PLAN.CREATE.ENHANCE.
VALUATION REPORT.
Clyde Precinct Development Contributions Plan (DCP) Land Assessments
Thompsons Road Precinct Structure Plan No. 1053 Clyde Creek Precinct Structure Plan No. 1054 Casey Fields South Precinct Structure Plan No. 1057.1
Prepared For Metropolitan Planning Authority (MPA)
Date of Valuation - 8 January 2014
CONTENTS. Executive Summary. ................................................................................................................... 1 1.
Title and Statutory Details. ................................................................................................ 6
2.
Planning Considerations. ................................................................................................. 12
3.
Land and Locality Description. ........................................................................................ 15
4.
Scope of the Development. ............................................................................................. 20
5.
Market Considerations..................................................................................................... 24
6.
Valuation Rationale. ........................................................................................................ 31
7.
Valuation and Valuation Compliance Statement. ............................................................ 32
8.
Assumptions / Qualifications. .......................................................................................... 34
ANNEXURES. Letter of Instruction Title Details Planning Details Future Urban Structure Plan Land Budget Encumbered Open Space Plan Property Specific Assessments
CLYDE PSP’S DCP LAND ASSESSMENTS
PAGE 1
EXECUTIVE SUMMARY.
Clyde North PSP’s DCP Land Assessments INSTRUCTIONS. Client Instructions. Melbourne Planning Authority Level 29 35 Collins Street MELBOURNE VIC 3000 (Alexandrea Malishev, Senior Precinct Structure Planner) Date of Instruction - 25 October 2013. Refer to Assumptions / Qualifications - Terms of Reference. Refer to Assumptions / Qualifications - Definition of Market Value.
Purpose. To assess the fair market value of the land within the Clyde Precinct Structure Plans (PSP’s) in order to provide a calculated average broad hectare rate attributable to land within the precincts for application of the Clyde PSP’s Development Contributions Plan (DCP). This assessment provides that the land has appropriate approval for highest and best underlying use identified. The values assessed in this instance have been concluded in accordance with the API definition of market value being: “The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion.” Elements traditionally associated with compensation as described within the Land Acquisition and Compensation Act 1986 including (but not limited to) severance, disturbance, enhancement / depreciation and special value do not form part of the assessed values. The assessments of the individual holdings have been concluded from an external inspection and publicly available information relating to the development potential of each holding. Detailed development potential for each holding has not been provided at the time of valuation.
Prepared By. Thomson Maloney & Partners Pty. Ltd. T/A Charter Keck Cramer Thomas Brosnan, B.AppSc (Val), AAPI Certified Practising Valuer API Member No 63561 Telephone 03 8102 8806
Claudio Petrocco, B.Bus (Prop), AAPI Certified Practising Valuer API Member No 62402 Director Telephone 03 8102 8910
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CLYDE PSP’S DCP LAND ASSESSMENTS
Charter Keck Cramer Reference. 113419:J02541:TB/CP:NM H:\THOMAS_BROSNAN\113419-R.DOC
Liability limited by a scheme approved under Professional Standards Legislation.
PROPERTY. Description. The Clyde PSP’s area comprises of three PSP’s identified as:
PSP 1053 - Thompsons Road.
PSP 1054 - Clyde Creek.
PSP 1057.1 - Casey Fields South.
The three PSP’s relate to a total of 100 holdings providing a total gross area of 1,889.44 hectares plus road reservations and rail corridors. The Clyde North PSP’s area is broadly bound to the north by Thompsons Road, Smiths Lane and Bells Road to the east, Ballarto Road to the south and Urban Growth zoned land within the Cranbourne East PSP to the west. A number of arterials dissect the precincts including Hardys Road, Tuckers Road and Pattersons Road. The PSP’s area has been identified primarily for residential and development, together with a small area identified as future industrial employment land at the north-west of the locality and a town centre and Government education facilities. An extract of the Draft Future Urban Structure Plan (not to scale) is shown below:
SOURCE - Metropolitan Planning Authority
CLYDE PSP’S DCP LAND ASSESSMENTS
PAGE 3
In accordance with the land budget, prepared by the Metropolitan Planning Authority (MPA) dated 22 January 2014 and correspondence received from the MPA, dated 19 February 2014, we have deducted encumbered land associated with the power / gas easement, waterway corridor / wetland / retarding basin, desalination pipe easement, heritage protection zones and conservation areas to indicate a developable area totalling 1,694.50 hectares. Pursuant to the Draft Future Urban Structure Plan, the north-western portion of PSP 1053 - Thompsons Road is proposed to yield industrial employment uses. The land budget identifies an industrial area of 41.50 hectares, with the remaining area to be of residential and commercial uses. A summary of the total areas within the precincts and developable land area adopted within our valuation is noted as follows:
Area (Hectares) PSP No. 1053 1054 1057.1 Total
Parent
Residential/ Commercial
Employment
676.33 1,103.94 109.17 1,889.44
534.76 1,013.67 104.57 1,653.00
41.50 41.50
Gross Developable 576.26 1,013.67 104.57 1,694.50
VALUATION DETAILS. Date of Inspection. We have inspected the subject properties within the three PSP’s on numerous occasions, with the date of our most recent inspection being 8 January 2014.
Date of Valuation. 8 January 2014. Refer to Assumptions / Qualifications - Date of Valuation.
Valuation Methodology. In accordance with your instructions we have adopted the overall Broad Hectare Valuation Approach, which refers to an overall value per hectare applicable for all properties contained within the PSP’s. The average size of the properties contained with the PSP’s is adopted for the basis of the assessment.
Valuation Summary. In arriving at our assessment of value, we have assessed the value of the individual parent holdings on the direct comparison approach, having regard to the sales of land released in the south-eastern growth corridor, market considerations and the associated positive and negative externalities. Accordingly, we have adopted value rates derived by the interpolation of determined rates to apply to the gross
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CLYDE PSP’S DCP LAND ASSESSMENTS
developable area of the parent holdings. In accordance with your specific instruction, we have expressed the value assessed as a value rate per hectare in accordance with the proposed uses. Subject to the assumptions and qualifications within this report, the average overall broad hectare value expressed as a rate per hectare [exclusive of Goods and Service Tax (GST)] for each proposed use is as follows:
Proposed Use
Rounded Average Value Rate (Per Hectare)
Residential Industrial
$560,000 $250,000
Critical Issues. Our valuation has been completed on the basis:
The subject property relates to 100 parent parcels within the Clyde North precincts which have been identified as land for future development.
Areas have been derived from the Clyde North PSP’s Land Use Budget prepared by the MPA.
Underlying zones of the subject holding have been adopted from planning maps contained within the Department of Planning and Community Development (DPCD) website. Our valuation is provided on the basis the current adopted highest and best use accords with the zoning and overlay provisions.
The parcels are considered to have future urban development potential in accordance with the PSP’s, with existing improvements not being incorporated within our assessment.
The land affected by an overland transmission line easement has been identified within the Clyde North PSP’s Land Use Budget as encumbered land.
Land within the PSP’s are unaffected by unsupervised fill, soil or groundwater contamination.
The land within the PSP’s are unaffected by Aboriginal or archaeological artefacts of significance.
Land identified as having heritage value has been identified as encumbered land within the Clyde North PSP’s Land Use Budget. Our valuation is provided on the basis there is no cost and/or adverse implications resulting from the heritage place including restoration, maintenance, or impact on development potential.
There is no cost and/or adverse implications identified within the current and/or future Cultural Heritage Management Plans (CHMP’s).
The land is unaffected by flora and fauna issues. Our valuation does not reflect the area and/or cost of the required offset for the removal of native vegetation.
Land identified for conservation areas and regional open space has been identified as encumbered land within the Clyde North PSP’s.
Our valuation does not reflect compensation for land included within the Public Acquisition Overlay (PAO) relating to the widening of Berwick-Cranbourne Road.
Land incorporated within the Urban Floodway zone has been identified as encumbered waterway corridor / wetland / retarding land within the land budget and no further allowances or costs are required for the development of the parent holdings.
The current highest and best use for the holdings within the precinct area has been adopted as inglobo residential or employment development land.
The assessments of the individual holdings have been concluded from an external inspection and publicly available information relating to the development potential of each holding.
CLYDE PSP’S DCP LAND ASSESSMENTS
PAGE 5
Services and facilities are available to the precinct including water, gas, electricity, telephone and mains sewer. However, costs associated with augmentation of services to the individual parcels are not known. The costs associated with extending services to the land are not reflected in our assessment of value.
Our assessment does not reflect site specific costs such as fill, extension of services, design, external site specific costs, holding periods due to planning requirements and/or buffered land.
Our assessment has been concluded on the basis the identified parent holdings are assessed as individual titles, with our assessment not reflecting current ownership patterns for the holdings.
Our assessment has been provided on the basis the land is zoned appropriately and issued appropriate Town Planning approval for residential or employment use as identified.
Our assessment of value has been concluded on the basis that services are extended to each parcel, having occurred in accordance with the PSP’s and such infrastructure and services are reticulated within the PSP’s area and can be augmented to service the proposed underlying uses.
This assessment does not reflect works moratorium implemented by Casey City Council such as up front infrastructure works and provision of services prior to commencement of development.
Our assessments reflect that the Growth Areas Infrastructure Contribution (GAIC) liability affects all properties within the precinct.
Our assessments are exclusive of Goods and Services Tax (GST).
Disclaimer. This Executive Summary should be read in conjunction with the balance of this report. The report has been prepared subject to various qualifications, disclaimers and assumptions detailed throughout the report and within the Assumptions / Qualifications section. Refer to Assumptions / Qualifications - Third Party Disclaimer.
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1.
CLYDE PSP’S DCP LAND ASSESSMENTS
TITLE AND STATUTORY DETAILS.
Title Particulars. In accordance with our instructions we have searched the individual Certificates of Title for each parcel within the Clyde North PSP’s which we provide a summary of as follows: PSP 1053 - Thompsons Road. Parcel
Volume / Folio
Lot
Plan
Registered Proprietor
Encumbrances
1
10561 / 160
2
PS637242X
1993 A.D. Pty Ltd
2 3
10561 / 161 10561 / 162
2 3
PS438890U PS438890U
Clevland Park Pty Ltd Clevland Park Pty Ltd
4
10561 / 163
4
PS438890U
Parkworth Pty Ltd
5
10027 / 605
3
PS300094R
Gordon Gill & Margaret Shirley Gill
6
10027 / 604
2
PS300094R
Gordon Gill & Margaret Shirley Gill
7
10528 / 301
2
PS433177T
Gordon Gill & Margaret Shirley Gill
8
10528 / 300
1
PS433177T
Mark Anthony Phelan
9
10027 / 606
4
PS300094R
Gordon Gill & Margaret Shirley Gill
10
9960 / 867
1
LP219881J
Peter John Willis & Eleanor Galt Willis
11
10240 / 186
1
PS327985F
Garry David Oates & Julie Lynette Oates
12
10240 / 187
2
PS327975F
Nancye Margaret Gearon
13
10240 / 188
3
PS327975F
14
9557 / 785
1
LP145792S
Nancye Margaret Gearon C. Mctaggart Pty Ltd
Caveat No. AC531066S Notice No. AH462111E Notice No. AH462111E Covenant as to part G024347 Notice No. AH462111E Covenant as to part G024347 Notice No. AH462111E Mortgage No. L055157L Notice No. AH462111E Mortgage No. L055157L Notice No. AH462111E Mortgage No. L055157L Notice No. AH462111E Mortgage No. AF562182P Notice No. AH462111E Mortgage No. L055157L Notice No. AH462111E Mortgage No. AJ367379W Notice No. AH462111E Mortgage No. W669073C Mortgage No. W952181B Notice No. AH462111E Caveat No. AH662891H Notice No. AH462111E Notice No. AH462111E
15 16
10159 / 328 10817 / 868
1 1
TP81537K PS522427B
17
10817 / 869
2
PS522427B
18 19 20
9821 / 481 9821 / 480 10231 / 586
2 1 1
LP136810 LP136810 TP2176N
Clyberry Pty Ltd Natural Light Solutions Pty Ltd; P C J F R Enterprises Pty Ltd; F & C Landholding Pty Ltd Frank Anthony Sofra & Christina Sofra Daniel Robertson Pty Ltd Daniel Robertson Pty Ltd Daniel Robertson Pty Ltd
Caveat No. AG733479E Notice No. AH462111E Notice No. AH462111E Notice No. AH462111E
Mortgage No. AG905167T -
CLYDE PSP’S DCP LAND ASSESSMENTS
Parcel
Volume / Folio
21
PAGE 7
Lot
Plan
Registered Proprietor
Encumbrances
10105 / 297
1
TP110300M
Caveat No. AH094922P
22
8430 / 126
1
TP324245Y
23
5507 / 303
1&2
TP699278M
24
8215 / 864
1
TP529521J
25 26 27
10257 / 263 11220 / 237 10000 / 891
1 1 1
TP129195A TP946389D TP95062E
Darren Bradley RussellCroucher & Jacqueline Maree Russell Croucher; Raymond Francis Wright; Lottie Lenore Wright; Sandra Lenore Wright Luigi Bernardo & Michelina Bernardo Annette Evelyn Dee; Catherine Robert Taubitz; James Victor Dee; John Anthony Dee; Adrian Francis Dee Jenny Marianne Collins; Jacinta Anne Dunca; Edith Verkaik Gary James Francis
28
10000 / 890
1
TP95053F
29
10000 / 889
1
TP95958F
30
10000 / 888
1
TP95058U
31 32 33 33a
11159 / 452 11159 / 452 11159 / 452 11159 / 452
4 3 2 1
TP944262Q TP944262Q TP944262Q TP944262Q
Jenny Marianne Collins; Jacinta Anne Dunca; Edith Verkaik Jenny Marianne Collins; Jacinta Anne Dunca; Edith Verkaik Jenny Marianne Collins; Jacinta Anne Dunca; Edith Verkaik Jenny Marianne Collins; Jacinta Anne Dunca; Edith Verkaik Albert John Turner Albert John Turner Albert John Turner Albert John Turner
Caveat No. AH978143N Mortgage No. AK712466E Caveat No. AK712447C Notice No. AH462111E Mortgage No. AE593270B Notice No. AH462111E Mortgage No. W079539S Mortgage No. AE593270B
Mortgage No. AE593270B
Mortgage No. AE593270B
Mortgage No. AE593270B
-
PSP 1054 - Clyde Creek. Parcel
Volume / Folio
Lot
Plan
Registered Proprietor
Encumbrances
1
3188 / 558
1
TP692877
Notice No. AH462111E
2
5507 / 303
1
TP699278
3
6043 / 546
1
TP391852
4
8603 / 816
2
LP121793
Annette Evelyn Dee; Catherine Roberta Taubitz; James Victor Dee; John Anthony Dee; Adrian Francis Dee Annette Evelyn Dee; Catherine Roberta Taubitz; James Victor Dee; John Anthony Dee; Adrian Francis Dee Annette Evelyn Dee; Catherine Roberta Taubitz; James Victor Dee; John Anthony Dee; Adrian Francis Dee Clyde Springs Developments Pty Ltd
Mortgage No. AK712446E Caveat No. AK712447C Notice No. AH462111E Notice No. AH462111E
Mortgage No. AB711646E Notice No. AJ763369R
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CLYDE PSP’S DCP LAND ASSESSMENTS
Parcel
Volume / Folio
Lot
Plan
Registered Proprietor
Encumbrances
5
10172 / 206
1
LP121793
Mortgage No. T042364E
6
8696 / 243
2
LP78726
7
8680 / 804
1
LP77593
8
10055 / 860
1
TP89583
Ronald Louis Bertoncello; Pamela Maureen Bertoncello Clyde Springs Developments Pty Ltd Leo Kentepozidis & Helen Mary Kentepozidis John Robert Kirkham
9
3099 / 675
1
TP704693
John Robert Kirkham
10
9694 / 005
CP162395
Antonio Cardamone & Rosa Cardamone
11
9705 / 352
CP163141
William Arthur Joseph Shearer & Susan Ruth Petra Shearer
12
10544 / 086
1
TP19324
Hosam Edward Rizkallah
13
2220 / 934
1
TP583892
Shamal Salgadoe & Ana Guadalupe Salgadoe
14
10190 / 317
TP792
Roderick James Chaplin & Julie Ann Chaplin
15
9746 / 039
1
TP116036
Antonio Cardamone & Rosa Cardamone
16
8964 / 244
3
LP78726
Pi-Ling Sun & Kuo-Yen Hsu
17
8041 / 399
1
TP556375
18
8041 / 400
1
TP709200
19
10032 / 881
2
PS305667
Geraldine Margaret Ferguson Jane Patrick Thomas Hyland & Maree Elizabeth Hyland Frank Thomas Allen
20
10032 / 880
1
PS305667
21 22
9963 / 681 10708 / 398
1 2
TP124388 PS500076
23
9793 / 360
1
TP117817
Thessaloniki Holdings Pty Ltd
24
10708 / 397
1
PS500076
Jamie Andrew Lees & Olivia Rose Lees
25
3915 / 946
Crown Allotment 51
Parish of Cranbourne
Azinna Pty Ltd
Glenda Margaret Novotny Roads Corporation Merle Claire Bundy
Mortgage No. AB711646E Caveat No. AH803777Y Mortgage No. AH799378F Caveat No. AK531041Q Caveat No. AK555848F Mortgage No. AH799378F Caveat No. AK531041Q Caveat No. AK555848F Notice No. AH462111E Caveat No. AH440346Y Notice No. AH462111E Mortgage No. X665965S Mortgage No. AB687425B Notice No. AH462111E Mortgage No. AE646558L Mortgage No. AJ530086F Notice No. AH462111E Mortgage No. AG593492K Notice No. AH462111E Mortgage No. AE426393V Caveat No. AH709393T Notice No. AH462111E Caveat No. AH440346Y Notice No. AH462111E Mortgage No. AG783486A Covenant No. F112530 Notice No. AH462111E Mortgage No. AJ974625X Notice No. AH462111E Mortgage No. AF3588775Y Notice No. AH462111E Notice No. AH462111E Caveat No. AH198591G Notice No. AH462111E Mortgage No. AG385808Y Caveat No. AJ112238R Caveat No. AJ394159J Caveat No. AK582090N Notice No. AH462111E Mortgage No. AD353208G Notice No. AH462111E Caveat No. AJ866884A Notice No. AH462111E
CLYDE PSP’S DCP LAND ASSESSMENTS
Parcel
Volume / Folio
26
PAGE 9
Lot
Plan
Registered Proprietor
Encumbrances
8106 / 721
1
TP326304
Notice No. AH462111E
27
8106 / 720
1
TP331992
28
10153 / 602
3
PS320942
29 30
10153 / 600 10153 / 601
1 2
PS320942 PS320942
31
9019 / 365
1
TP133042
32
9775 / 458
2
LP209371
Geoffrey Clarence Corrigan & Marion Helen Corrigan Geoffrey Clarence Corrigan & Marion Helen Corrigan Bruno Grossi Farm Pty Ltd Kenneth Ian Walker Karen Louise BellTowers & Jody Arthur Wellsley Bell-Towers The President Councillors and Ratepayers of the Shire of Cranbourne Schreurs Properties Pty Ltd
33
10109 / 025
1
LP209371
34
11121 / 145
1
TP939261
35
11121 / 146
Parish of Cranbourne
36
2946 / 200
37
9399 / 506
Crown Allotment 52 Crown Allotment 55 1
38
10562 / 111
1
TP20125
39
10335 / 711
1
PS339215
40
10106 / 700
1
PS318331
41 42 43
10335 / 712 3099 / 656 8964 / 441
2 1 2
PS339215 TP902301 LP96868
44 45
9050 / 392 8964 / 440
1 1
TP164141 LP96868
46 47 48 49
8836 / 829 8836 / 830 8836 / 831 10686 / 732
3 4 5 1
LP88097 LP88097 LP88097 PS507865
Ross Jeffrey Winderlich Robert Mark Wheater & Donna Leah Marsland Russell John Manks Daryl Stuart Manks Valeure Joan Bucknell Tanya Maria Spring
50
10686 / 733
2
PS507865
Leonard Mollica
Garry Leonard & Isabel Christina Rowarth Schreurs Properties Pty Ltd Julie Elizabeth Ince
Notice No. AH462111E
Notice No. AH462111E Notice No. AH462111E Mortgage No. AH276778F Notice No. AH462111E Notice No. AH462111E
Caveat No. S047654U Notice No. AH462111E Notice No. AH462111E Notice No. AH462111E
Parish of Cranbourne
Mary Elizabeth McCarthy
Notice No. AH462111E
TP126696
Bruce Leonard Smith & Cheryl Jean Smith Nick Baldi Constructions Pty Ltd
Notice No. AH462111E
Schreurs Properties Pty Ltd Saviour Azzopardi & Nancy Azzopardi Johanna Maria Schreurs Gordon Thomas Manks Kayvee Nominees Pty Ltd
Caveat No. AJ662081D Notice No. AH462111E Notice No. AH462111E Notice No. AH462111E Notice No. AH462111E Notice No. AH462111E Mortgage No. AH574909F Caveat No. AH679947M Notice No. AH462111E Mortgage No. AE071858B Notice No. AH462111E Notice No. AH462111E Notice No. AH462111E Mortgage No. AJ192766M Agreement No. AB572224D Notice No. AH462111E Mortgage No. AH296768V Agreement No. AB572224D Notice No. AH462111E
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CLYDE PSP’S DCP LAND ASSESSMENTS
Parcel
Volume / Folio
Lot
Plan
Registered Proprietor
Encumbrances
51
6565 / 988
CA54
Parish of Cranbourne
Notice No. AH462111E
52
9399 / 506
2
TP126696
53
8486 / 685
1
TP665513
Salvatore Di Rienzo & Antonietta Di Rienzo & Pasquale Di Rienzo & Mario Di Rienzo Bruce Leonard Smith & Cheryl Jean Smith Dunsted Pty Ltd
54
6160 / 901
1
TP814356
55 56
11393 / 220 3993 / 424
1 1
TP896901 TP444931
57
9135 / 417
1
TP180961
58
9000 / 407
2
LP30210
59
8806 / 545
1
TP568353
Lot
Plan
Registered Proprietor
Encumbrances Mortgage No. AD003419X Notice No. AH462111E Notice No. AH462111E
Salvatore Di Rienzo & Antonietta Di Rienzo Pitteuchar Pty Ltd The Minister of the Crown for the time being administering the Education Act Benjamin William Disney & Ashlee Jade Knox Louise Carmen Jackel & Louise Phillippa Carter Paleolgos Magias & Christina Mary Magias
Notice No. AH462111E Mortgage No. AJ174370R Notice No. AH462111E Notice No. AH462111E Notice No. AH462111E -
Mortgage No. AK117102H Mortgage No. AG1186110R Mortgage No. AG869695N Notice No. AH462111E
PSP 1057.1. Parcel
Volume / Folio
1
8492 / 903
1
PS618610C
Allan Maxwell Williams & Glenda Joy Williams
2
8492 / 904
2
PS618611A
3
10355 / 953
3
LP63967
John Douglas McLeish & Lois Gillian McLeish Mattllew Pty Ltd
4
8492 / 906
4
LP63967
Hanna El-Khalil & Jannette El-Khalil
5
11152 / 077
2
LP134739
6
9662 / 160
1
LP134739
7
8041 / 535
1
TP419081A
Theodorus Johannes Wynen & Carrien Catharina Maria Wynen Antonio Lamatiina; Domenica Lamattina; Rocco Lamattina; Anthony Phillip Lamattina Roads Corporation
Mortgage No. AJ124239W Notice No. AH462111E Mortgage No. AE648474G Notice No. AH462111E Notice No. AH462111E
Caveat No. AH907888K Notice No. AH462111E
-
In relation to those Titles which list a Caveat or Covenant, we have not searched these individual instruments and accordingly, this assessment is prepared on the basis individual Certificates of Title do not incorporate encumbrances of an adverse effect upon value. The PSP’s include existing roadways for which title particulars could not be confirmed. In terms of the roadways, whilst the road increases the area within the PSP’s, adjacent properties abutting the roads have rights of access, therefore the roadways are considered as encumbered land.
CLYDE PSP’S DCP LAND ASSESSMENTS
PAGE 11
Our valuation is based on the assumption that the parcels are individually titled and that there are no easements or encumbrances which have an adverse effect on our valuation. Our assessment does not reflect the current ownership of the holdings and are assessed on the basis that each parcel is within an individual ownership.
Native Title. There are no attributes observed that would identify the property as having co-existing or likely co-existing Native Title interests. Refer to Assumptions / Qualifications - Native Title.
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2.
CLYDE PSP’S DCP LAND ASSESSMENTS
PLANNING CONSIDERATIONS.
Local Authority. City of Casey.
Land Use Zoning and Development Controls. Pursuant to the provisions of the Casey Planning Scheme, the land is included within an Urban Growth Zone (UGZ), Farming Zone (FZ), Urban Floodway Zone (UFZ), Special Use Zone (SUZ) and Public Use Zone (PUZ). We refer you to the annexed planning scheme ordinances for allowable uses and objectives of each zone. A current zoning map prepared by the Department of Planning and Community Development (DPCD) (not to scale) is as follows:
SOURCE - www.dse.vic.gov.au/planningschemes [2013]
CLYDE PSP’S DCP LAND ASSESSMENTS
PAGE 13
The parent holdings within the PSP’s area are further included within Land Subject to Inundation Overlay (LSIO), Heritage Overlay (HO) and Public Acquisition Overlay (PAO). A current overlay map prepared by the DPCD (not to scale) is as follows:
SOURCE - www.dse.vic.gov.au/planningschemes [2013]
Our valuation has been completed on the basis the area’s extent of encumbered land identified by the respective zoning and/or overlays have been identified within the land budget prepared by the MPA and there are no encumbrances identified within the zoning and/or overlay particulars which would impact upon the development potential of the subject holding or required extended holding periods due to planning or incur additional costs for development. Refer to Assumptions / Qualifications - Land Use Zoning and Development Controls.
Current Use. As at the date of our valuation, the subject land generally comprised vacant rural / residential land. The land is improved with dwellings, sheds and associated infrastructure.
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CLYDE PSP’S DCP LAND ASSESSMENTS
Potential / Future Uses. Pursuant to the Planning Scheme, the potential uses for the subject property may be summarised as those where a planning permit is not required (Section 1 of the Planning Scheme) and those where a planning permit is required (Section 2 of the Planning Scheme). Those uses noted under Section 3 (prohibited) are not considered to place any undue restriction upon the future use or development of the site. We refer you to the ordinances provided as an annexure to this report with respect to the allowable and prohibited uses. In undertaking our assessment of value of the subject parcels, we have had regard to the Future Urban Structure Plan, with the highest and best use of the individual unserviced parcels identified within the PSP’s and Urban Structure Plan and current social and economic conditions within the south-eastern growth area. The highest and best use of the individual holdings is summarised within the Scope of Development - Highest and Best Use section of this report.
CLYDE PSP’S DCP LAND ASSESSMENTS
3.
PAGE 15
LAND AND LOCALITY DESCRIPTION.
Site Description. The Clyde North PSP’s relate to three precincts encompassing a total of 100 holdings. The Clyde North PSP’s area is broadly bound to the north by Thompsons Road, Smiths Lane and Bells Road to the east, Ballarto Road to the south and Urban Growth zoned land to the west. A number of arterials dissect the precincts including Hardys Road, Tuckers Road and Pattersons Road. The land is generally level in contour. A number of properties are affected by overland transmission lines.
SOURCE - www.land.vic.gov.au [2013]
Locality and Surrounding Development. Within the Municipality of Casey, in the area known as Clyde North, Postcode 3978, the subject properties are located, approximately 50 kilometres south-east of the Melbourne Central Business District (CBD), as shown on the attached locality plan. Within the immediate surrounding area of Cranbourne East, there are a number of recently established residential developments including the Selandra Rise and Pasadena estates directly west of the Clyde North PSP’s. Cranbourne’s commercial centre is located around High Street including the Centro Cranbourne Shopping Centre, approximately 5 kilometres west.
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CLYDE PSP’S DCP LAND ASSESSMENTS
There are a number of primary and secondary educational facilities within an 8 kilometre radius of the subject property including St. Agatha’s Catholic College, Cranbourne Secondary College and Cranbourne Primary School. Furthermore, Cranbourne Christian College and Chisholm Institute of TAFE are located 4 kilometres west of the subject property. Recreational facilities in close proximity of the subject property include the Casey Fields Sports Complex, the Casey Indoor Sports Centre and Cranbourne Aquatic Leisure Centre. Transport facilities in close proximity include the Cranbourne railway station, whilst bus services operate along Berwick - Cranbourne Road and Clyde - Five Ways Road.
PSP 53 CRANBOURNE STATION
PSP 54
PSP 57.1
SOURCE - Google Maps.
Refer to Assumptions / Qualifications - Land Description and Site Identification.
CLYDE PSP’S DCP LAND ASSESSMENTS
PAGE 17
Road System and Access. The Clyde North PSP’s area is broadly bound to the north by Thompsons Road, Smiths Lane and Bells Road to the east, Ballarto Road to the south and Urban Growth zoned land to the west. A number of arterials dissect the precincts including Hardys Road, Tuckers Road and Pattersons Road. The major arterials connect with the Princes Freeway, which provides freeway access to and from the Melbourne CBD and inner south-eastern localities.
Services and Amenities. We have been provided with a Service Feasibility Report relating to the Thompsons Road and Clyde Creek PSP’s, prepared by ‘Beveridge Williams’ and dated January 2013. The report states: “The extension of all services can be achieved through known and proven techniques. The area is suitable for development as proposed and there is little concern about the ability for services to be constructed in a timely matter.” Furthermore, the report notes that the major issue in regards to servicing relates to the funding of such infrastructure. Our assessment has been provided on the basis that infrastructure (services) has been extended to each parcel in accordance with the Clyde North PSP’s. Costs associated with the augmentation of services to the individual parcels are not reflected within our assessment of value.
Environmental Statement. We have perused the Environment Protection Authority's (EPA’s) current Priority Sites Register and can confirm the subject site is not listed. Perusal of the current list of Issued Certificates and Statements of Environmental Audit discloses that the subject area is not listed and further more we note that the locality is not subject to an Environmental Audit Overlay. We have been provided with a Preliminary Environmental Contamination Assessment relating to the Clyde Creek and Thompsons Road PSP’s, prepared by ‘Beveridge Williams’ and dated 7 January 2013. The report concludes that the risk of extensive soil contamination across the two PSP’s is low, however there is likely to be areas of localised contamination close to contamination sources, such as the “former quarry, above and underground storage tanks, sheep dip, chemical storage, farm dumps, fill material, farm sheds and workshops”. Additionally, concentrations of heavy metals and contaminants were detected in a number of samples, indicating potential for further contamination. Furthermore, the north-east portion of the Thompsons Road PSP and areas along Clyde Creek have the potential for shallow groundwater. The report further recommends that Hydrogeological Investigation, a Statutory Environmental Audit and a further Contamination Assessment be undertaken. We have also been provided with a Preliminary Geotechnical Investigation and Desktop Study relating to the Thompsons Road and Clyde Creek PSP’s, prepared by ‘Site Geotechnical Pty Ltd’, dated 6 December 2012. The report acknowledges the former mining activities within the Thompsons Road PSP. The investigation at a preliminary level does not identify any apparent
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CLYDE PSP’S DCP LAND ASSESSMENTS
and significant geotechnical hazards, although recommends the use of buffers and revegetation around existing waterways to reduce erosion. The report recommends further geological assessment on a site specific basis. Additionally, we have been provided with a Preliminary Environmental Contamination Assessment relating to the Casey Fields South PSP, prepared by ‘Beveridge Williams’ and dated October 2012. The report concludes that the risk of significant contamination across the majority of the sites is low. However, there is a moderate risk of contamination across the 1395 Ballarto Road site due to its previous use as a chicken farm and recommends further investigation. In summary, a visual site inspection has not revealed any obvious signs of pollution or contamination, other than that identified in the abovementioned reports. Nevertheless, we are not experts in the detection or quantification of environmental problems and, accordingly, have not carried out a detailed environmental investigation. Therefore, this valuation and our report are made subject to there being no actual or potential contamination issues or environmental hazards including surface or sub-surface soil problems including instability, toxic or hazardous wastes or building material hazards issues affecting:
The existing or potential use of the property.
The value or marketability of the property.
The site.
Verification that the property is free from contamination or environmental hazards and has not been affected by pollutants of any kind may be obtained from a suitably qualified environmental expert. Should subsequent investigation show that the site is contaminated or has environmental hazards this valuation and report may require revision. The right is reserved to review, and if necessary, vary the valuation figure if any contamination or other environmental hazard is found to exist.
Archaeological Considerations. We have been provided with two Aboriginal Cultural Heritage Assessments, relating to the three PSP’s, prepared by ‘Archaeological & Heritage Management Solutions Pty Ltd’, dated October 2012. The assessment acknowledges a number of places within the PSP’s had previously been recorded on the Victorian Aboriginal Heritage Register (VAHR), comprising stone artefacts and scatters. Furthermore, the report identifies areas of sensitivity within the PSP’s and proposes recommendations on how these areas should be treated. Our assessment is on the basis that areas of cultural significance have been deducted from the developable area of the individual parcels by way of encumbered land uses within the Land Use Budget. Should this not be the case, then this report should be referred back to us for further comment and possible amendment.
Flora and Fauna Considerations. We have been provided with a Biodiversity Assessment for Area 1053, Thompsons Road Precinct Structure Plan, Clyde, prepared by ‘Ecology and Heritage Pty Ltd’, dated June 2012. The assessment concludes that remnant vegetation is contained within two Ecological Vegetation Classes (EVC’s) being the Plains Grassy Woodland and Swampy Riparian Woodland. There are 199 scattered trees of High and Low conservation significance. Eight significant fauna species have a low to moderate likelihood of occurrence in the area and Clyde Creek will be required to be retained as Growling Grass Frog habitat.
CLYDE PSP’S DCP LAND ASSESSMENTS
PAGE 19
Additionally, we have been provided with a Biodiversity Assessment for Area 1054 - ‘Clyde’, prepared by ‘Ecology Partners Pty Ltd’, dated June 2011. The assessment concludes that remnant vegetation is contained within six EVC’s, incorporating 1.89 habitat hectares apportioned as follows: - Swampy Woodland (0.09 habitat hectares) - Plains Grassy Woodland (0.16 habitat hectares) - Grassy Woodland (0.93 habitat hectares) - Sedge Wetland (0.66 habitat hectares) - Swampy Riparian Woodland (0.05 habitat hectares) - Swamp Shrub There are 31 scattered trees of High and Low conservation significance, whilst no nationally or state significant flora or fauna species were recorded within the precinct. However, there are previous records for the Growling Grass Frog in the precinct and accordingly a detailed Conservation Management Plan will be required. Furthermore, we have been provided with a draft Clyde Ecological Assessment relating to the Casey Fields South PSP, prepared by ‘AECOM Australia Pty Ltd’, dated 14 September 2012. The assessment identifies native vegetation within the Plains Grassy Woodland, Swamp Scrub Woodland, Healthy Woodland and Grassy Woodland EVC’s. There are no scattered trees identified nor any records of threatened flora and fauna although there is the presence of habitat suitable for the Growling Grass Frog. Our assessment is on the basis that all remnant vegetation or flora has been deducted from the developable area of the individual parcels by way of encumbered land uses within the Land Use Budget. Should this not be the case or any problem be known or arise, the matter should be referred back to us for further comment and possible amendment.
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4.
CLYDE PSP’S DCP LAND ASSESSMENTS
SCOPE OF THE DEVELOPMENT.
Precinct Structure Plans (PSP’s). The Clyde PSP’s area comprises of three PSP’s identified as:
PSP 1053 - Thompsons Road.
PSP 1054 - Clyde Creek.
PSP 1057.1 - Casey Fields South.
The three PSP’s relate to a total of 100 holdings providing a total gross area of 1,889.44 hectares. The Clyde PSP’s area is broadly bound to the north by Thompsons Road, Smiths Lane and Bells Road to the east, Ballarto Road to the south and Urban Growth zoned land to the west. A number of arterials dissect the precincts including Hardys Road, Tuckers Road and Pattersons Road. A breakdown of the parent areas in accordance with the proposed PSP’s as follows:
PSP No. 1053 1054 1057.1 Total
No. of Properties
Parent Area (Hectares)
34 59 7 100
676.33 1,103.94 109.17 1,889.44
The PSP’s area has been identified primarily for residential and part employment development, together with a town centre and Government education facilities. An extract of the Draft Future Urban Structure Plan (not to scale) is shown below:
CLYDE PSP’S DCP LAND ASSESSMENTS
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SOURCE - Metropolitan Planning Authority
The three PSP’s are briefly described as follows: PSP 53 Thompsons Road. PSP 53 Thompsons Road encompasses a total parent area of 676.33 hectares plus an additional 18.297 hectares of road reserves, generally bound by Thompsons Road to the north, Hardys Road to the south, Berwick-Cranbourne Road to the west and Smiths Lane to the east. The PSP area comprises of 34 individual properties predominantly included within an Urban Growth Zone, although several of the parcels are within a Special Use Zone subject to Schedule 1 - Earth and Energy Resources Industry, being a former quarry. A buffer exists around the Special Use Zone which is zoned Farming. It is our understanding that this quarry is no longer in use and therefore we have assessed value pursuant to the Future Urban Structure Plan as future residential development land. In accordance with the land budget, prepared by MPA, received 22 January 2014, an area of 111.10 hectares within the PSP has been identified as future employment zones, with a total industrial zone of 41.50 hectares affecting property No’s 1 and 2. The commercial zone appears to pertain to property No’s 5, 6, 15, 16, 18, 19, 20 and 21 and provides for a total area of 69.60 hectares. Whilst we have not been provided with the specific commercial areas per property, we are of the view that the value of commercial land is directly influenced by established residential catchment areas and therefore, on this basis, we have adopted an underlying residential land value rate for the land identified as future commercial zone.
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CLYDE PSP’S DCP LAND ASSESSMENTS
In accordance with the land budget and correspondence recived from the MPA, dated 19 February 2014, the Thompsons Road PSP encompasses 100.07 hectares of encumbered land, which we have accordingly deducted from the developable area of the affected properties. At the time of our inspection, the individual holdings within the PSP area were utilised for rural residential purposes. Current conventional development is situated west of the PSP area. PSP 54 - Clyde Creek. PSP 54 Clyde Creek encompasses a total parent area of 1,103.94 hectares plus an additional 43.543 hectares of road reserves / rail corridors, generally bound by Hardys Road to the north, Ballarto Road to the south, Berwick-Cranbourne Road to the west and Urban Growth zoned land to the east. Whilst the land budget identifies 61 properties, we have been advised that properties 60 and 61 fall outside the PSP area and therefore do not form part of our assessment. Accordingly, the PSP area comprises 59 individual properties predominantly included within an Urban Growth Zone. Several holdings within the PSP area are included as part Farming Zone land. In accordance with the land budget and correspondence received from the MPA, the Clyde Creek PSP encompasses 90.26 hectares of encumbered land, which we have accordingly deducted from the developable area of the affected properties. At the time of our inspection, the individual holdings within the PSP area were utilised for rural residential purposes. Current conventional development is situated west of the PSP area. PSP 57.1. PSP 57.1 encompasses a total parent area of 109.17 hectares plus an additional 0.891 hectares of rail corridor, generally bound by Ballarto Road to the south, Clyde-Five Ways Road to the east, Casey Fields to the north and land included within the Cranbourne East PSP to the west. The PSP area comprises 7 individual properties included within an Urban Growth Zone. In accordance with the land budget and correspondence received from the MPA, the Casey Fields South PSP encompasses 4.60 hectares of encumbered land, which we have accordingly deducted from the developable area of the affected properties. At the time of our inspection, the individual holdings within the PSP area were predominantly vacant and utilised for rural residential purposes. Current conventional development is situated immediately to the north and west of the PSP area. Summary. In accordance with the land budget, prepared by the Metropolitan Planning Authority (MPA) received 22 January 2014 and correspondence received from the MPA, dated 19 February 2014, we have deducted encumbered land associated with the power / gas easement, waterway corridor / wetland / retarding basin, desalination pipe easement, heritage protection zones and conservation areas to indicate a developable area totalling 1,694.50 hectares.
CLYDE PSP’S DCP LAND ASSESSMENTS
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A summary of the total areas within the precincts and developable land area adopted within our valuation is noted as follows:
Area (Hectares) PSP No. 1053 1054 1057.1 Total
Parent
Residential/ Commercial
Employment
676.33 1,103.94 109.17 1,889.44
534.76 1,013.67 104.57 1,653.00
41.50 41.50
Gross Developable 576.26 1,013.67 104.57 1,694.50
Improvements. Each holding is assessed having regard to the proposed zoning and the notional highest and best use per the PSP’s Urban Structure Plan. This report relates to the assessment of the parent holdings within the precincts for the implementation of a DCP. Therefore, the values assessed relate to the underlying land values. Accordingly, the improvements have been excluded from the assessments.
Highest and Best Use. In accordance with the Future Urban Structure Plan prepared by the MPA, the parent holdings are proposed to yield primarily residential development (conventional density) and will also provide for employment uses, a local town centre and passive open space. Therefore, in assessing value, we have had considered the highest and best use of the parent holdings as inglobo residential or employment use development land.
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5.
CLYDE PSP’S DCP LAND ASSESSMENTS
MARKET CONSIDERATIONS.
Market Commentary. International Economic Outlook. Global Growth Conditions. Global economic prospects continue to stabilise with continued proactive support from central banks. Global growth has benefited more recently from an improvement and expansion in industrial growth from advanced economies, which signals an emergence of rebalancing in global growth. Emerging markets remain the main driver of global growth, with advanced economic growth largely underpinned by generous monetary policy.
The latest global growth forecasts from the International Monetary Fund (IMF) - April 2013 anticipated growth will improve through 2013, however this upturn is likely to be more gradual than previously assessed (January 2013).
The global economy is forecast to grow +3.3% through 2013, driven mainly by emerging economies. Structural impediments constraining growth in developed nations remain (+1.2% growth forecast through 2013), while developing nations are anticipated to grow by +5.3%.
Eurozone.
The Eurozone experienced growth in the June quarter for the first time in nearly two years.
Growth was largely lead by the traditional generators of Eurozone growth (Germany and France), while downside risk remains in Italy and Spain have moderated from 2011 - 2012.
Economic conditions have improved, but continued stimulatory policy intervention will still be required for the foreseeable future with continued challenges from instituting policy in such a fragmented economic structure.
United States of America (USA).
Growth prospects remain positive with greater stability being reflected within improving property and labour markets (albeit marginally).
Major implications remain surrounding the continued discourse of the Federal Reserve monetary policy, with foreign capital reinvestment poised for its asset purchase programs eventual unwinding. Although not expected until at least 2015, initiation of a tapering program is anticipated prior to the end of 2013.
Asia.
China has stabilised in 2013 following softer conditions through 2012 due to fiscal investment programs, especially in infrastructure and real estate, and is expected to achieve its planned growth rate of +7.5%.
Japan has remained buoyant on the back of large scale fiscal and monetary policy expansions introduced to spur the economy.
CLYDE PSP’S DCP LAND ASSESSMENTS
PAGE 25
Australian Economic Outlook. Australian economic conditions remain benign, with growth remaining below trend for the June quarter (+0.5%). Both businesses and consumers remain cautious, although reduced political uncertainty is a positive to the economy. Growth is anticipated to remain below trend through the remainder of 2013 before lifting modestly in 2014. The Reserve Bank of Australia (RBA) left the cash rate unchanged at 2.5% in September following its 25 basis reduction in August and retains scope to move in the event of changed global economic policy circumstances.
Resource Economy.
The Australian economy is in transition with resource sector investment expenditure anticipated to peak by the end of 2013.
Although investment is diminishing, the industry will continue to contribute significantly to domestic GDP by an increase in exports as these assets become operational and move to the production phase.
In light of concentrated investment spending in recent times, the RBA must structure a balanced transition away from resource investment driven growth to more traditional drivers (such as consumption spending) to maintain stable growth following the end of the resource boom.
Non- Resource Sectors.
Lower interest rates and a softer Australian dollar are hoped to assist in facilitating this transition.
Household saving rates remain elevated (at approximately 10% of disposable income) as aversion towards high debt levels persists and labour market conditions and expectations remain uncertain.
Despite business confidence elevating recently, capital expenditure expectations within the non-mining sectors remains muted and will continue to limit a smooth transition away from resource led growth.
A lower Australian dollar will continue to assist dollar-sensitive export industries including manufacturing, education and tourism.
The current Australian dollar value is highly sensitive to current US federal policy, with observed volatility stemming from expectations of current policy unwinding as the future structure of the Federal Reserve Board.
Labour market conditions continue to soften modestly with the unemployment rate at 5.8% in August 2013 having increased from 5.3% 12 months prior.
Cash Rate Outlook.
Cash rate reductions take time to fully impact the real economy, with the RBA observing the continued impacts of the current easing policy stance (cash rate reduction of 225 basis points since late 2011).
Global events (such as China’s growth expectations and Federal Reserve monetary policy) will have a significant influence on the continued policy stance of the RBA, with some anticipating another 25 basis point reduction in 2013 (most likely the now almost traditional Cup Day reduction).
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Victorian Economic Outlook. Victoria’s economic conditions have been particularly impacted by the high Australian dollar, however its diversified and largely non-mining economic base will mitigate softer conditions following the end of resource boom.
Gross State Product (GSP) was +1.5% through FY2012 and is forecast to achieve GSP of +2.3% in FY2013 and +2.8 in FY2014.
The unemployment rate in August was recorded at 5.7%, having increased from 5.5% 12 months prior. The unemployment rate is anticipated to increase in the near term.
The Victorian State Government remains the only State anticipated to deliver a fiscal surplus through the current financial year, prioritising the strengthening and repairing of the state balance sheet in the short term.
This will be achieved through fiscal consolidation and a significant reduction in Government expenditure, limiting contributions to growth in the short term.
Residential Land Commentary. The following market commentary is derived from results of the National Land Survey Program (NLSP) which is undertaken by ResearchFour in conjunction with Charter Keck Cramer. The NLSP monitors over 700 active greenfield residential estates across Australia in major capital cities and reports upon market performance on a quarterly basis. Further detail about land markets at localised levels is available on a subscription basis. Please refer to http://www.charterkc.com.au/research/nlsp.aspx for further information.
Metropolitan Melbourne Greenfield Market Indicators. Lot Sales Activity
Lot Prices
1,600
$240
) 1,400 m c p ( 1,200 s le 1,000 a S t 800 o L e 600 g a r 400 e v A 200
) $220 0 0 '0 $ ( $200 e ic r P $180 t o L n $160 a i d e $140 M
0
Unsold Lots 5,500 4,500 g n a 3,500 h r e v O2,500 t o L 1,500
$120 07
08
09
10
11
12
13
500 07
08
Year
SOURCE - NLSP - ResearchFour, Charter Keck Cramer.
09
10 Year
11
12
13
07
08
09
10 11 Year
12
13
CLYDE PSP’S DCP LAND ASSESSMENTS
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Key findings about Melbourne’s greenfield residential land market in the September 2013 quarter include:
There was a significant increase in lot sales recorded for the September 2013 quarter from the historic low level achieved in the September 2012 quarter. An average of 927 lot sales per calendar month were achieved in the September 2013 quarter, which represents a +42% increase over the quarter and 155% higher than that observed one year ago.
The increase in (net) sales recorded during the last two quarters can be attributed primarily to the more stable housing market environment and further interest rate reductions occurring since late 2011.
Melbourne achieved 23% of the national greenfield sales activity over the September 2013 quarter. This result remains lower than the shares of 40% - 50% achieved through 2008 2010.
Melbourne’s median lot price (gross prices, excluding incentives / rebates) for the September 2013 quarter was $196,000, this was equivalent to the June 2013 quarter and has declined 6% since September 2012.
Average lot sizes have remained largely unchanged, recording a median lot size of 448 sq.m., having plateaued since March 2011.
Stock overhang as at the end of the September 2013 quarter increased (+2%) from the previous quarter and remains near historic high observed through 2012. Current overhang is nearly 4.5 times the level seen in the 2009 - 2010 peak conditions.
At the end of September 2013 there were enough lots on the market to satisfy the equivalent of five months of prevailing demand. This has declined from the peak overhang in September 2012 but increased significantly from 1 to 2 months through 2009 - 2010. A market with more than six months of trading stock can be considered imbalanced, which will generally place downward pressure on prices.
Melbourne’s South-Eastern Growth Region. The South-Eastern Region includes the Urban Growth Areas within the cities of Casey and Cardinia. Lot Sales Activity
Lot Prices
450 ) 400 m c 350 p ( s300 e l a250 S t o200 L e150 g a r 100 e v A 50
) 0 0 '0 $ ( e ic r P t o L n a i d e M
0
Unsold Lots
$240
1,800
$220
1,600 g 1,400 n a h r 1,200 e v O1,000 t o L 800
$200 $180 $160 $140
600
$120 07
08
09
10 11 Year
12
13
SOURCE - ResearchFour, Charter Keck Cramer.
400 07
08
09
10 11 Year
12
13
07
08
09
10 11 Year
12
13
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CLYDE PSP’S DCP LAND ASSESSMENTS
Key findings relating to the South-East Region in the September 2013 quarter:
There was an average of 320 lots sold per calendar month, a significant +46% increase compared to that observed in the June 2013 quarter. The September 2013 sales result represents a +150% increase in sales for the corresponding quarter in 2012.
September 2013 quarter sales activity equated to 34% of metropolitan sales, which was equivalent to the previous quarter.
The median lot price for the September quarter 2013 was $208,000, which represents an increase of +2% from the previous quarter but a decline of -1% from September 2012. The South-Eastern median price was at a +6% premium to the metropolitan Melbourne median ($196,000).
The median lot area of 453 sq.m. increased slightly (+1%) to the June 2013 observation and has remained relatively constant since mid 2011.
Stock overhang (1,195 lots) decreased significantly by -22% from the June quarter 2013 and was -24% lower than the corresponding period in 2012.
Changes to the Urban Growth Boundary (UGB). The Victorian Government has announced adjustments to the UGB to extend the long term supply of residential and commercial land to provide at least 25 years supply. The announcement also included the compulsory implementation of proposed State Infrastructure Contributions (SIC’s) for all growth areas. The policy provides for the use of SIC’s to manage the provision of infrastructure including:
Public Transport.
Environment (Net Gain).
Community Facilities.
Prior to the announcement, local Development Contribution Plans (DCP’s) incorporated categories including:
Recreational Infrastructure.
Road Infrastructure.
Community Development.
The SIC’s were proposed to be implemented within the growth areas. The SIC is in addition to DCP’s charged by Council. This proposed regime was replaced with the introduction of the Planning and Environment Amendment (Growth Areas Infrastructure Contribution) Act 2010. The Act was assented 1 June 2010 with the Growth Areas Infrastructure Contribution (GAIC) applying to land greater than 10 hectares brought into the UGB after the 2009 investigation and charged at $95,000 per hectare, whilst land brought into the UGB at November 2005 will be charged at $80,000 per hectare. Land which was inside the UGB prior to November 2005 will be exempt from the GAIC. As the property was included within the UGB after 2009, the parent holdings within the precinct will incur a GAIC liability commencing at $95,000 per hectare. Our valuation reflects the GAIC will be paid at development by the land owner.
CLYDE PSP’S DCP LAND ASSESSMENTS
PAGE 29
Comparative Sales Evidence - Residential Development Land. In assessing value, we have had due regard to the evidence of comparable sales occurring within the immediate and comparable growth areas. Sales of inglobo residential development land and land identified for future residential development within growth corridors are as follows:
Area (Hectares)
Sale Price / Date
Indicated Rate (Per Hectare)
1.67
$1,200,000 June 2013
$718,563
1970 South Gippsland Highway Devon Meadows
.91
$588,000 June 2013
$646,154
Sneydes Road Werribee South
104
$103,850,000 (T) May 2013
$998,557(T) $750,000 (CE)
870 Taylors Road Plumpton
10
$7,540,000 April 2013
$754,000
38.45 (N)
$19,000,000 September 2012
$570,000
2.675
$4,480,000 July 2012
$1,674.766
6.21
$8,950,000 April 2012
$1,441,224
65 Hardys Road Clyde North
14.62
$10,250,000 (T) $9,200,000 (CE) (Unconfirmed) January 2012
$701,095 (T) $629,275 (CE)
211 Grices Road Clyde North
43.85
$40,500,000 (T) $27,150,000 (CE) October 2011
$923,605 (T) $619,155 (CE)
1525 Pound Road Clyde North
48.42
$21,500,000 (T) $18,250,000 (CE) Early 2011
$444,030 (T) $380,585 (CE)
Address 1 Heather Grove Cranbourne East
1555 South Gippsland Highway Cranbourne East Lot C on PS709363L Henry Road Officer 108-128 Soldiers Road Berwick
(T) Terms
(CE) Cash Equivalent
(N) Net Developable Area
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Comparative Sales Evidence - Industrial Development Land. In assessing value, we have had due regard to the evidence of comparable sales occurring within the south-eastern growth area. There has been a dearth of sales of inglobo employment development land and land identified for future employment development within the south-eastern growth corridor, and therefore we have also had regard to the western and northern growth corridors as follows:
Area (Hectares)
Sale Price / Date
Indicated Rate (Per Hectare)
297-303 Palmers Road Truganina
30.76
$7,740,000 March 2013
$250,325
410 Cooper Street Epping
32.09
$5,500,000 July 2012
$171,393
687 Hopkins Road Truganina
82.03
$25,000,000 (T) $21,400,000 (CE) September 2011
$304,766 (T) $260,880 (CE)
275 O’Herns Road Epping
62.24 (G) 40.00 (N)
$10,000,000 July 2011
$160,670 (G) $250,000 (N)
21.80
$13,000,000 April 2011
$516,330
Address
940 Thompsons Road Cranbourne West (T) Terms
(CE) Cash Equivalent
(N) Net Developable Area
(G) Gross Area
CLYDE PSP’S DCP LAND ASSESSMENTS
6.
PAGE 31
VALUATION RATIONALE.
Goods and Services Tax (GST) Implications. Transactions of commercial properties and development land are subject to GST from 1 July 2000, at an amount equivalent to one eleventh (1/11th) of the sale price, for which it is the responsibility of the vendor to remit same to the Government. Accordingly, the vendor / notional vendor can only pass on the GST through a specific condition in the sale contract. Most contracts now include a clause that requires the purchaser to pay any GST on the basis that the purchaser is a registered business and entitled to a full input tax credit. This results in GST being a cash flow issue for the vendor only. Our valuation is expressed exclusive of GST on this basis. This valuation is based on the assumptions relating to GST set out above. If any of these assumptions are found to be incorrect, or if the party on whose instructions this valuation is provided wishes our valuation to be based on different assumptions, this valuation should be referred back to the Certified Practising Valuer for comment and, in appropriate cases, amendment.
Valuation Methodology. In accordance with your instructions we have adopted the overall Broad Hectare Valuation Approach, which refers to an overall value per hectare applicable for all properties contained within the PSP’s. The average size of the properties contained with the PSP’s is adopted for the basis of the assessment.
Valuation - Broad Hectare. In arriving at our assessment of value, we have assessed the value of the individual parent holdings on the direct comparison approach, having regard to the sales of land released in the south-eastern growth corridor, market considerations and the associated positive and negative externalities. Accordingly, we have adopted value rates derived by the interpolation of determined rates to apply to the gross developable area of the parent holdings. In accordance with your specific instruction, we have expressed the value assessed as a value rate per hectare in accordance with the proposed uses. Subject to the assumptions and qualifications within this report, the average overall broad hectare value expressed as a rate per hectare [exclusive of Goods and Service Tax (GST)] for each proposed use is as follows:
Proposed Use Residential Industrial
Total Developable Area (Hectares)
Total Assessed Value
Indicative Average Rate (Per Hectare)
Rounded Average Value Rate (Per Hectare)
1,653.00 41.50
$926,760,000 $ 10,450,000
$560,651 $251,807
$560,000 $250,000
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7.
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VALUATION AND VALUATION COMPLIANCE STATEMENT.
Valuation. Subject to the assumptions and qualifications contained within this report, we have expressed a calculated average overall broad hectare value rate (exclusive of GST) according to the proposed use as follows:
Proposed Use
Rounded Average Value Rate (Per Hectare)
Residential Industrial
$560,000 $250,000
Valuation Compliance Statement. Charter Keck Cramer confirms:
The statements of fact presented in the report are correct to the best of Valuer’s knowledge.
The analyses and conclusions are limited only by the reported assumptions and conditions.
The Valuer has no interest in the subject property.
The Valuer’s fee is not contingent upon any aspect of the report.
The valuation was performed in accordance with an ethical code and performance standards.
The Valuer has satisfied professional education requirements.
The Valuer has experience in the location and category of the property being valued.
The Valuer has made a personal inspection of the property.
No-one, except those specified in this report, has provided professional assistance in preparing the report.
We confirm that neither Charter Keck Cramer nor any of its Directors or employees has any pecuniary interest that could conflict with the proper valuation of this property. Refer to Assumptions / Qualifications - Third Party Disclaimer.
CLYDE PSP’S DCP LAND ASSESSMENTS
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The counter signatory has reviewed the valuation based on the data presented in the report for the accuracy of calculations, the reasonableness of data, the appropriateness of methodology, and compliance with client guidelines, regulatory requirements and professional standards. The counter signatory is satisfied that the valuation is based on reasonable grounds. The data presented has not been independently confirmed and the property has not been inspected by the counter signatory.
Prepared by Charter Keck Cramer
Thomas Brosnan, B.AppSc (Val), AAPI Certified Practising Valuer API Member No 63561 Telephone 03 8102 8806
Claudio Petrocco, B.Bus (Prop), AAPI Certified Practising Valuer API Member No 62402 Director Telephone 03 8102 8910
Date of Issue of the Valuation Report - 24 February 2014 Liability limited by a scheme approved under Professional Standards Legislation.
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8.
CLYDE PSP’S DCP LAND ASSESSMENTS
ASSUMPTIONS / QUALIFICATIONS. Legend. square metres hectares
sq.m. ha.
per annum per hectare
p.a. p.ha.
Terms of Reference. We note that this valuation is not for mortgage purposes. The assessment of the individual holding has been concluded from an external inspection and publicly available information relating to the development potential of each holding. Development potential details for each holding have not been provided. Therefore, should information relating to encumbrances and development potential of the individual holdings be made available, we reserve the right to reassess value in light of circumstances not previously known. Furthermore, this valuation has been undertaken on the basis and method as instructed by the MPA. Should the basis in which this valuation has been constructed or methodology change, we reserve the right to reassess this valuation accordingly. Any intending third party wishing to rely upon the contents of this valuation and its recommendations should note that in accordance with the provisions of our company’s professional indemnity insurance policy, they must, in written form, seek our approval in response to which we will consider the authorisation of this report for their use. Otherwise, no responsibility is accepted for any third party which may use or rely upon the whole or any part of the contents of this report. It should be noted that any subsequent amendments or changes in any form thereto will only be notified to and known by the parties to whom it is authorised.
Definition of Market Value. This valuation has been prepared in accordance with the following API definition of market value: “The estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.”
Date of Valuation. Due to possible changes in market forces and circumstances in relation to the subject property, this report can only be regarded as relevant as at the date of valuation. This valuation is current as at the date of valuation only. The value assessed herein may change significantly and unexpectedly over a relatively short period (including as a result of general market movements or factors specific to the particular property). We do not accept liability for losses arising from such subsequent changes in value. We draw attention to the provisions of our Professional Indemnity Insurance, that all valuations are only valid for 90 days from the date of valuation, no responsibility being accepted for clients' reliance upon reports beyond that period. Accordingly, any parties authorised to rely upon our opinion are advised that since the date of valuation the subject property has not been re-inspected and that no further investigation or analysis has been undertaken as to any changes since that date. Our assessment is subject to there being no significant event that has occurred between the date of valuation and the date of issue of the valuation report that would impact on the value of the subject property.
Third Party Disclaimer. This valuation is for the use only of the party to whom it is addressed and for no other purpose. No responsibility is accepted for any third party who may use or rely on the whole or any part of the content of this valuation. No responsibility will be accepted for photocopied signatures. It should be noted that any subsequent amendments or changes in any form to the valuation and report would only be notified to and known by the parties to whom it is addressed. This report is a valuation report and is not intended as a structural survey. Charter Keck Cramer prohibit publication of this report in whole or in part, or any reference thereto, or to the valuation assessment(s) contained herein, or to the names and professional affiliation of the Valuers, without the written approval of the Valuer.
Encumbrances. Our valuation is subject to there being no undisclosed or unregistered easements or encumbrances which would have an adverse effect on our valuation other than those previously described and noted on the Certificate of Title attached as an annexure at the rear of this report. Should it be discovered that further easements or encumbrances exist, this report should be referred back to Charter Keck Cramer for consideration, comment and amendment (if necessary).
CLYDE PSP’S DCP LAND ASSESSMENTS
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Native Title. Pursuant to the Native Title Act (Clth) 1993, and as amended 30 September 1998, land with the exception of an “Exclusive Possession Grant”, may be claimed as the property of Indigenous Australians leading to the co-existence or likely co-existence of Native Title in relation to a particular piece of land, subject to the verification of a prior or continuing connection to the land. We are not experts in Native Title or the property rights derived therefrom and have not been supplied with appropriate anthropological, ethnoecological and/or ethnographic advice. Therefore, the property valuation or assessment is made subject to there being no actual or potential Native Title affecting:
The value or marketability of the property.
The land.
The National Native Title Register (NNTR) was established under Section 192 of the Native Title Act (Clth) 1993. The NNTR contains determinations of Native Title made by the High Court of Australia, the Federal Court of Australia, or such similarly recognised bodies. Formal verification that the property is not subject to co-existing Native Title interests and/or subject to determination should be obtained by searching the Registry of Native Titles Claims, which is administered by the National Native Titles Tribunal. We have viewed maps prepared by the National Native Title Tribunal detailing Native Title Applications, determination areas and indigenous land use agreements. The map does not identify that the subject property is affected by applications and determinations as per the Federal Court on 31 March 2010. This assessment is completed on the basis that the property is not affected by co-existing Native Title interests. Should subsequent investigation show that the land is subject to existing or potential co-existing Native Title interests, this property valuation or assessment will require revision and should be referred back to Charter Keck Cramer for consideration, comment and amendment.
Land Use Zoning and Development Controls. Although a Planning Certificate has not been sighted, the zoning particulars have been confirmed by the online Planning Scheme, which is an internet based copy of the Planning Scheme provided by the Department of Planning and Community Development (DPCD). Our assessment is completed subject to the planning information obtained being current and correct. Please note that a Planning Certificate has not been provided or obtained. In the event that a Planning Certificate is obtained and the information thereon is materially different to that provided to Charter Keck Cramer via the approved internet based version, then we reserve the right to review our assessment and amend this report (as necessary).
Land Description and Site Identification. A current survey has not been sighted. This valuation is subject to there being no encroachments by or upon the property and this should be confirmed by a current survey and/or advice from a Registered Surveyor. If any encroachments are noted by the survey report, the Valuer should be consulted to reassess any effect on the value stated herein.
PLAN STRATEGIC RESEARCH URBAN ECONOMICS & POLICY CREATE DEVELOPMENT & PROJECT MANAGEMENT LAND SURVEYING CIVIL ENGINEERING QUANTITY SURVEYING ENHANCE VALUATIONS CORPORATE REAL ESTATE PRIVATE EQUITY ACCOMMODATION SOLUTIONS GROUP
Level 19/8 Exhibition Street Melbourne Victoria 3000 Telephone 03 8102 8888 Facsimile 03 8102 8844
[email protected] www.charterkc.com.au
PLAN.CREATE.ENHANCE.