Final Report 2017 Wentworth Shire – District 255 Base Date ... · Final Report 2017 – Wentworth Shire 8 Buronga Buronga operates largely as a satellite suburb of the regional

Final Report 2017Wentworth Shire – District 255

Base Date 1 July 2017

Final Report 2017 – Wentworth Shire

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Maps


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ContentsMAPS..................................................................................................................................................... 2

1.0 EXECUTIVE SUMMARY...................................................................................................................... 4

1.1 LOCAL GOVERNMENT AREA............................................................................................................................ 41.3 STATE AND LOCAL GOVERNMENT LEGISLATION FOR WENTWORTH SHIRE............................................................... 61.4 MARKET OVERVIEW ...................................................................................................................................... 6

2.0 GENERAL LGA OVERVIEW ................................................................................................................. 7

2.1 LOCATION OF THE DISTRICT ............................................................................................................................ 72.2 PRINCIPAL TOWNS ........................................................................................................................................ 72.3 MAIN INDUSTRIES......................................................................................................................................... 82.4 GENERAL RURAL OVERVIEW ........................................................................................................................... 82.5 CROPPING AND GRAZING ............................................................................................................................... 92.6 VITICULTURE ................................................................................................................................................ 92.7 STATE AND LOCAL GOVERNMENT LEGISLATION FOR LGA .................................................................................. 10

3.0 MARKET OVERVIEW INCLUDING SIGNIFICANT ISSUES AND VALUE CHANGES ................................... 10

3.1 RESIDENTIAL .............................................................................................................................................. 103.2 RURAL LOCATIONS WITHIN THE LGA ............................................................................................................. 113.3 COMMERCIAL AND INDUSTRIAL ..................................................................................................................... 123.4 SIGNIFICANT ISSUES AND DEVELOPMENTS....................................................................................................... 12

4.0 OVERVIEW OF QUALITY ASSURANCE PROCESS ................................................................................ 13

5.0 DISCLAIMER – PURPOSE OF THIS REPORT........................................................................................ 14


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1.0 Executive Summary

1.1 Local Government Area

Wentworth Shire is situated in the south west of the Riverina, part of the South West Region of New SouthWales, located approximately 580 kilometres north of Melbourne, 400 kilometres north east of Adelaide and1,040 kilometres south west of Sydney. Wentworth Shire occupies an area of approximately 26,267 squarekilometres. It has a population of approximately 6,794 (2016 Census) mostly living along the Murray Riveron the southern boundary which includes the towns of Wentworth, Buronga, Gol and Dareton. The Shire'smajor arterials include the Sturt and the Silver City Highways.

The Wentworth Shire is predominantly a rural area but is a region of great diversity with several smalltownships. Rural land is used largely for grazing and horticulture with minor viticulture. Tourism has becomean important part of the economy and the shire now offers the opportunity to escape and experience anintroduction to outback Australia.

The township of Wentworth is a small border town in the far south west of the state and is the region’s oldesttown. Situated at the junction of the Darling and Murray Rivers, its location made Wentworth the busiestport in New South Wales during the paddle steamer era. The border with the state of South Australia liesapproximately 100 kilometres to the west.

Today tourism flourishes within the Wentworth/Mildura area with more than 300,000 visitors each year tothe junction of Australia’s greatest rivers, the Murray and Darling.

4,089 properties were valued at the base date of 1 July 2017, and values are reflective of the property marketat that time. The Wentworth Shire property market has shown moderate increases across all sectors withstrongest growth recorded in the residential market.

Valuation changes in the local government area and percentage changes between the council valuation yearsof 1 July 2016 and 1 July 2017 are as follows;


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1.2 Number of properties valued this year and total land value in dollars

Zone ZoneCode

No. ofentries

New LandValue (2017)

LT LandValue(2016)

New LVto Prior

LT %Change

Prior LocalGovernmentLand Value

(2016)

New LVto Prior

LG %Change

Enterprise Corridor B6 7 $1,653,300 $1,656,000 -0.16% $1,656,000 -0.16%

General Industrial IN1 56 $9,516,060 $7,947,400 19.74% $7,947,400 19.74%

Light Industrial IN2 13 $335,700 $335,700 0.00% $335,700 0.00%

Large Lot Residential R5 179 $43,214,860 $41,756,300 3.49% $41,756,300 3.49%

Public Recreation RE1 11 $660,200 $660,200 0.00% $660,200 0.00%

Primary Production RU1 1,793 $319,168,060 $291,565,090 9.47% $291,565,090 9.47%

Village RU5 2,016 $188,482,530 $184,332,710 2.25% $184,332,710 2.25%

Special Activities SP1 8 $226,800 $226,800 0.00% $226,800 0.00%

Infrastructure SP2 6 $305,600 $305,600 0.00% $305,600 0.00%

Grand Total 4,089 $563,563,110 $528,785,800 6.58% $528,785,800 6.58%

Total Land Value at General Valuation 1 July 2017 = $ 563,563,110Total Land Value Based Date 1 July 2016 = $ 528,785,800Percentage change from 1 July 2016 to 1 July 2017 = 6.58 %

-2%0%2%4%6%8%

10%12%14%16%18%20%

B6 IN1 IN2 R5 RE1 RU1 RU5 SP1 SP2

Pct C

hang

e

Total Land Value Increase Pct by Zone

New LV to Prior LT % Change New LV to Prior LG % Change


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1.3 State and Local Government Legislation for Wentworth Shire

The Wentworth Local Environmental Plan 2011 (Wentworth LEP 2011) revised 1 September 2017 is a legalplanning Instrument approved by the Minister for Planning that imposes the legal framework for the makingof decisions by Wentworth Shire Council in respect to land use development. The LEP contains mandatorylocal environmental planning provisions for land use in the Wentworth local government area and aims tobalance environmental, social and economic considerations for the benefit of future generations. TheWentworth LEP sets out Council’s vision and seeks to implement this by way of objectives, policies, zoningland use tables and zoning maps.

Local government has been given prime responsibility for local planning and heritage conservation withintheir council area through the Environmental Plans and subsequent development control practices. The newcomprehensive Local Environmental Plan incorporates the appropriate standard heritage conservationclauses as issued by the New South Wales Department of Planning.

State and Local Government Legislation for LGA

Zone Code Zone No. of entries

B6 Enterprise Corridor 7

IN1 General Industrial 56

IN2 Light Industrial 13

R5 Large Lot Residential 179

RE1 Public Recreation 11

RU1 Primary Production 1,793

RU5 Village 2,016

SP1 Special Activities 8

SP2 Infrastructure 6

Total 4,089

1.4 Market Overview

LG Valuation Services has undertaken significant analysis of the Wentworth Shire property market to providean accurate and reliable basis of valuation. Since September 2016, 167 sales have been analysed to enablethe establishment and verification of land values as at 1 July 2017, representing 95% of all property sales inthe shire. These sales also supported the grading across components. Analysed sales reports are providedto Land and Property Information on a consistent basis throughout the year. The added value ofimprovements are also analysed to enable the accurate deduction of land values. LG Valuation Servicesundertakes this process using the Pairs Sales Analysis Approach and the Replacement Cost Approach.

In analysing sales before 1 September 2016, it is necessary to adjust the contract price in terms of marketmovement. In the Wentworth Shire, this year sales generally indicated a growth of 6.58% over the 12months. Rural properties showed a growth of 9.5% in values throughout the year. General Industrial had asignificant increase of 19.74% and Residential and Large Lot Residential increased between 2 and 3.5.


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2.0 General LGA Overview

2.1 Location of the District

Wentworth Shire covers an area of 2,616,926 hectares and is situated 1,040 kilometres from Sydney, 580kilometres from Melbourne and 400 kilometres from Adelaide. Wentworth Shire is bordered by Balranaldto its east, Central Darling and Broken Hill Shires to its north.

The southern boundary (along the Murray River) has the greatest population density in the townships ofWentworth, Dareton, Buronga and Gol Gol.

The Wentworth Shire is considered the gateway to Outback New South Wales. Mildura situated on theVictorian side is the nearest and biggest commercial city.

2.2 Principal Towns

Wentworth

Moorna Post Office opened on 22 February 1885 and was renamed and declared a town in 1859. Lying atthe confluence of the Darling and Murray Rivers, in the 1890’s there were 92 paddle steamers working theDarling and between 1860 and 1930 Wentworth was the busiest inland river port in Australia with over 450craft using it in a year. It has a semi-arid climate normally experiencing hot summers and mild winters.

The shire’s administration centre is here and it enjoys a village feel where the heritage town drive or walkcan be enjoyed by all.

These days Wentworth is now an important tourist outback destination and a gateway to Lake Mungo andMungo National Park.

In the 2016 census, there were 1,437 people living in Wentworth.

Dareton

Dareton is a town in the far west of New South Wales. The town is located on the Silver City Highway, 1,025kilometres west of the state capital, Sydney and 20 kilometres from the regional centre, Mildura, across theborder in Victoria. Dareton was once home to an Aboriginal mission; this is now a residential area forAboriginal people. Part of the Wentworth local government area, at the 2016 census, Dareton had apopulation of 501.

Coomealla

Located on the Murray River, the town is at the heart of the Coomealla Irrigation Area and primarily producesgrapes and dried fruit. It also boasts a championship golf course and is a popular location with both touristsand locals for fishing and camping.

Gol Gol

Gol Gol is a small town in the far western region of New South Wales, Australia in the Wentworth Shire. It issituated on the banks of the Murray River, in the Sunraysia region. Gol Gol currently has a population ofabout 1523 (2016 census). Within the township there is a hotel, garage, general store, primary school andpre-school. The major industry in the Gol Gol area is irrigated horticulture, primarily citrus, vegetables andgrapes.


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Buronga

Buronga operates largely as a satellite suburb of the regional centre of Mildura. In 2016 census, the townhad a population of 1,212 people. Buronga is considered the industrial base of the Wentworth Shire and isthe home of the Country Energy depot and several other industrial businesses. Other services include aprimary school, 2 churches and a post office.

Pooncarie

Pooncarie is an outback oasis along the route from Wentworth to Menindee and Broken Hill, situated 150kilometres north of Mildura, Victoria and 117 kilometres north of Wentworth New South Wales. Pooncarieis semi-arid with an outback landscape rich in eucalypt woodlands and has a population of 166 as at the 2016census.

2.3 Main Industries

The major industry of the area is irrigated horticulture with the primary crops being citrus, vegetables andgrapes.

Tourism to the Outback has invigorated these south western Riverina towns.

Where once there were major agricultural stations, the properties are smaller now and rely on irrigation tosupport their crops and livestock.

Investment in irrigated based horticulture and the wine industry has driven industry growth and employmentin the Wentworth Shire over the past decade.

While agriculture still remains the largest employment sector of the shire, these numbers are decreasing.Growth areas for employment now include mining (sand) and manufacturing (wineries and food).

Dareton today is a producer of grapes and dried fruit. It boasts a championship golf course and is a popularlocation for fishing and camping.

Heavy Mineral Sands is the main commodity focus for mineral exploration. Iluka Resources and Cristal Miningin particular have been active in the region for a number of years, targeting ancient beach sand depositsprevalent in the north of the shire around Pooncarie. While Cristal’s Ginkgo and Snapper deposits have beenmined for a number of years the proposal to open a further mine (Crayfish) has met with opposition. Whilethe mines currently provide employment for approximately 500 local employees and contractors, andundoubtedly injects significant funds into the local economy, land prices are largely unaffected.

2.4 General Rural Overview

Activity in the Southern Riverina property market, which has been relatively subdued in recent years, hascontinued to improve over the past 12 months. Prior to this period the market in this region had generallystruggled following the drought.

For a time following the drought, primary producers were focusing on paying down debt incurred during thedrought and in some cases replenishing stock numbers and/or fodder supplies.

During this period, some of the less efficient farmers were forced, or made the decision, to sell up. Givendemand was low, prices reduced slightly in accordance.


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More recently, good seasonal conditions and high cattle and commodity prices appear to be improvingprimary producer optimism and influencing reasonable demand for Southern Riverina rural properties.

This has resulted in farmers in certain districts looking to expand.

2.5 Cropping and Grazing

The market for good quality cropping and grazing land in southern New South Wales has enjoyed a strong 2years, with sound commodity prices, low interest rates driving competition for such holdings. Mostcompetition has been observed to be between expansionist neighbours, who continue to seek additionaleconomies of scale from their existing investment in plant and equipment. High quality cropping country isnow at record levels through much of central and southern New South Wales, and similarly, high qualitysheep country (as well as country versatile enough to run cattle) is also very strongly traded.

The improved seasonal conditions during the period have created moderate market enthusiasm, and upwardprice pressure is expected to remain for the next 6 months.

2.6 Viticulture

There is a significant disparity between operating conditions for cool climate vineyards relative to warminland vineyards. The Winemakers Federation 2017 Vintage Report showed the crush from cool/temperateregions increased by 9 per cent to 0.61 million tonnes and accounted for 31 per cent of the national tonnes.In warmer inland regions (Riverina, Murray Darling–Swan Hill and Riverland) the crush increased by 3 percent to 1.32 million tonnes, making up 69 per cent share of the national crush.

The 2017 Vintage report concluded;

In a continuing trend of positive increases for the Australian grape and wine sector, the national crush is estimatedto be 1.93 million tonnes – an increase of 5 per cent from the 2016 vintage – and the national average purchaseprice increased by 7 per cent $565 per tonne – the highest since 2008. Wine Australia Chief Executive OfficerAndreas Clark said, ‘the increases reflect excellent seasonal conditions in many regions as well as the growingdemand for Australian wine, both in export and domestic markets. ‘Pleasingly, the figures from the NationalVintage Report indicate that the supply and demand for Australian wine is in balance. An additional 93,000 tonneswere crushed this year, which produces approximately an additional 65 million litres of wine. This is in line withincreased demand for Australian wine: in 2016–2017, exports increased by 50 million litres, and domestic salesincreased by 12 million litres in 2015–2016, a total of 62 million litres.’Australian Vignerons Chief Executive OfficerAndrew Weeks said, ‘the third consecutive rise in the average purchase price of winegrapes is a positivedevelopment for Australia’s winegrape growers.


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2.7 State and Local Government Legislation for LGA

The Wentworth Local Environmental Plan was gazetted/published in 2011. The current version of the LWPis dated 1 September 2017.

The aims of the Wentworth LEP 2011 are:-

(1) This Plan aims to make local environmental planning provisions for land in Wentworth in accordancewith the relevant standard environmental planning instrument under Section 33A of the Act.

(2) The particular aims of this Plan are as follows:(a) to encourage and manage ecologically sustainable development within Wentworth,(b) to encourage the retention and enhancement of land that supports the primary economicactivities within Wentworth for productive agriculture and other primary production purposes,(c) to conserve and protect items of European and Aboriginal cultural heritage,(d) to conserve and protect areas of environmental significance, particularly conservation parks,reserves and the Murray and Darling River systems.

3.0 Market Overview including Significant Issues and Value Changes

3.1 Residential

Summary of Valuation Changes to Residential Land

Residential – residential sales across all towns have shown steady increases in recent times.Pooncarie and Dareton have seen a slight increase in values.

35 sales since 1 September 2016 (100% inspected and analysed) in Gol Gol have shown a slightlystronger increase due to their proximity to the Murray River, affordability and retirees/investors.

20 sales (100% inspected and analysed) in Wentworth Residential occurred since 1 September 2016which has continued to show a positive increase of 3.19%. This is due to Wentworth Townshipfronting both the Murray and Darling Rivers, affordability and proximity to Mildura.

4 sales (100% inspected and analysed) occurred along Wentworth River Frontage has continued toshow strong demand with an increase of 4.68%.


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3.2 Rural Locations Within the LGA

Summary of Valuation Changes to Rural Land

Activity in the rural property market has continued to improve in 2017. This is attributable to improvedenvironmental factors and seasonal conditions.

Irrigation properties and horticultural blocks at Gol Gol, Dareton and Buronga have all remainedsteady. Dryland cropping has also remained steady. Overall broad acre rural properties haveexperienced a slight increase between 2% - 5% over the past 12 months.

Rural Residential – Sales have been consistently strong across lifestyle/hobby farms with slightincreased demand for these properties providing approximately a 3.5% increase in general. RuralHome sites with Murray River frontage in particular experienced a 4.88% increase.

The market for horticulture/viticulture land in Pomona/Ellerslie has shown a moderate 9.81%increase. This is due to price affordability and located along the Darling River.

Murray and Darling River have continued to show steady growth with an increase of 3.42% in values.

Broadacre Grazing has shown a significant increase of 31.46% in the last 12 months. This market hasincreased due to favourable seasonal conditions and strong commodity prices. Rural land is tightlyheld and when properties are presented to the market they receive strong interest from adjoiningowners as well as increased involvement from corporate farming entities and interstate buyersparticularly from Victoria.

Curlwaa Horticulture with 7 sales (100% inspected and analysed) has also shown a significantincrease of 15.13%. This is also attributed to favourable seasonal conditions, price point affordabilityand close proximity to Mildura.


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3.3 Commercial and Industrial

Summary of Valuation Changes to Commercial Land Businesses in Wentworth have shown a moderate increase of 4.06% to land values since the previous

revaluation.

Mildura is the main provider for retail and services within the Sunraysia region.

Summary of Valuation Changes to Industrial Land The industrial component has shown a strong increase of 19.74% in land values in the last 12 months.

This is mainly due to a new industrial subdivision release on the northern fringe of Buronga. Thisestate is being purchased predominately by owner occupiers to construct purpose built warehousesat a competitive rate per square metre in comparison to similar property types and location inMildura.

3.4 Significant Issues and Developments

There are a number of new and developing subdivisions between Buronga and Gol Gol that areproviding good quality housing within close proximity to Mildura.

Water availability as a result of the Murray Darling Basin Plan still remains a very contentious issuepotentially impacting all market sectors.

3.5 Significant Value Changes

A sale along River Road Pomona with Darling River frontage has highlighted land values for ruralresidential properties along the river side of River Road have significantly increased.

A property in Corbett Avenue, Buronga was purchased by a development company for futureredevelopment. This property has been recoded Englobo Land and the value has been handcraftedto be more in line with the market.

A sale occurred along Delta Road Curlwaa with frontage to Tuckers Creek. Analysis indicated apremium was paid for Creek frontage. Land value was handcrafted to be more in line with currentmarket levels.


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4.0 Overview of Quality Assurance Process

LG Valuation Services has been provided with a detailed Valuation Analysis Report from New South WalesLPI, which details the Quality Assurance Process of Contractors and outlines the Verification process andcertifies that Land Values meet all Statistical Measures and Component Data Analysis. In addition, a QualityStatement and lists of high value and high risk properties will also be provided in the Valuation AnalysisReport. Checks have been undertaken to ensure that all properties have been valued, land values areconsistent with each other, land value basis’ have been correctly determined and all concessions andallowances have been supplied. Additionally, properties that had land values amended through the objectionor re-ascertainment process will be individually examined to reconcile surrounding land values and ensureaccuracy of the grading of surrounding land values. Benchmarks and Reference Benchmarks are coreelements of the quality assurance processes and are identified and individually valued in accordance withthe Rating and Taxing Procedures Manual Version 7.1.1.

I certify that the above information is an accurate account of the activities undertaken, reviews completedand quality control checks in place for Wentworth Shire.

AuthorReport Prepared By:

Oliver Boyd AAPI CPVContract Services Manager

LG Valuation Services Pty LtdPart of HMC Property GroupPO Box 66Moama NSW 2731

Phone: 03 5851 2200Email: [email protected]

31 October 2017


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5.0 Disclaimer – Purpose of this Report

The purpose of this report is to describe the process and considerations for the 1 July 2017 Valuation ofWentworth Shire. 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 ofthis 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 ValuationProcedures Manual. The manual allows mass valuation methodologies that involve assessing large numbersof properties as a group to be utilised where appropriate. Mass valuation methodologies are by their naturelikely to be less accurate than individually assessed valuations, however are utilised worldwide for rating andtaxing 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 onenquires undertaken during the valuation process. Third parties should make their own inquiries into thesedetails 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 theinformation contained in this report.

More information on the valuation process is available from the Land and Property Information website atwww.lpi.nsw.gov.au/valuation.

Documents

Final Report 2017 Wentworth Shire – District 255 Base Date ... · Final Report 2017 – Wentworth Shire 8 Buronga Buronga operates largely as a satellite suburb of the regional