre ($/m2)

Adopted from Paired Analysis

Property Type

Size (m2)

Condition

Very Poor

Poor Averag

e Good

Very Good

Superior

Fibrous Cement,

Weatherboard, Permalum Clad, etc.

0-89 250- 425

425-725

450- 750

475- 775

500- 800

550- 850

90-115 250- 425

425-725

450- 750

475- 775

500- 800

550- 850

116-145

250- 425

425-725

450- 750

475- 775

500- 800

550- 850

Brick (before 1900)

Victorian Style

0-89 350- 800

800-1000

850-1100

900- 1200

950- 1300

1000- 1400

90-115 300- 700

700-900

750-1000

800- 1100

850- 1200

900- 1300

116-145

250- 600

600-800

650- 900

700- 1000

750- 1100

800- 1200

146-195

200- 500

500-700

550- 800

600- 900

650- 1000

700- 1100

196-350

200- 400

400-600

450- 700

500- 800

550- 900

600- 1000



5.0 ADDED VALUE OF IMPROVEMENTS (Cont).

Property Type

Size (m2)

Condition

Very Poor

Poor Averag

e Good

Very Good

Superior

Brick (1900 – 1920)

Federation Style

0-89 350- 800

800-1000

850-1100

900- 1200

950-1300

1000-1400

90-115 300- 700

700-900

750-1000

800- 1100

850-1200

900- 1300

116-145 250- 600

600-800

650- 900

700- 1000

750-1100

800- 1200

146-195 200- 500

500-700

550- 800

600- 900

650-1000

700- 1100

196-350 200- 400

400-600

450- 700

500- 800

550-900

600- 1000

Brick (1920 – 1950)

California Bungalow and

Art Deco

0-89 350- 800

800-1000

850-1100

900- 1200

950-1300

1000-1500

90-115 300- 700

700-900

750-1000

800- 1100

850-1200

900- 1400

116-145 250- 600

600-800

650- 900

700- 1000

750-1100

800- 1300

146-195 200- 500

500-700

550- 800

600- 900

650-1000

700- 1200

196-350 200- 400

400-600

450- 700

500- 800

550-900

600- 1000

Brick (1950 - 1970) Post WWII

Style

0-89 350- 900

900-1200

950-1300

1000-1400

1050-1500

1100-1600

90-115 300- 800

800-1100

850-1200

900- 1300

950-1400

1000-1500

116-145 250- 700

700-1000

750-1100

800- 1200

850-1300

900- 1400

146-195 200- 600

600-900

650-1000

700- 1100

750-1200

800- 1300

196-350 200- 500

500-800

550- 900

600- 1000

650-1100

700- 1200




Property Type

Size (m2)

Condition

Very Poor

Very Poor

Very Poor

Very Poor

Very Poor

Very Poor

Brick (1970 – 1990)

0-89 450-1000

1000-1400

1050-1500

1100-1600

1150-1700

1200-1800

90-115 400- 900

900-1300

950-1400

1000-1500

1050-1600

1100-1700

116-145 350- 800

800-1200

850-1300

900- 1400

950-1500

1000-1600

146-195 300- 700

700-1100

750-1200

800- 1300

850-1400

900- 1500

196-350 300- 600

600-1000

650-1100

700- 1200

750-1300

800- 1400

Brick (1990 – Present)

0-89 500-1500

1500-2200

1900-2400

2100-2600

2300-2800

2500-3000

90-115 450-1300

1300-2000

1700-2200

1900-2400

2100-2600

2300-2800

116-145 400-1100

1100-1800

1500-2000

1700-2200

1900-2400

2100-2600

146-195 350- 900

900-1600

1300-1800

1500-2000

1700-2200

1900-2400

196-350 300- 700

700-1400

100-1600

1300-1800

1500-2000

1600-2100

Project Home Presentation

(Modern)

0-89 500-1500

1500-2200

1900-2400

2100-2600

2300-2800

2500-3000

90-115 450-1300

1300-2000

1700-2200

1900-2400

2100-2600

2300-2800

116-145 400-1100

1100-1800

1500-2000

1700-2200

1900-2400

2100-2600

146-195 350- 900

900-1600

1300-1800

1500-2000

1700-2200

1900-2400

196-350 300- 700

700-1400

1100-1600

1300-1800

1500-2000

1700-2200




Property Type

Size (m2)

Condition

Very Poor

Very Poor

Very Poor

Very Poor

Very Poor

Very Poor

Architectural Design

(Modern)

0-89 1000-2000

2000-3400

3400-4100

3600-4400

3800-4700

4000-5000

90-115 850-1850

1850-3150

3150-3850

3350-4150

3550-4450

3750-4750

116-145 700-1700

1700-2900

2900-3600

3100-3900

3300-4200

3500-4500

146-195 550-1550

1550-2650

2650-3350

2850-3650

3050-3950

3250-4250

196-350 400-1400

1400-2400

2400-3100

2600-3400

2800-3700

3000-4000

Examples of Paired Analysis within the Campbelltown Area:

Vacant Site sale at 14 Austin Avenue, Campbelltown. Sold 16 February 2016 for $350,000. Area: 663.9m2.

Paired with:- 85 Stornoway Avenue, St Andrews. Sold 19 April 2016 for $560,000. Dimensions: 16.80 x 39.65. Area: 666.1m2. Good quality house. Single storey brick cottage with tile roof. The house comprises of 3 bedrooms, 1 bathroom and double carport. It features: - ducted air conditioning - renovated kitchen and bathroom, - entertaining area GBA: 170m2 (approx.). After allowing for size, location, date, topography etc. shows $235,000 (equates to $1,237/m2) for this type of improvement - Total: $325,000. Or paired with:- 14 Phillip Street, Campbelltown Sold 27 April 2016 for $485,000. Dimensions: 17.07 / 38.10 Area: 650.4 m2. Average quality house. Single storey cottage with tile roof. The house comprises of 3 bedrooms, 1 bathroom and single carport. It features: renovated kitchen - study



5.0 ADDED VALUE OF IMPROVEMENTS (Cont). - under house storage - large block with potential for granny flat GBA: 135m2 (approx.). After allowing for size, location, date, topography etc. shows $125,000 (equates to $926/m2) for this type of improvement and $125,000 for all other improvements - Total: $360,000. Or paired with:- 33 Turimetta Avenue, Leumeah. Sold 10 May 2016 for $456,000. Dimensions: 15.24 x 42.67. Area: 645m2. Poor quality house. Single storey weatherboard cottage with tile roof. The house comprises of 2 bedrooms, 1 bathroom and double lock up garage. Kitchen and bathroom are in original condition. Potential to rebuild or renovate existing dwelling. GBA: 110m2 (approx.). After allowing for size, location, date, topography etc. shows $101,000 (equates to $748/m2) for this type of improvement - Total: $335,000.

Vacant Site sale at 4 McClintock Drive, Minto. Sold 1 March 2016 for $391,000. Area: 406.9m2.

Paired with:- 18 Davy Place, Helens Park. Sold 27 January 2015 for $455,000 Area: 425.7m2. Good quality house. Single storey brick cottage with tile roof and single lock up garage. Property in good condition with modern kitchen and bathroom. House comprises of 3 bedrooms and 1 bathroom. GBA: 110m2 (approx.). After allowing for size, location, date, topography etc. shows $195,000 (equates to $1,625/m2) for this type of improvement - Total: $250,000. Or paired with:- 6 Topper Place, Englorie Park. Sold 19 April 2016 for $486,300 Area: 425.7m2. Average quality house. Single storey brick cottage with tile roof and single lock up garage. Property's bathroom and kitchen in an average condition. It comprises 3 bedrooms and 1 bathroom. GBA: 125m2 (approx.). After allowing for size, location, date, topography etc. shows $176,300 (equates to $1,410/m2) for this type of improvement - Total: $310,000.



5.0 ADDED VALUE OF IMPROVEMENTS (Cont). Or paired with:- 42 Phyllis Street, Minto. Sold 21 March 2016 for $532,000 Area: 562.8m2. Poor quality house. Single storey weatherboard cottage with tile roof. The house comprises of 3 bedrooms, 3 bathrooms and double lock up garage. Kitchen and bathroom are in original condition. Potential to rebuild or renovate existing dwelling. GBA: 120m2 (approx.). After allowing for size, location, date, topography etc. shows $122,000 (equates to $910/m2) for this type of improvement - Total: $410,000.

Vacant Site sale at 8 Coventry Crescent, Denham Court. Sold 27 October 2016 for $430,000. Area: 419.2m2.

Paired with:- 131 Harrow Road, Glenfield. Sold 27 April 2016 for $569,000 Area: 425.7m2. Good quality house. Single storey brick duplex with tile roof. Property comprises of 3 bedrooms, 2 bathrooms and 1 lock up garage. It features: - split system air conditioning - ensuite GBA: 135m2 (approx.). After allowing for size, location, date, topography etc. shows $244,000 (equates to $1,525/m2) for this type of improvement - Total: $325,000. Or paired with:- 15 Norman Dunlop Crescent, Minto. Sold 11 April 2016 for $560,000 Area: 420.0m2. Average quality house. Single storey brick cottage with tile roof and single lock up garage. Property comprises of 3 bedrooms and 1 bathroom. Features include: - timber flooring - open plan kitchen and dining area GBA: 135m2 (approx.). After allowing for size, location, date, topography etc. shows $215,000 (equates to $1,344/m2) for this type of improvement - Total: $345,000. Or paired with:- 40 Bradbury Avenue, Campbelltown. Sold 21 April 2016 for $520,000 Area: 645.0m2.



Poor quality house. Comprises of 3 bedrooms and 1 bathroom. Single storey weatherboard clad house with tile roof. Potential for granny flat or dual occupancy development. 5.0 ADDED VALUE OF IMPROVEMENTS (Cont). GBA: 86m2 (approx.). After allowing for size, location, date, topography etc. shows $80,000 (equates to $928/m2) for this type of improvement - Total: $440,000.

Vacant Site sale at 182 Eagleview Road, Minto. Sold 15 February 2016 for $370,000 Area: 390.0m2.

Paired with:- 12 Briggs Place, St Helens Park. Sold 22 May 2016 for $492,000 Area: 425.7m2. Good quality house. Single storey brick cottage with tile roof. Located in cul-de-sac street property includes 3 bedrooms, 1 bathroom and 1 lock up garage. - air conditioning - modern bathroom and kitchen - undercover entertaining area GBA: 135m2 (approx.). After allowing for size, location, date, topography etc. shows $197,000 (equates to $1,194/m2) for this type of improvement - Total: $295,000. Or paired with:- 27 Palmer Street, Ingleburn. Sold 21 March 2016 for $695,000 Area: 763.2m2. Average quality house. Single storey brick cottage with tile roof. The house comprises of 3 bedrooms and 1 bathroom. It features: - large bathroom - external laundry - second toilet - large pergola GBA: 135m2 (approx.). After allowing for size, location, date, topography etc. shows $200,000 (equates to $1,212/m2) for this type of improvement - Total: $495,000. Or paired with:- 47 Farnsworth Avenue, Campbelltown. Sold 19 March 2016 for $505,000 Area: 638.6m2. Poor quality house. Single storey fibro cottage with tile roof and carport. The property comprises of 4 bedrooms and 1 bathroom. It features: - air conditioning



- pergola - 2 carports GBA: 125m2 (approx.). After allowing for size, location, date, topography etc. shows $100,000 (equates to $748/m2) for this type of improvement - Total: $405,000.



5.0 ADDED VALUE OF IMPROVEMENTS (Cont). Commercial / Retail / Industrial

Due to the lack of sufficient vacant land sales in the Campbelltown area for the above zone categories, the Replacement Cost approach was applied when analysing sales evidence. The Replacement Cost approach is based upon the principle that the informed purchaser would pay no more than the cost to reproduce the sale property. Hence the methodology used on analysis is as follows:

Replacement Cost Methodology: Reasonable allowance for refurbishment costs added to the sale price to bring the

improvements to an as new replacement standard where the returns would be equivalent to as new.

An appropriate entrepreneurial profit and risk allowance. On average between 10% – 15% in the Campbelltown valuation area.

Allowance for interest on funds during the hypothetical construct to completion period. This is inclusive of holding charges and construction costs. Depending on borrowings between 7% - 9% was applied.

The adjusted sale price can now be analysed for land content by using industry accepted cost estimates for the as new building and development expenses. As a general summary, the cost new applied in the Campbelltown district were as follows: Single storey retail shop $900 to $1,000m2 gross building area Two storey retail shop with office above $1,000 to $1,200m2 gross building area Two storey retail shop with residential above $1,200 to $1,500m2 gross building area Industrial (depending on construction type) $650 to $800m2 gross building area The residual amount following this exercise will show the adjusted land value at the base date.

Other costs accounted for are: All professional fees Costs of site works in preparation for building Cost of stamp duty and legal charges on purchase of site Costs of rates and taxes over development period Loss of interest on capital outlaid on purchase of site Loss of interest on capital outlaid on construction (av. 50% of dev. period). Legal costs and commission on sale for development sites. Critical to the analysis is that the added value only is to be captured and taken from the Sale Price to show the Residual Land Value.218 -Campbelltown LGA BD 14 & 15 LV Totals at 12



6.0 CHANGES TO COMPONENTS ILLUSTRATED BY CHANGES TO THE EXISTING VALUE RELATIONSHIPS.

From the analysed sales evidence available at the commencement and during the programme, the amount of variation applied to the value of properties within each zone & component is as follows:

Value Levels - Typical Properties Typical Single Dwelling Site – 15 Condamine Street, Campbelltown

Dimensions : 13.82/14 x 46.63 m. Site Area : 645 m2 BD 0715 Land Value : $326,000 Factor Update : 1.328 BD 0716 Land Value : $433,000

Typical Single Dwelling Site – 34 Kalbarri Crescent, Bow Bowing

Dimensions : 17 Irregular / 15.54 x 30.84 / 31.06. Site Area : 500.2 m2 BD 0715 Land Value : $278,000 Factor Update : 1.259 BD 0716 Land Value : $350,000 Typical Single Dwelling Site – 112 Eucalyptus Drive, Macquarie Fields Dimensions : 16.71 Irregular / 16.3 x 30.11 / 31.5 m Site Area : 496.9 m2 BD 0715 Land Value : $227,000 Factor Update : 1.348 BD 0716 Land Value : $306,000 Typical Single Dwelling Site – 23 Corsair Street, Raby Dimensions : 17.37 / 20 x 30 / 30.57 m Site Area : 562 m2 BD 0615 Land Value : $251,000 Factor Update : 1.271 BD 0716 Land Value : $319,000

Typical Rural Dwelling Site – 4 Hillcrest Road, Wedderburn Dimensions : 114.4/ 114.5 x 173.7 / 174.1 m Site Area : 2.00 Hectares BD 0715 Land Value : $436,000 Factor Update : 1.406 BD 0716 Land Value : $613,000



6.0 CHANGES TO COMPONENTS ILLUSTRATED BY CHANGES TO THE EXISTING VALUE RELATIONSHIPS. (cont.) Typical Villa Home/Townhouse Site –Macquarie Fields Dimensions : 35.11/43.62 x 36.38/60.56 Irreg Site Area : 1505m2 (301m2) Development : 3 x villas, 2 x townhouses BD 0715 Land Value : $618,000 ($123,600 per site) Factor Update : 1.282 BD 0716 Land Value : $792,000 ($158,400 per site)

Typical Retail Property – 72 Queen Street, Campbelltown Dimensions : 29.79 / 28.8 x 31.45 / 39.62 m Site Area : 1,053 m2 BD 0715 Land Value : $1,150,000 Rate per metre frontage: $38,604 ($1,092 m2) Factor Update : 1.122 BD 0716 Land Value : $1,290,000 Rate per metre frontage: $43,403 ($1,225 m2)

Typical Industrial Property – 22 Memorial Avenue, Ingleburn Site Area : 1,012 m2 BD 0715 Land Value : $303,000 Rate per square metre : $299 Factor Update : 1.502 BD 0716 Land Value : $455,000 Rate per square metre : $450



6.0 CHANGES TO COMPONENTS ILLUSTRATED BY CHANGES TO THE EXISTING VALUE RELATIONSHIPS (cont.)

District 218 - Campbelltown LGA 2016

Base Date Land Value Totals at 15 Nov 16

Zone & / or

Property Category

Total of 2015

LG LV's as at 15 Nov 16

Total of 2015

Prior LV's as at 15 Nov 16

Total of 2016

New LV's as at 15 Nov 16

2015 LG to 2016 Variation

2015 Prior LV to 2016

Variation

% of Cat. to Total

District Value 2015

% of Cat. to

Total District Value 2016

(the totals below include the 14 Nov 16 Supplementary Import)

Residential $13,442,310,890 $13,442,364,890 $16,914,343,540 1.258 1.258 78.57% 78.57%

Business $928,460,550 $928,460,550 $1,105,401,660 1.191 1.191 5.43% 5.43%

Industrial $1,062,671,900 $1,063,887,900 $1,269,033,300 1.194 1.193 6.21% 6.22%

Open Space $506,753,760 $506,753,760 $459,936,160 0.908 0.908 2.96% 2.96%

Special Uses $304,632,496 $304,632,496 $370,266,050 1.215 1.215 1.78% 1.78%

Environmental $642,926,770 $642,926,770 $882,329,500 1.372 1.372 3.76% 3.76%

Rural $220,303,150 $220,303,150 $266,988,000 1.212 1.212 1.29% 1.29%

District Land Value Total

$17,108,059,516 $17,109,329,516 $21,268,298,210 1.243 1.243 100.00% 100.00%



6.0 CHANGES TO COMPONENTS ILLUSTRATED BY CHANGES TO THE EXISTING VALUE RELATIONSHIPS (cont.)



7.0 MARKET COMMENTARY

Residential The residential values achieved in 2016 within the Campbelltown Local Government Area represented an overall increase on the previous year. Depending on the locality residential land values predominantly moved within a band of + 10% to +33% between the Base Date 1 July 2015 and 1 July 2016. The new residential developments at Campbelltown, Minto, Glenfield and Denham Court experienced a positive increase in values due to sustained demand for new homes. Prices for englobo sites has increased considerably as the demand for single detached housing continued. This is due to first home owners’ preference for single detached housing resulting in an increase in sales of individual lots, placing upward price pressure on large broad hectare sites. Housing affordability is also a key driver of demand as many of the homes located closer to the CBD are beyond the typical first home owner’s budget. Resulting in a flight to city fringe area such as Campbelltown where land is much cheaper. The market for medium density development sales demonstrated a higher than expected increase in both sales volumes and value levels. This increase in occurring across many of the Campbelltown’s suburbs as developers and investors alike are taking advantage of the new CLEP 2015 and the zoning incentives provided in this document. Furthermore, increased urban consolidation is a requirement of both Local and State Government, whereby improved efficiencies from existing infrastructure are achieved through increasing densities around existing infrastructure services such as train stations, bus routes, retail shops, water, electricity, telecommunications and sewer. Results from the Department of Housing Sales Tables (March 16 Quarter – All Dwellings) indicate the following:

Location Median Value Change in Median

(Qtly)Change in Median

(Annual)Campbelltown

(2560) $521,000 -1.7% 8.5%

Sydney $680,000 -5.6% 5.4%

Please note a variety of factors can contribute to anomalies in the sale price and the end statistical data. The above information is viewed as a reference only for reporting purposes. Rural The rural values achieved in 2016 within the Campbelltown Local Government Area represented a strong performing market. This market movement was in line with surrounding areas in the south west of Sydney. Depending on the locality land values predominantly moved within a band of 18 % to 24% between the Base Date 1 July 20015 and 1 July 2016. These lands are predominantly used as rural home sites and have moved upwards in a similar manner to the residential lands.



7.0 MARKET COMMENTARY (Cont.) Commercial / Retail The commercial and retail property markets within the Campbelltown Local Government Area for the reporting year to 1 July 2016 indicates that the movement in the market was not uniform across all suburbs and areas. The demand for retail space has continued to witness a steady growth in particularly along Queen St, Campbelltown and Ingleburn Shopping Centre as a whole. The demand for commercial and mixed-use development sites has shown strong gains, particularly at the fringes of Campbelltown Town Centre along Warby, Chamberlain and Tyler Streets and Ingleburn Town Centre along Carlisle, Cambridge and Nardoo Streets where residential potential is the main driver of developer demand. Campbelltown commercial office vacancy rates have remained relatively low, however this trend could shift to higher vacancy rates as the volume of office space increases, however this seems unlikely as the demand for large commercial sites is being absorbed by the Mixed Use development market. Industrial The industrial property market within the Campbelltown LGA has improved markedly on previous years showing positive growth from 1 July 2015 to 1 July 2016. Many of the remaining industrial properties in the Campbelltown LGA have high underlying values which can be attributed to several reasons including scarcity of stock, being well located, having good access to main road networks and high alternative use values. It appears the industrial property market is gradually expanding with the release of newer estates in Ingleburn and Minto, however the increased stock is not having a negative effect on values as witnessed by the steady increase over the reporting year. Demand for smaller sites is quite strong to accommodate small businesses. Good access to the M5 & M7 Motorways contributes considerably to this.



7.0 MARKET COMMENTARY (cont.) Market Movement – Adjustment of Land Value to Base Date - Sales & Resale’s within Campbelltown LGA 2015 – 2016 The preferred and primary approach for time adjustment in the Campbelltown LGA is to use evidence of sales and re-sales or sales of like properties at different dates. Evidence collated to date is as follows: * Excludes resales which have been redeveloped and non-market sales 52 Brenda Street, Ingleburn Sold 20/02/2016 $540,000 Resold 12/07/2016 $600,000 Shows 11.1% increase

6 Moselle Place, Eschol Park Sold 16/02/016 $400,000 Resold 02/08/2016 $540,000 Shows 35.0% increase 12 Ronald Street, Campbelltown Sold 10/03/2016 $495,000 Resold 09/09/2016 $625,000 Shows 26.3% increase 45 Strathwallen Close, Macquarie Links Sold 09/01/2016 $645,000 Resold 09/09/2016 $660,000 Shows 2.3% increase 31 Whitechapel Close, Ambarvale Sold 31/05/2016 $290,000 Resold 10/09/2016 $300,000 Shows 3.5% increase 19 Elkhorn Street, Denham Court Sold 16/05/2016 $449,000 Resold 19/07/2016 $464,000 Shows 3.3% increase 27 Stonecorp Street, Denham Court Sold 24/06/2016 $379,000 Resold 30/08/2016 $400,000 Shows 5.5% increase

2 Dogwood Crescent, Denham Court Sold 16/05/2016 $485,000 Resold 19/07/2016 $500,000 Shows 3.1% increase 5 Heathfield Avenue, Airds Sold 15/02/2016 $330,000 Resold 03/06/2016 $341,500 Shows 3.5% increase 28B Riverside Drive, Airds Sold 12/02/2016 $335,000 Resold 14/08/2016 $347,000 Shows 3.6% increase 64 Albert Street, Ingleburn Sold 09/11/2016 $490,000 Resold 16/06/2016 $535,000 Shows 9.2% increase



7.0 MARKET COMMENTARY (cont.) 34 Carrington Circuit, Leumeah Sold 09/09/2015 $440,000 Resold 17/06/2016 $500,000 Shows 13.6% increase 6 Coucal Place, Ingleburn Sold 19/11/2015 $520,000 Resold 25/06/2016 $675,000 Shows 29.8% increase 3 Dickens Road, Ambarvale Sold 16/10/2016 $470,000 Resold 09/03/2016 $488,500 Shows 3.9% increase 2 Jacaranda Avenue, Bradbury Sold 24/12/2015 $490,000 Resold 29/08/2016 $552,000 Shows 12.7% increase 12 Plowman Road, Minto Sold 09/12/2015 $470,000 Resold 12/09/2016 $550,000 Shows 17.0% increase 46 Stornoway Avenue, St Andrews Sold 03/12/2016 $568,000 Resold 10/08/2016 $600,000 Shows 5.6% increase 4 Warrina Road, Bradbury Sold 07/09/2016 $420,000 Resold 09/02/2016 $513,000 Shows 22.1% increase 9 Wheatley Drive, Airds Sold 30/10/2015 $205,000 Resold 30/08/2016 $330,000 Shows 60.9% increase 1 Jacka Street, Airds Sold 24/09/2015 $290,000 Resold 13/10/2016 $335,000 Shows 15.5% increase 43 Cartwright Crescent, Airds Sold 18/09/2015 $295,000 Resold 10/04/2016 $325,000 Shows 10.2% increase 3 Dogwood Crescent, Denham Court Sold 09/10/2015 $299,000 Resold 03/08/2016 $385,000 Shows 28.8% increase 5 Dogwood Crescent, Denham Court Sold 09/10/2015 $299,000 Resold 03/08/2016 $385,000 Shows 28.8% increase



7.0 MARKET COMMENTARY (cont.) 18 Stonecorp Street, Denham Court Sold 17/09/2015 $373,000 Resold 31/08/2016 $400,000 Shows 7.2% increase 11 Sawsedge Avenue, Denham Court Sold 09/11/2015 $312,000 Resold 19/07/2016 $359,000 Shows 15.1% increase 5 Stonecorp Street, Denham Court Sold 11/09/2015 $379,000 Resold 18/09/2016 $407,500 Shows 7.5% increase 7 Glycine Street, Denham Court Sold 29/09/2015 $379,000 Resold 25/07/2016 $405,000 Shows 6.9% increase 11 Matrush Street, Denham Court Sold 09/11/2015 $329,000 Resold 19/07/2016 $370,000 Shows 12.5% increase 5 Matrush Street, Denham Court Sold 17/11/2015 $329,000 Resold 16/08/2016 $371,000 Shows 12.8% increase



8.0 MANAGEMENT OF COMPONENTS, VERIFICATION & HANDCRAFTING

Components With the introduction of the new standard LEP template within Campbelltown Council three letter components codes have replaced the two letter codes previously applied. These component codes have a description to classify land uses that are homogenous. There are seventy (70) components in total over each zone which allows each property to be componentised so that properties can be sorted into sections allowing statistical analysis and mass valuation. Verification

The components that have been verified within the Campbelltown Local Government Area during 2016 include (but are not limited to) the following:

CAMPBELLTOWN VERIFICATION ‐ BD'S 2015‐2017

Zone Entries Risk 2 YRS Require Verified Verified Verified To Not

Rating Required Overall Verify Verified

B 16 2 16 100% 16 100% 100% 0 0

B1 151 2 151 100% 151 100% 100% 0 0

B2 58 2 58 100% 58 100% 100% 0 0

B3 92 2 92 100% 92 100% 100% 0 0

B4 234 2 234 100% 234 100% 100% 0 0

B5 143 2 143 100% 143 100% 100% 0 0

E1 17 3 6.8 40% 17 250% 100% 0 0

E3 653 3 261.2 40% 296 113% 45% 0 357

E4 374 3 149.6 40% 182 122% 49% 0 192

IN1 561 2 561 100% 562 100% 100% 0 ‐1

IN2 305 2 305 100% 305 100% 100% 0 0

A 546 3 218.4 40% 495 227% 91% 0 51

R2 43619 3 17447.6 40% 19538 112% 45% 0 24081

R3 3450 3 1380 40% 543 39% 16% 837 2907

R4 470 3 188 40% 51 27% 11% 137 419

R5 1 3 0.4 40% 1 250% 100% 0 0

RE1 936 3 374.4 40% 95 25% 10% 279.4 841

RE2 13 3 13 100% 13 100% 100% 0 0

RU1 3

RU2 91 3 13 14% 91 700% 100% 0 0

RU5 105 3 42 40% 105 250% 100% 0 0

SP1 1 3 6 600% 1 17% 100% 5 0

SP2 408 3 163.2 40% 68 42% 17% 95.2 340

Total 52244 21823.6 42% 23057 106% 44% 0 29187



9.0 QUALITY ASSURANCE

In accordance with Southern Alliance Valuation Services own internal QA manual and the Office of the Valuer General guidelines, the following quality checks have been made in the delivery of services: • Ensuring all properties have been valued. • Ensuring the valuations are within the set parameters. • That a zone/component code integrity check has been made. • An in depth value check on those properties that have considerably higher values in relation to the average for land. • Ensure that current and proposed Development Control Plans and planning changes that affect the valuations have been taken into account. • Where the land value of a property has been amended on objection, the alignment of values with nearby properties has been checked. That all Statutory concession valuations and allowances have been supplied, including: Allowances for development on and off the land. Heritage Values. Land Rating Factors. Apportionment of Values. Mixed Development Apportionment Factors. The following statistical checks have been carried out on Campbelltown LGA for base date 2016. Coefficient of Dispersion (COD) This measures the relative consistency and, when viewed with the other measures, the relative accuracy of values in relation to the sales. It shows the amount of variation or the consistency of the values and also the relative accuracy of the values as the relationship between values and sales widens. The accepted measure for the COD is 0 – 15. Mean Value to Price Ratio (MVP) This calculates the mean relative accuracy, or level of values, relative to the sales. It shows the mean level of accuracy of the values assigned compared to the sales evidence. The MVP is to be calculated only in single dwelling residential categories, including rural home site areas. The accepted measure for the MVP is 85-100%.



9.0 QUALITY ASSURANCE (Cont.) Price Related Differential (PRD) This test measures the progressive value to sale relativity across the range of values in the sample. It demonstrates the variations of relativity between the sales and the assigned values and indicates if there is a progressive change in relativity across the value range. The accepted measure for the PRD is 0.98 – 1.03. Valuation Analysis Report (VAR) A Valuation Analysis Report was provided to LPI on the 15th of October 2015, along with the Final Values Load & Market Data File for Campbelltown LGA. This report provided all statistical analysis (as outlined above) for Base Date 1/7/2016, along with any explanations of anomalies. Also included in the VAR was the Quality Statement for Campbelltown LGA. The VAR should be read in conjunction with this Final Report.



10.0 PURPOSE OF THIS REPORT The purpose of this report is to describe the process and considerations for the 1 July 2016 revaluation of Campbelltown Local Government Area. 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, which 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 inquiries 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 Department of Lands website at www.lands.nsw.gov.au

Christopher Stening AAPI Steven Halias AAPI Certified Practising Valuer Certified Practising Valuer

218 final report 2016 campbelltown - valuergeneral.nsw.gov.au · independent property valuers &...

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