Snowy Monaro Local Government Area · Jindabyne Jindabyne is the major town on the western portion...

Rating and Taxing Contractor: QV

Snowy Monaro

Local Government Area Final Report 2017

26t h October

QV SNOWY MONARO LGA FINAL REPORT of 16

1 Executive summary

General Overview

Overall there has been a moderate increase in land values in the Snowy Monaro Regional local government area from 2016 to 2017. The increase has been driven by a strong increase in the rural sector due to continued strong returns for livestock. The moderate increase in land values was not consistent across all market segments, with residential, commercial and industrial land values across the local government area having a slight increase between 2016 and 2017. Residential Overview

Overall residential land values have had a slight increase over the past 12 months. Residential land values in Bombala and Cooma have remained steady with limited sales activity. Jindabyne has seen a moderate increase in land values due to a lack of supply to meet an increase in demand following the announcement of the expansion of the Snowy Hydro Scheme. Large lot residential land values on the periphery of the towns of Bombala and Cooma had a strong increase due to limited supply and firm demand for a rural environment close to town services and schools. Large lot residential land values in close proximity to Jindabyne township have also seen a moderate increase in land values in line with residential land values. Land values in the smaller villages have remained steady due to limited demand. Exceptions include Old Adaminaby and Anglers Reach which have seen a strong increase due to firm demand from buyers looking for holiday accommodation. Commercial Overview

Commercial land values in the centres of Bombala and Cooma have remained steady however there continues to be changes in tenancies in Cooma. Jindabyne has seen a moderate increase in commercial land values in line with the movement of residential land values. Industrial Overview

Industrial property is centred on the Polo Flat estate in Cooma and smaller Leesville estate in Jindabyne. There has been limited market activity between 2016 and 2017 with a slight increase overall in line with the respective market movement in the towns. Rural Overview

There have been strong increases to land values for rural properties between 2016 and 2017. This is due to firm demand for better quality grazing land and lifestyle and bush

retreat properties.


The market for grazing properties has been driven by favourable conditions for primary producers, continued demand from buyers flowing from the Canberra market and low

interest rates.

Land values for hobby farm and lifestyle properties in close proximity to the township of Bombala had a strong increase due to limited supply. Land values for hobby farms and lifestyle properties in close proximity to Jindabyne and Cooma townships have had a

moderate increase.

Valuation changes in the municipality and percentage changes between the Council Valuation year of 1 July 2016, and 1 July 2017 are as follows:

ZONE No of

Properties

2017 LV 2016 LV %

Change

Prior Local

Government LV

2016

%

Change

Residential 7433 792,907,861 756,488,201 +4.81 756,488,201 +4.81

Rural 4494 1,126,778,405 1,008,254,625 +11.76 1,008,254,625 +11.76

Commercial 512 88,726,320 86,267,710 +2.85 86,267,710 +2.85

Industrial 169 19,725,100 18,858,800 +4.59 18,858,800 +4.59

Infrastructure 82 71,341,330 66,555,050 +7.19 66,555,050 +7.19

Environment 945 323,188,730 305,624,640 +5.75 305,624,640 +5.75

Public Rec. 120 11,409,510 10,918,520 +4.49 10,918,520 +4.49

TOTAL 13,755 2,434,077,256 2,252,967,546 +8.04 2,252,967,546 +8.04

.


Table of Contents

1 Executive summary _________________________________________________________________________________ 2

2 Disclaimer ___________________________________________________________________________________________ 5

3 Municipality Overview ______________________________________________________________________________ 6

3.1 Location of the district _______________________________________________________________________ 6

3.2 Principal towns _______________________________________________________________________________ 6

3.3 Main industries ______________________________________________________________________________ 9

3.4 Significant retail centres _____________________________________________________________________ 9

3.5 Type of residential development ____________________________________________________________ 9

4 State and local government legislation for LGA ___________________________________________________ 11

5 Market overview and sales of particular interest __________________________________________________ 13

5.1 Residential and Peripheral Lifestyle ________________________________________________________ 13

5.2 Villages ______________________________________________________________________________________ 13

5.3 Commercial _________________________________________________________________________________ 13

5.4 Industrial ____________________________________________________________________________________ 14

5.5 Rural Locations within the LGA _____________________________________________________________ 14

6 Significant Issues and Developments______________________________________________________________ 15

6.1 Significant Developments – From Prior to Current Annual Valuation ______________________ 15

6.2 Significant value changes – from prior to current annual valuation _______________________ 15

7 Overview of the quality assurance process ________________________________________________________ 16


2 Disclaimer

This report has been prepared on behalf of the Valuer General. The purpose of this report is to provide an overview of the valuation program for the 1 July 2017 valuation in the Snowy Monaro Regional Council 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 7.1.1”. 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.


3 Municipality Overview

3.1 Location of the district

Snowy Monaro Regional Council is located on the higher slopes of the eastern side of the Great Dividing Range between the Australian Capital Territory to the north and the state boundary with Victoria to the south. It is largely bounded by Kosciusko and Namadgi National Parks to the west and the Great Dividing Range coastal escarpment to the east. Cooma and Jindabyne are the largest town centres in the municipality. The northern boundary of the municipality is located 45 km south of Canberra CBD and 330 km south-west of Sydney. The municipality is largely rural grazing in nature, comprising a number of townships with peripheral rural-residential blocks, mixed lifestyle and retreat bushland and large broad-acre grazing. A significant influence in the municipality is Kosciuszko National Park and the ski and tourist industries.

Snowy Monaro Regional Council

3.2 Principal towns

The main towns in the local government area comprise Cooma, Jindabyne and Bombala with the smaller townships of Berridale, Nimmitabel and Bredbo and villages of Cathcart, Delegate, Bibbenluke, Dalgety, Adaminaby, Anglers Reach, Numeralla and Michelago.


Bombala

Bombala is the major town in the southern portion of the municipality. The town comprises two banks, two hotels, modern hospital, nursing home, commercial club, primary and

secondary schools, motor workshops, retail and service premises.

Cooma

Cooma is a main centre of activity, with a population of 6,664. It is located 115 kilometres south of Canberra and 63 kilometres east of Jindabyne. Cooma’s location makes it a popular base and rest stop for travelers en-route to the nearby ski-fields and recreational areas of the Snowy Mountains and lakes. The town comprises hotels, hospital, commercial clubs, primary and secondary schools, retail and service premises.

In 1949 the town became the headquarters of The Snowy Mountains Scheme, a large hydro-electric scheme that was completed in 1974, taking water from the eastern slopes of the Australian Alps for use in hydro-electric power generation and irrigation in the Murrumbidgee and Murray valleys.

Jindabyne

Jindabyne is the major town on the western portion of the municipality, on the shores of Lake Jindabyne, located 180 kilometres south-west of Canberra. The town comprises hotels, modern medical clinic, commercial clubs, primary and secondary schools, retail and service premises. During the winter and summer tourist seasons the population swells considerably.

Berridale

Berridale is a small township between Jindabyne and Cooma with a population of 1,727. There are various tourist accommodation premises, a hotel, primary school and a small retail centre. The town provides generally cheaper housing than either Jindabyne or Cooma.

Adaminaby

Adaminaby is a small township on the northern edge of the municipality, 52 km north-west of Cooma. The town has a small population of 234 and caters for the surrounding farming community and a significant tourist market based largely on Lake Eucumbene for boating and fishing. There is a primary school, hotel, commercial club and various retail premises.

Dalgety

Dalgety is a village located on the Snowy River, 33 km south-west of Jindabyne; a small permanent population of 75. There is a primary school, hotel and café.

Lake Eucumbene villages of Old Adaminaby & Anglers Reach

These are 2 villages located on the shores of Lake Eucumbene with only a small number of

permanent residents with the majority of homes used as holiday homes and holiday rentals.


Kosciuszko National Park

Kosciuszko National Park, including the NSW ski fields plays a major role in the economy of the local government area. The park also provides a variety of other recreational opportunities for visitors. This includes accommodation facilities in the Park and in Jindabyne, Adaminaby and Berridale, as well as Cooma.

Thredbo is the largest settlement in the resort area used for winter and summer activities followed by Perisher Valley which comprises four separate ski areas, a significant number of lodges and hotels used mainly in the ski season. All properties in Thredbo, Perisher Valley, Charlotte Pass, Smiggin Holes and Guthega are held under non-renewable sub-leases and there are no freehold land sales in the Kosciuszko National Park.

Freehold sales outside of the National Park are considered the most reliable source and guide to market trends for freehold valuations. Ski lodges are subject to NPWS controls and the long standing approach of permissible beds times the rate per bed is the preferred

valuation method.

Villages of Bibbenluke, Cathcart, Craigie and Delegate

Delegate is a small township to the south-west of Bombala with limited services including a hotel, primary school, fuel sales, general store, stock and station agent and fuel sales.

Bibbenluke, Craigie and Cathcart are hamlets with no stores or services.

Bredbo

Bredbo is a small township on the Monaro Highway between Cooma and Canberra with a population of 200. There is a hotel, primary school and several business premises.

Nimmitabel

Nimmitabel is a small township between Cooma and Bombala. The town has a hotel, primary school and several retail stores and services the surrounding rural community and highway trade.

Michelago

Michelago is a village on the Monaro Highway between Bredbo and Canberra. There is a primary school and general store. The market in the area is influenced by Canberra lifestyle buyers rather than the Cooma market.

Numeralla

Numeralla is a village 20 kilometres east of Cooma. There is a primary school but no store or other facilities.


3.3 Main industries

Cooma and Jindabyne are the main townships within the Snowy Monaro Regional Council servicing the wider Monaro rural sector which is largely based on wool and cattle grazing as well as the large permanent population and passing tourist trade. The towns both have significant tourist accommodation and other tourist / recreational infrastructure, a large part of which is located in Kosciuszko National Park. The Snowy Hydro Authority has headquarters in Cooma, together with various State Government agencies. There are hospitals in Cooma and Bombala.

The main employers in the municipality include:-

-Snowy Hydro Authority -Kosciuszko National Park Service -Dongwha timber processing, Bombala -Monbeef, Cooma -Various retailers & small service firms -Shire administrative & works centres -Various ski & recreation hire firms -Tourist accommodation

3.4 Significant retail centres

Retail and service premises are centred in the larger towns of Cooma, Jindabyne and Bombala. Cooma has a busy town centre servicing the wider Monaro region. There are several major supermarkets with mainly local retail businesses, service industries, hotels and restaurants. The Jindabyne business district is the primary retail centre in the western portion of the municipality. The centre contains a supermarket, various restaurants and cafes, three hotels, large hardware store and various specialty stores. The other townships and villages in the western portion, principally Berridale, Adaminaby and Dalgety contain only a very small number of retail and business premises. Bombala has a relatively small town centre comprising local retail businesses, two hotels, RSL licensed club, service premises and stock and station agent.

3.5 Type of residential development

Bombala comprises a modest country town servicing the surrounding agricultural and forestry industries. Housing construction ranges from late 19th century cottages to early 20th period with the majority built from the 1950s to 1970s. There is little current building


activity, the bulk of which comprises renovation and refurbishment. There appears to be little demand for building lots with few out of town buyers and investment activity.

Similarly within the villages of Delegate, Cathcart and Bibbenluke, there is little building

activity.

Cooma comprises a busy country town servicing a significant permanent population, the surrounding agricultural and Snowy Hydro industries and major tourist infrastructure. The town originates from grazing and settlement in the early 19th century with steady growth following. The central area has a range of housing from period cottages, modest 1950s -1970s timber and brick veneer to more recent developments. There are various heritage precincts centred on Lambie Street and around the inner town centre with many designated premises. Cooma North and Cooma East were developed in the early 1950s by the Hydro Authority for worker housing; construction is generally modest fibro cement and timber clad with some undergoing upgrading in recent years. There are several small infill estates with near new housing of average to good quality. Zalka Heights is a modern estate in south-east Cooma developed 15-20 years ago with good quality housing on elevated blocks.

Bredbo, Nimmitabel and smaller villages comprise generally modest to average housing with very limited new development, apart from Michelago where there has been a number of new, good quality homes completed, likely from lifestyle changers from the Canberra market.

Jindabyne comprises a modern country town servicing a significant permanent population, the surrounding agricultural sector, Snowy Hydro industries and major tourist infrastructure. The town originates from the late 1950s when it was relocated on commencement of the Snowy Hydro scheme and construction of Lake Jindabyne. Housing construction ranges from modest 1950s - 60s public housing cottages, better quality 1970s - 1990s brick veneer to more recent good quality brick and timber homes. There are a number of near new, architectural designed, high quality homes in elevated positions overlooking Lake Jindabyne. Tourist and holiday accommodation is significant with the population increasing in summer and winter holiday seasons. There appears to be steady demand for building lots in several estates in Jindabyne and East Jindabyne.

Berridale has some building activity while the villages show very limited activity.


4 State and local government legislation for

LGA

There are three planning instruments for the District: 1) The Bombala Local Environmental Plan (LEP) 2012 (gazetted 29 June 2012). There

has been an amendment No.1 (gazetted 11 April 2014). 2) The Cooma Local Environmental Plan 2013 (LEP) which was gazetted on 25 October

2013. 3) The Snowy River Local Environmental Plan 2013 (LEP which was gazetted on 13

December 2013). These plans aim to make local environmental planning provisions for land in the Snowy Monaro Council Local Government Area in accordance with the relevant standard environmental planning instrument under section 33A of the Act.

Bombala LEP 2012

Zone Minimum Allotment Size

Residential 600m2

Large Lot Residential 2 ha

Business / Industrial By Council Consent

Primary Production Range from 40+ ha depending on locality

Village By Council Consent

Cooma-Monaro LEP 2013


Residential 600m²





Environmental Management 40 ha

Special Purpose By Council Consent

Snowy River LEP 2013


Residential 600m2







Environmental Management By National Parks & Council consent

Special Purposes By Council Consent


5 Market overview and sales of particular interest

5.1 Residential and Peripheral Lifestyle

The market in Bombala township has remained steady with only a small increase of 1.3% in values. The volume of sales has remained steady and appears locally based with little interest from out of town buyers. The market for rural home sites, lifestyle properties and hobby farms located at the periphery of Bombala has seen stronger growth. The market in Cooma township has remained generally steady with a slight increase of 1.04% in values. The modest local economic climate, which is mirrored in many regional areas, has been a major factor leading generally to limited levels of demand for properties in Cooma. There are limited new employment opportunities and limited demand from outside investors. The influence of Canberra lifestyle purchasers remains steady in the northern portion of the LGA for properties within commuting distance of Canberra. There has been stronger growth in rural lifestyle properties within reasonable distance of town services: properties in the periphery of Cooma have experienced a moderate to strong increase; properties in the periphery of Bredbo and Nimmitabel have experienced a moderate increase. The market in Jindabyne township has seen an increase with a 5.6% increase in values. There has been stronger growth for rural home sites and lifestyle properties in the periphery of Jindabyne. The market in Berridale has seen an increase of 7.49% in values. There has been stronger growth for rural home sites and lifestyle properties in the periphery of Berridale.

5.2 Villages

The market in the smaller townships and villages has seen an overall increase of 6.5% however there is wide variation in particular areas from a decrease of 1.8% in Nimmitabel to an increase of 12.5% in Bibbenluke. The volume of sales remains relatively steady with prices reflective of the age, style, condition and quality of accommodation.

5.3 Commercial

Commercial properties are located predominantly in the town centres of Bombala, Cooma and Jindabyne. The market in Bombala has been steady with a 2% increase in values over the period. Businesses essentially serve the town and local area with some passing trade on the Monaro Highway.


Cooma commercial properties comprise a total of 343 properties. There are two main commercial areas, Cooma retail centre and abutting secondary business and service premises, with mixed commercial premises extending along the Monaro Highway; there is a smaller secondary commercial precinct on the Snowy Mountain Highway in the Lambie Street area. There has been a slight increase of 1% in values over the period. Commercial properties in Jindabyne town centre comprise 58 properties; there is a mixed commercial/residential precinct in Netting Circuit and Poley Cow Lane.

5.4 Industrial

The market in Bombala has been steady with no sales evidence in the period. The market in Cooma has been steady with limited sales activity and an increase of 4% overall in values. The markets in Jindabyne and Berridale appear to be similarly steady with limited sales activity and an increase of 5% overall in values.

5.5 Rural Locations within the LGA

The rural market has been firm over the period with an overall increase in values of Primary Production properties of 11.8%.


6 Significant Issues and Developments

6.1 Significant Developments – From Prior to Current

Annual Valuation

Amalgamation of the former Bombala, Cooma-Monaro and Snowy River Shire Councils to create the Snowy Monaro Shire. The Mount Burra estate, a residential lifestyle development of 2 to 8 hectare lots in Burra on the northern edge of the local government area has been completed and several lots have been sold to date. The estate is 20 minutes from Queanbeyan and is marketed to the Canberra-Queanbeyan market. The Ridge and Highview estates in Jindabyne are residential developments with various new stages which have been successfully marketed with steady demand from local buyers and tourist holiday accommodation. The proposal to expand the Snowy Hydro Scheme, Snowy 2.0 was announced early in 2017. Feasibility schemes are presently being prepared with a decision due to be released in February 2018. The decision to proceed with the expansion will likely result in a significant boost in economic activity flowing on to real estate values in the municipality.

6.2 Significant value changes – from prior to current annual

valuation

There have been no significant value changes from the prior to current Annual Valuation.


7 Overview of the quality assurance process

Property NSW has been provided with a detailed Valuation Analysis Report, which details the Quality Assurance Process of QV Australia and outlines that the Verification process and certifies that Land Values meet all Statistical Measures and Component Data Analysis. In addition, a Quality Statement and lists of high value and high risk properties is also provided in the Valuation Analysis Report. Checks have been undertaken to ensure that all properties have been valued, land values are consistent with each other, land value bases have been correctly determined and all concessions and allowances have been supplied. Additionally, properties that had land values amended through the objection or reascertainment process were individually examined to reconcile surrounding land values and ensure accuracy of the grading of surrounding land values. Benchmarks and Reference Benchmarks are core elements of the quality assurance processes and are identified and individually valued in accordance with the Rating and Taxing Procedures Manual Version 7.1.1. 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. Report Prepared by:

Neville Raymant Karen Hill AAPI CPV AAPI CPV Property Consultant Contract Services Manager 26th October 2017

Snowy Monaro Local Government Area · Jindabyne Jindabyne is the major town on the western portion...

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