ATTACHMENTS FOR REPORTS ORDINARY COUNCIL …...Valuation Methodology • Land Value - defined in...
Transcript of ATTACHMENTS FOR REPORTS ORDINARY COUNCIL …...Valuation Methodology • Land Value - defined in...
137-139 Oberon Street PO Box 84 Oberon NSW 2787 Telephone: (02) 6329 8100 Fax: (02) 6329 8142 Email: [email protected] Email: [email protected]
ATTACHMENTS FOR REPORTS
ORDINARY COUNCIL MEETING
Tuesday 19 April 2016
5.30pm Oberon Council Chambers
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ATTACHMENTS FOR REPORT
Report Item
14.12 LAND AND PROPERTY INFORMATION
UPDATE
ATTACHMENT A – LPI Presentation
ATTACHMENT B – Land value fact sheet, Review Guide, Valuer General’s
latest newsletter and Media Release
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Introduction
• Tom Parameter - District Valuer with Land and Property
Information in the Orange office, a division of the Department of
Finance & Services.
• Chris Attenborough – Aspect Property Consultants - Contract
Services Manager
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Purpose of Meeting
• To provide an overview of the land valuation system and to explain
how land values are determined.
• To provide a general overview of land values for the Oberon Local
Government Area as at the Base Date of 1st July 2015
• Questions
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Information Pack
• Your Land Value Fact Sheet
• Your Review Guide
• The Valuer General’s latest Newsletter dated January 2016
• The Media Release for the Land Values issued for Blayney and
Oberon, dated 7 January 2016
• Copy of Presentation including thematic maps
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Rating and Taxing Land Valuation Structure
• Information Sheet 1
• Valuer General - independent statutory officer appointed
by the Governor of New South Wales to oversee the
State's valuation system.
• Land and Property Information - manage the valuation
system on behalf of the Valuer General
• Valuation Contractors - contracted by LPI to provide
land valuations in a number of local government areas of
New South Wales
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Valuation Methodology
• Land Value - defined in Section 6A of the Valuation of Land Act.
• Value of the land only.
• Does not include the value of the dwelling or other structures and
improvements on the land.
• Land is to be valued on its 'highest and best permitted use‘
• The valuation is the full fee simple in possession
• A sale of the land is assumed
• Valued at 1 July in valuing year
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Valuation Methodology • Property sales are the most important
factor considered when determining
land values
• Mass Valuation
• Similar properties are grouped in
components
• Representative properties
(Benchmarks) are selected within
components
• Sales are analysed and benchmarks
valued by direct comparison to the
sales
• Change in Benchmark values are
then applied to the whole component
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Sales Evidence • Analysis of the real estate market for the Oberon 2015 land valuation
program has been comprehensive:
• 36 residential sales analysed
• 6 commercial sales analysed
• 8 industrial sales analysed
• 66 rural sales analysed.
• Analysis of the market is undertaken every year for land tax purposes.
Therefore the total number of sales analysed since the previous
valuation program in 2012 are:
• 125 residential sales analysed
• 15 commercial sales analysed
• 22 industrial sales analysed
• 200 rural sales analysed
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Verification
• Verification is the process where valuations are systematically
checked to ensure they are correctly valued
• Verification is undertaken based on risk;
• Annually reviewed – benchmarks, successful objections, shopping
centres, mines, englobo, high value and high risk properties
• Verified every 3 years with 1/3 every year - commercial land,
industrial land, rural land, heritage restricted properties and land subject
to allowances.
• Verified every 6 years with 1/6 every year – open space, special use
zoned land and residential lands.
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Verification
• 2,442 land values (65.82% of all properties) were
individually reviewed during the 2015 land valuation
program
• Properties verified from 2014 to 2015:
• This compares to the 2015 Notices of valuation that were
last month issued to landholders in the Oberon LGA.
Total Valuations Verified % of Total Valuations
3,710 2,442 65.82%
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Quality Assurance
• LPI undertakes an annual audit program to ensure the quality of land values
• Statistical and parameter checks are undertaken on the annual delivery of
land values
• Formal Audits are undertaken as part of a structured program where specific
valuation processes are reviewed state-wide for all contractors
• Recommendations are made to assist improvement in Contractor’s valuation
processes
• Issues are identified requiring Contractors to amend land values and/or
valuation processes
• Monthly meetings are also held between the Contractors and the District
Valuers with discussion of contract specific risk registers.
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Objections
• Land owners & councils can object to issued land values
• Must be within 60 days of receipt of Notice of Valuation.
– Oberon LGA Notices – 7 January 2016.
– Last Date to Object – 7 March 2016.
• Objections are undertaken by a 3rd party contractor, not
involved in the original valuation process.
• A report is issued to the land owner.
• In some cases LPI will undertake the objection in-house.
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Oberon LGA Objection Statistics
Base Date Total
Objections Allowed Disallowed
% of Total Valuations
01 July 2012 10 5 0 0.003%
01 July 2013 0 0 0 0%
01 July 2014 0 0 0 0%
01 July 2015 2 N/A N/A 0.0005%
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Market Commentary
Oberon LGA Statistics
• Number of valuations 3,710 • Total Land Value 1/7/2015 $836,777,761
• Total Land Value 1/7/2012 $788,017,806
• Average increase over 3 years 6.19%
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Number of Valuations
Oberon LGA comprises 3,710 valuations.
A break-up of the properties based on zoning is as follows:-
ZONE NUMBER OF PROPERTIES
Commercial (B2, B6) 85
Environmental (E1) 14
Industrial (IN1, IN2) 87
Residential (R1, R5) 1,374
Rural (RU1, RU3) 2,001
Village (RU5) 123
Other (RE2, RU6, SP3) 25
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Market Commentary • The total land value of the Oberon local government area was approximately
$836,777,761 as at 1 July 2015. This is an overall increase of 6.19% from
the total land value of approximately $788,017,806 determined in 2012.
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
Business Residential Industrial Rural Village
Oberon LGA Average Value Change (%) from 2012 to 2015
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Market Commentary Residential
• Overall, land values has seen significant market increases since the last
General Valuation in 2012, with increases of approximately 20% for the town
of Oberon.
• Large lot residential properties surrounding Oberon have received almost a
10% increase in values for the period.
• Lower value villages like Black Springs, Burraga and Mount David have
remained generally stable over the period.
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Market Commentary
Commercial
• The Oberon commercial market remains thinly traded and the sales
indicate a generally stable market.
• The commercial market and vacancy rates in Oberon have remained
stable with limited supply and demand rates for the town.
• There was one sale in the B6 Enterprise Corridor zone which indicated a
reduction in values of approximately in the small (only 2 properties)
component.
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Market Commentary
Industrial
• The Oberon industrial market has been generally stable since the prior
General Valuation in 2012.
• There is low supply and demand levels for properties in the industrial
market within Oberon.
• Sales volumes have remained consistent over the period with values
showing a slight decrease of approximately 5% over the period.
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Market Commentary
Rural
• Overall rural land values have increased slightly in the Oberon LGA since the
prior General Valuation.
• Larger properties in the Central to Northern areas of Oberon have seen greater
increase from 6% to 20% as a result of their underlying soil types and location.
• Smaller rural holdings in the North have seen an almost 10% increase due to
their location and close proximity to Bathurst.
• Properties in the South of the LGA have generally seen a decrease over the
same period.
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Disclaimer The land values provided in this report 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 have 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.
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Land and Property Information
Website – www.lpi.nsw.gov.au
Toll free phone – 1800 110 038
QUESTIONS
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