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CROWN VALUATION SERVICES

FINAL REPORT

VALUING YEAR 2017

CITY OF GREATER WOLLONGONG

WOLLONGONG CONTRACT

23rd November 2017

Version: Version 2

Report Prepared For: Property NSW.

Report Prepared By: Crown Valuation Service Pty Ltd.

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LOCAL GOVERNMENT AREA OF WOLLONGONG FINAL REPORT

NOVEMBER 2017

EXECUTIVE SUMMARY

City of Wollongong Local Government Area:

The Wollongong City Council area is located on the coast of New South Wales, approximately 80 kilometres to

the south of the Sydney Central Business District in the Illawarra Region of New South Wales. Wollongong City

Council has a land area of approximately 684 square kilometres that comprises a narrow strip of coastal plain,

bounded by the Illawarra escarpment to the west and the Pacific Ocean to the east. The Local Government Area

(LGA) is adjoined by three other LGAs - Sutherland Shire Council to the north, Shellharbour City Council to the

south and Wollondilly, Wingecarribee and Campbelltown Council’s to the west.

The local government area comprises residential, commercial, industrial, infrastructure, environmental, rural and public & private recreation zones. There were 68,660 properties valued at the valuing year of 1 July 2017, and valuations are reflective of the property market at that time. There was a strong increase in land values in most sectors of the market in the Wollongong local government

area between 2016 and 2017. A strong increase in values was seen in the Residential, Commercial zones, with

the exception being Industrial zoned lands which showed a slight increase in land values.

Over recent years Wollongong has continued to show strong growth as the LGA is in the later stages of

transitioning from a mining and manufacturing driven economy to a service based economy. Wollongong LGA’s

close proximity to Sydney, with its appeal to commuters & location close to beaches, along with its’ housing

affordability in comparison to Sydney, make it a sought after location for purchasers.

General overview

There has been a strong increase in land values in most sectors of the market in the Wollongong Local

Government Area (LGA) between 2016 and 2017. Strong increases in values were seen in the Residential,

Commercial and Rural markets, with the exception being Industrial zoned lands which showed a slight increase

in land values.

The strong increase in land values in the LGA has occurred across all locations and is largely driven by strong

ongoing buyer demand due to the regions relative affordability compared to Sydney and its’ proximity to Sydney.

Residential overview

Wollongong residential zoned land has shown a strong increase in land values from 2016 to 2017, whilst the

increase was consistent across most locations and zones, Port Kembla showed a very strong increase in values

and the R5 Large Lot zoned land showed only a slight increase in values. The ongoing demand for residential

property is reflected in high auction clearance rates and increased activity in the construction of residential units.

Commercial overview

Between 2016 and 2017 there was a strong increase to commercial land values in the Wollongong LGA. The

strongest increases in commercial land values occurred in those zones capable of mixed use development. The

ongoing demand for mixed use sites is being driven by the strength of the residential unit market.

The exception was for the B7 zoned lands. This small group of seven properties 6 of which are located at

Coniston showed a moderate decrease in value. This reflects that the B7 zoning only allows office and light

industrial uses (no residential use) and the inferior location of the properties for commercial activity.

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Industrial overview

A slight increase in industrial land values occurred from 2016 to 2017, with steady demand for the region’s

industrial zoned properties. As Wollongong transitions from its’ traditional manufacturing base, demand for

heavy industrial sites has weakened, whilst there remains steady demand by owner occupiers for light industrial

properties.

Rural overview

The Rural market includes a diverse range of uses including coal mines, restricted use lands (with no

development rights) and residential uses. However, the principal use within this market sector is for residential

purposes and as such this sector has shown a strong increase, mirroring the residential market.

Rural Landscape zoned lands comprise a diverse range of properties with varying, sizes and feature, the slight

overall increase is attributable to the number of larger properties (greater than 10 hectares) for which there is a

limited market.

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Table of Contents

LGA Overview ............................................................................................................................................ 6

State and Local Government Legislation: .................................................................................................. 8

Market Overview and Sales of Interest ................................................................................................... 10

Residential Market .............................................................................................................................. 10

Medium Density Residential Market .................................................................................................. 11

Retail & Commercial Market ............................................................................................................... 12

Industrial Market ................................................................................................................................. 12

Rural & Environment Market .............................................................................................................. 13

Significant Issues and Developments ...................................................................................................... 14

Significant Value changes ........................................................................................................................ 16

CVS Quality Assurance Measures ........................................................................................................ 17

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DISCLAIMER: Purpose of this Report DISCLAIMER: Purpose of this Report

The purpose of this report is to describe the process and considerations for the 1 July 2017 Valuation of

Wollongong LGA. The report has been produced on behalf of the Valuer-General.

The land values have been specifically made for rating and taxing purposes. Land values produced as part of this

process should not be used for any other purpose without the specific agreement of the Valuer-General.

Land values must have regard to specific requirements and assumptions in rating and taxing legislation.

Consequently these valuations may vary from market levels.

The land values have been determined using a methodology prescribed by the Rating and Taxing Valuation

Procedures Manual. The manual allows mass valuation methodologies that involve assessing large numbers of

properties as a group to be utilised where appropriate. Mass valuation methodologies are by their nature likely

to be less accurate than individually assessed valuations, however are utilised worldwide for rating and taxing

purposes to deliver valuations within an acceptable market range.

Town planning, land use and other market information contained in this report has been compiled based on

enquries undertaken during the valuation process. Third parties should make their own inquiries into these

details and should not rely on the contents of this report.

The Valuer-General disclaims any liability to any person who acts or omits to act on the basis of the information

contained in this report.

More information on the valuation process is available from the Property NSW website at

www.PNSW.nsw.gov.au/valuation

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LGA Overview Wollongong Local Government Area (LGA) at a glance:

Population 213,402 (2017 forecast .id)

Avg. Annual Growth 2011 -

2016

0.8%

Estimated Avg. Annual

Growth Rate 2016-2021

0.7%

Area 714 sq.km

Key Industry Sectors Health care and social assistance, Education and training, Retail trade

Main Urban Centres Helensburgh, Thirroul, Corrimal, Wollongong, Figtree, Unanderra, Warrawong,

Dapto

Geography

Wollongong is situated 80km south of the centre of Sydney. Its 714 square kilometre area is set on a

narrow strip of coastal plain, bounded by the Illawarra escarpment to the west and the Pacific Ocean

to the east. Because of its physical limits to the east and west, Wollongong is very much a linear city,

stretching in a thin, virtually unbroken urban line from Helensburgh in the north to the shores of Lake

Illawarra and Windang to the south. There are still some pockets of rural land in the West Dapto area,

which is fast being developed for residential use.

Another of the area’s most valuable natural assets is Port Kembla harbour. It is the deepest port on

the eastern seaboard, providing local and regional industry with excellent export links to the rest of

the world.

Demography

Wollongong has a substantial population base. It is the eleventh largest city in Australia and accounts

for nearly half (46.6%) of the entire population of the Illawarra Region. According to the Australian

Bureau of Statistics, the Wollongong Local Government Area (LGA) had an estimated resident

population of 213,402 (2017 forecast.id).

Projections by the NSW Department of Urban Affairs and Planning indicate that the population of the

Wollongong LGA will continue to grow at a modest but steady rate through to the year 2021. Medium

level projections suggest that by the year 2021 the region’s population will have reached 206,000

persons, approximately 5.5% growth on the current estimated population. Much of the population

growth is expected to be centred around new residential developments at West Dapto & Calderwood

in Wollongong’s south-west.

Economic Activity

Wollongong has an increasingly diversified economy. The local economy was historically built around a

strong mining industry and the largest integrated steel works in the Southern Hemisphere at Port

Kembla. However, cheaper overseas manufacturing costs and the downturn in coal markets have seen

a continuing reduction in local coal extraction and steel production, resulting in a decline in heavy

industry manufacturing within the Illawarra. Following the ongoing downsizing of the Steelworks and

the more recent restructuring of the area’s industrial base, the Illawarra has looked to growth of

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existing tertiary industries such as education, I.T. services, tourism and other service sectors to add

depth to the local economy.

Currently manufacturing industry accounts for a modest 4.5% of business locations in the Wollongong

LGA. Key manufacturing sectors in the region include basic metals, fabricated metals (Bluescope),

building products (Pioneer), textiles, and chemical products. Retail trade is another significant

contributor to the Wollongong economy and construction now makes up almost 20% of business in

the LGA.

Traditionally an Industrial & Commercial Centre

Wollongong is without doubt the industrial and commercial heart of the Illawarra Region. Bluescope

Steel Ltd, operates steelworks at Port Kembla with many related heavy industry companies operating

in the area. However as outlined above, the uncertainty of long term steel making operations at Port

Kembla has also had a flow on effect on to smaller local manufacturing companies. Underground coal

mining which has underpinned heavy industry in the region for almost a century, has followed world

trends and declined to the point where the LGA now only has three operational mines, Metropolitan

at Helensburgh, Dendrobium at Mount Kembla & Wongawilli at Wongawilli.

As a major regional centre, Wollongong offers many services and facilities. Retail trade contributes

significantly to the local economy with 5 department stores, over 60 supermarkets and grocery stores

and in excess of 1400 retail outlets across the LGA. Wollongong City Mall is the major retail centre

with larger shopping centres located at Warrawong, Figtree, Corrimal and Dapto.

The Port of Port Kembla

The port of Port Kembla provides an obvious competitive advantage for industry within the area. Port

Kembla is the only significant bulk port in southern NSW and is Australia’s largest vehicle import

facility. It also has the largest grain handling terminal on the East Coast and has the second largest coal

export facility in NSW. The Port services significant steel, iron ore and bulk product markets and is

recognised as a strategic centre for the broader Illawarra and NSW region.

Port Kembla is the largest motor vehicle import facility in NSW, with more than 420,000 cars and other

vehicles handled each year. The Port is also NSW’s largest grain handling facility and the second largest

coal export facility in NSW.

Land Use within the LGA

Of the undeveloped land the most significant use in Wollongong is for Environmental Conservation

purposes, specifically Catchment Protection, as the land west of the escarpment is within the

Metropolitan Water catchment area. The escarpment & adjacent foothills are generally zoned

Environmental Conservation (E2) or National Parks & Nature Reserves (E1). Of the developed areas of

the LGA, the greater percentage of land is used for residential purposes.

Sites developed for single dwelling purposes comprise approximately 95% of residential developed

sites. The thin coastal strip limits the availability of developable land to accommodate the region’s

growing population, growth that is largely driven by its proximity to Sydney and lifestyle opportunities.

Significant urban consolidation is already occurring within the Wollongong City Centre and this will

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ultimately need to intensify and expand into other commercial and transport centres within the

region.

Multi – dwelling sites, generally defined as three or more dwellings on a site, comprise most of the

remaining 5% of developed sites. Of those multi-dwelling sites most sites comprise low rise unit

developments. High rise development has traditionally been confined to the higher density zoned

sites around Wollongong’s Smith’s Hill and Cliff Road. However, in recent years there has been an

increase in the number of high rise developments either in progress or in the pipeline. Most of these

developments being for mixed use purposes i.e, usually a ground/first floor commercial component

with residential units above. These sites are located within business zonings which provide developers

with more favourable floor space ratios than residential zonings. The Wollongong City Centre LEP

gazetted in 2007, followed by Wollongong LEP 2009 has also provided more favourable floor space

ratios within the Central & Inner City area.

State and Local Government Legislation:

Following the State Government’s planning reforms which included the Standard Instrument (LEPs)

Order 2006 (Standard Instrument) introduced in 2006 requiring Local Councils to introduce

standardised planning instruments, Wollongong LEP 2009 was notified on 26 February, 2010.

This LEP is in accordance with the Standard Instrument & provides:

new zones and land uses;

development standards including lot sizes, building heights, floor space ratios and more; and

a suite of maps that deal with zones, building height, heritage items and heritage

conservation areas, floor space ratios and lot sizes.

Wollongong LEP 2009 repeals and replaces Wollongong City Centre Local Environmental Plan 2007,

Wollongong Local Environmental Plan 1990 and Illawarra Planning Scheme Ordinance. In addition,

Illawarra Regional Environmental Plan No 1 will not apply to the land to which Wollongong LEP 2009

applies. State Environmental Planning Policy No 71 – Coastal Protection does not apply to land within

the Wollongong City Centre. The major changes within the new LEP included revision of some building

height and floor space ratios and spot rezonings. The original 2009 LEP did not apply to land in West

Dapto which was covered by West Dapto LEP 2010, notified on 5 May 2010 (since repealed as an

Amendment to LEP 2009 in June 2014). Additionally, Wollongong Local Environmental Plan 1990 and

Wollongong Local Environmental Plan No. 38 continue to apply to certain lands which have been

“deferred” at Marshall Mount & parts of Huntley & Yallah.

The following plans regulate development through land use zones and development standards across

the LGA:

*Wollongong LEP 2009 - controls land use and development in Wollongong It includes a set of land

use zones and provides detailed requirements for development. The LEP also establishes what types of

development may be permitted on a particular parcel of land with the permission of Council.

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*Wollongong DCP 2009 - Wollongong’s consolidated Development Control Plan (DCP)

outlines planning controls for the city. This DCP sets out specific controls that apply to development

proposals & combines 89 separate plans in one document. The DCP applies to all development

proposals in Wollongong lodged from Wednesday, 3 March 2010.

*Wollongong Section 94A Development Contributions Plan - determines the requirement for a

development to pay a contribution pursuant to section 94A of the EP&A Act 1979 to assist council to

provide the appropriate public facilities which are required to maintain and enhance amenity and

service delivery within the City. This Plan applies to all land within Wollongong local government area

excluding Stages 1 and 2 of West Dapto Urban Release Area.

*West Dapto Release Area Section 94A Development Contributions Plan - determines the

requirement for a development to pay a contribution pursuant to section 94 of the EP&A Act 1979

towards the provision, extension or augmentation of public amenities and public services that will, or

are likely to be required as a consequence of development in the West Dapto Release Area. The West

Dapto Urban Release Area Stages 1 and 2.

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Market Overview and Sales of Interest

Residential Market

As outlined earlier, due to its’ physical limits to the east and west, Wollongong is very much a linear

LGA, stretching in a thin, virtually unbroken urban line from Helensburgh in the north to the shores of

Lake Illawarra and Windang to the south. Most residential development is centred around the LGA’s

main urban centres being: Helensburgh, Thirroul, Corrimal, Wollongong, Figtree, Unanderra,

Warrawong and Dapto. It is noted that the suburbs along the coast in the north between Thirroul and

Helensburgh so favoured by commuters, have become almost dormitory suburbs of Sydney.

There are approximately 62,350 entries within the five residential land use zones. The aggregate land

value for these properties has increased from $22,270,064,540 at the prior Valuing year/Annual

Valuation 2016 to $26,820,667,920 in 2017. These figures indicate a total increase in aggregate land

value of 20.43%.

Wollongong LGA is an established area of predominantly single dwelling homes with high density

development located in medium and small pockets close to the CBD. There is very little undeveloped

land remaining in most of the older established suburbs, therefore it is demolitions & infill

development that provide most of the supply of residential land for new buildings in these areas. The

greatest supply of developed vacant land is within the West Dapto area, with smaller estates scattered

mainly across Wollongong’s southern suburbs.

The LGA’s close proximity to Sydney is historically a market driver, with its appeal to commuters &

location close to the beach. In the past, the regions ongoing tough labour market conditions & local

economic uncertainty, tempered price growth particularly in Wollongong’s southern suburbs.

However, as the Illawarra continues the transition from a largely manufacturing based economy to a

more service and knowledge based economy, the short term peaks and troughs of the local housing

market have stabilised. Wollongong’s close proximity to the south western Sydney growth area, the

new M9 Orbital & the proposed Badgery’s Creek Airport, are also emerging as additional drivers to a

robust residential market.

In the twelve months between valuing years 2016 & 2017, the volume of property sales has decreased

by around 13% as residential demand remains strong. Agents report the ongoing fast turnover of

properties & low levels of stock to sell, this coupled with record low interest rates has provided a

buoyant market as part of a ripple effect from the Sydney property boom.

Overall, 2017 has seen continued market increases across Wollongong LGA with CoreLogic reporting

that Wollongong LGA had the highest capital growth for residential dwellings of any Australian city

with 16% annual growth over the 2016 – 2017 financial year. Whilst most of the continuing significant

prices rises across Wollongong LGA were for properties affordable for first home buyers and low end

investment property, the higher end of the market, particularly properties over the $1million mark has

also shown strong growth.

The amount of vacant land on the market continues to decline across the Wollongong LGA. Currently,

lands within the Calderwood, Tallawarra & West Dapto area offer the only remaining residential

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greenfield sites in the LGA. Currently, the recent Vista Park Estate at Wongawilli & Lynden View Estate

at Kembla Grange, in addition to the final stages of Brooks Reach Estate at Horsley account for the

bulk of vacant land sales within the West Dapto area. A large proportion of these sales are house and

land packages, attracting mainly first and second homebuyers.

In the northern suburbs of Wollongong there are almost no englobo lands left for future development.

With the last of such sites being the Bulli Brickworks site nearing completion with most properties now

sold. However, as outlined later in this report there is a recent proposal to rezone 11 hectares of the

Corrimal Cokeworks site for residential purposes. Once again as in the southern suburbs, limited sales

and resales of vacant residential sites in the northern suburbs have shown large price increases.

Medium Density Residential Market

Within the Wollongong LGA larger medium density development has been chiefly close to the CBD,

especially within the Smith’s Hill & North Wollongong areas. Most suburban locations support the

development of small, low rise strata complexes and villa sites, which are easier to market and

develop. This class of property is more akin to the single residential market than unit sites.

Wollongong LEP 2009 increased the areas where medium density is permitted through the

introduction of R3 zones. However, unless lot size is sufficient for immediate redevelopment there has

been little or no increases in value of smaller sites. The R3 Medium Density Residential zone is

intended for land where a variety of medium density accommodation is to be established or

maintained, particularly close to transport hubs. Other residential uses (including typically higher or

lower density uses) could also be permitted in the zone where appropriate. A variety of residential

uses have been mandated to encourage housing choice and diversity in this zone.

Following a long period of stalled medium density construction in the Wollongong CBD, there has

been an increasing number of new unit developments being offered for sale. 2017 has seen the

marketing or construction of a number of large mixed use complexes in the Wollongong CBD including

Parq on Flinders Street (221 residential units), Signature on Regent Street (125 residential units) and

Crown Wollongong (317 residential units) among others. Wollongong CBD has had a large influx of

unit supply in the past four years, with concerns that any shift in the property market could severely

impact these projects with off-the-plan sales stalling and settlement risk increasing.

Increased sale prices for existing townhouses and villas are evident throughout the suburbs with little

new stock being constructed or available for sale. Most suburban unit development is smaller scale &

undertaken by local developers, with an emerging trend to selling off the plan. The limited number of

sales of development sites in the suburbs, show ongoing strong market growth. Due to the lack of

development sites and the growing demand for units, townhouses & villas, particularly in the northern

suburbs, it is expected that this sector of the market will remain strong.

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Retail & Commercial Market

The Wollongong Local Government Area comprises approximately 2,300 commercial zoned properties

predominantly located in Wollongong CBD as well as being spread throughout the suburbs from

Helensburgh to Yallah.

The Wollongong Local Government Area commercial market had approximately 102 sales throughout

2017 Valuing Year with 68 of these sales being market sales. The sales indicate a relatively strong

commercial market through both the CBD and suburban locations. There was a good volume of sales

through the Northern Suburbs, from Fairy Meadow through to Helensburgh, showing good growth in

land values. The Southern suburbs also showed a steady volume of sales and increases in land values,

but not at the same levels as the north. The strongest growth has been for property zoned B6, due to

the mixed use development potential.

The rejuvenation of Wollongong CBD continues with a number of large mixed use developments now

complete and other new projects recently commencing construction. The increase in resident

population in the CBD has seen significant grown in food and beverage outlets such as cafes,

restaurants and small bars. The revival of retail within the CBD also continues with a new David Jones

recently opening, together with a number of large format retailers opening, new to the Illawarra

including H&M and TK Maxx.

The suburban commercial market continues to experience a steady turnover of stock in most

commercial centres, resulting in good increases in values across the board, spurred on by activity

within the CBD and fringe.

Notable transactions in the CBD and suburbs include:

88-90 Crown St, Wollongong – a six level commercial building sold fully leased to a number of

state and Federal government departments including Human Services and RMS and sold

$42.1m.

282-298 Lawrence Hargrave Dr Thirroul – a neighbourhood shopping centre and adjoining

vacant site sold for $10m.

191 Crown St, Wollongong – a three level retail property in the Mall sold fully leased for

$4.3m.

Industrial Market

The Wollongong Local Government Area comprises approximately 1,206 industrial zoned properties

predominantly located in Port Kembla, Kembla Grange and Unanderra, with secondary pockets of

industrial zoned land in Helensburgh, Bulli, Bellambi, Corrimal, Russell Vale, Fernhill, Fairy Meadow,

North Wollongong, Coniston, Cringila, Dapto and Yallah.

The industrial property market has experienced good growth over the past 12 months with strong

sales volumes, demonstrating continuing confidence over the past two years. Most sales have been to

owner occupiers in the $1 - $2 million range, however there are more investment transactions over

this price range. The demand for larger warehouse space from owner occupiers is increasing as the

greater Sydney industrial market becomes too expensive for many businesses.

The Wollongong Local Government Area industrial market had approximately 61 sales throughout

Valuing Year 2017 with 41 of these sales being market sales. The sales indicate a continuing strong

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industrial market in the traditional industrial locations of Port Kembla, Kembla Grange, Berkeley and

Unanderra with good sales through the secondary industrial pockets in Fernhill, Corrimal and Dapto.

The strongest growth has been for properties zoned IN2 and IN3 which are in the traditional industrial

locations.

Demand for light industrial units such as small bay warehouses and business park complexes is strong

with a number of new developments under construction in secondary industrial areas such as

Helensburgh, North Wollongong and Coniston.

Notable industrial transactions include:

185 Berkeley Rd Unanderra – a 1.562ha warehouse sold fully leased to three major tenants

and sold for $7.625m.

32-34 Doyle Ave Unanderra – a 1.905ha high clearance warehouse sold for $5.087m.

Rural & Environment Market

The Environmental and rural market includes a diverse range of uses including coal mines, escarpment

& catchment lands (with no development rights) and residential uses. However, the principal use

within this market sector is for residential purposes and as such this sector has shown strong growth,

mirroring the local residential market. There has been continued strong growth across most sectors of

the rural and environmental property market.

Between the 2016 & 2017 valuing years most Environmental zoned lands, continued to show steady

market movement with an overall increase in land values of 16.76%. The strongest sector of the

market has been the E3 zoned lands with speculative sales of vacant sites with no building rights

within Lady Carrington Estate at Helensburgh. These properties are part of the 7D lands under long

term review by Wollongong City Council. Most recently, sites are offered on the open market with

single lots selling for prices between $60,000 to $70,000 per lot.

With regard to Rural zoned land there have again been few sales. Generally, in the case of sites

greater than one hectare with a single building right, more restrictive Local & State government

environmental policies have seen purchasers paying similar amounts for larger homesites regardless

of size. Demand for larger sites (greater than 20 hectares) continues to be strong & properties are

tightly held with the last sale within this larger size range being in early 2016. As a result of the

ongoing decline in agriculture across the LGA, there are few properties now used for true rural

purposes.

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Significant Issues and Developments

Since 2014 Wollongong CBD has undergone significant transformation with many iconic sites such as

the Dwyer’s, Oxford Tavern & Flinders St Gateway sites being redeveloped for mixed residential and

commercial purposes. As outlined previously, this has created a large influx of residential units to the

marketplace, with many questioning whether the CBD is headed for an oversupply of units.

Despite such concerns, developers have continued to acquire sites and plan for future mixed

development purposes. It was reported in late 2016 that Wollongong had $238 million worth of

apartment and mixed-use buildings under assessment through the JRPP & if approved, these would

add 524 apartments to the already plentiful stock in the city.

Recent CBD development plans.

Plans lodged with Wollongong City Council in June 2017 proposed the demolition of the 1930s

red-brick corner-block known as “Langs Corner” at the eastern end of the Mall. Proposed is

an almost 50-metre tall commercial block with more than 12,000 square metres of space. On

the ground floor, eight retail premises would front the mall and Kembla Street, while levels 1-

10 would have “efficient” office space designed to suit “government agent tenancies”.

Continuing the upgrade to Wollongong Central, a further $93 million has been invested by GPT

in the refurbishment of the former “Crown Central” development. This section of Wollongong

Central until October 2016 housed the “Myer” Department store, the refurbished space is

now occupied by “David Jones“ & “TK Maxx”. As a result of their relocation the former David

Jones stand alone store in the Mall, is currently on the market & likely to be redeveloped.

Wollongong Council during 2017 unveiled a “future strategy” for the southern city area which

is bounded by the railway line, port, ocean and Stewart Street. The future South Wollongong

precinct could have taller buildings, a green pedestrian belt and would be focused around a

revitalised MacCabe Park. The strategy will focus on “best practice flood resilient design” in an

effort to overcome problems with frequent flooding and risks associated with sea-level rise.

The council has suggested low lying land between Beach and Swan Streets could be rezoned as

“environmental living” to stop future development from intensifying these flood risks.

In MacCabe Park – which links Wollongong’s CBD with South Wollongong – the council has

proposed to adjust its development controls to promote “an improved public domain

interface” and “create a mini central park”. Along the western side of the park, council hopes

to encourage more residential development in this rapidly changing area. This may be done by

rezoning land immediately fronting MacCabe Park (along Keira Street) to allow unit

buildings with commercial or retail premises at their lower levels. The council has also

proposed that building on either side of the park continue to be restricted to 24 metres

(roughly seven or eight storeys) to “promote a sense of enclosure”.

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Current developments or proposals outside the CBD include:

In April, the new Quattro grain terminal was opened at Port Kembla. The terminal was opened

after three years of construction and planning by both Quattro Ports and NSW Ports. The Quattro

component of the development included the construction of new bulk grain storage with 19

vertical silos and associated infrastructure. The NSW Ports component of the development

included the extension of Berth 103 to handle vessels of up to 225 metres in length and the

dredging of approximately 120,000 cubic metres to increase berth depth to 14.5m

At Corrimal the derelict former hardware building on the corner of Underwood and Russell Streets remains the subject of a development application for “The Verge” - a four storey development with a ground floor Aldi supermarket, 122 place childcare centre and 49 residential units with 15 apartments set aside exclusively for purchase by first home buyers.

In addition to this at Corrimal, a rezoning proposal to make way for around 700 homes on the old

Cokeworks site has been lodged with Wollongong City Council.

The Illawarra Coke Company (ICC) in October lodged a planning proposal for the 18 hectare site,

which has been vacant since the cokeworks ceased production in 2014. According to developers,

their concept plan would “provide a range of low-rise housing types to deliver affordable and

sustainable housing” which will include apartment buildings up to six storeys high, as well as

townhouses and detached homes. Redevelopment of the property would also include shops,

childcare and cafés

Under the proposal, 11 hectares of the old cokeworks site would become medium density

residential land, while about 39 per cent of the site would be dedicated to green space. This

would include public parks and conservation land, as well as new pedestrian and cycle paths.

During 2017 the 1.3 km West Dapto road link progressed and is now under construction. The circa

$90 million project is anticipated to open in 2020. This project will provide a vital connection from

suburbs of West Dapto to Dapto Town Centre, the Princes Highway and the M1, and will

be completed in stages. Stage 1A of the Fowlers Rd to Fairwater Drive link has been completed.

Work on Stage 1B is ongoing. Stages 1C and 1D are expected to start in early 2018. Work on Stage

2 is expected to start in mid-2018.

LOCAL



NOVEMBER 2017

Significant Value changes The most significant changes have been in values of amalgamated development sites as the strongest sector of the local market has been for redevelopment sites. The instances where amalgamated sites obtain a greater scope of development than individual sites could previously achieve have correspondingly shown the greatest increase in value. Other potential reasons for significant increases include;

Strengthening demand for residential / mixed use development land .

Sites where approval has been achieved for development of a scale which is greater than could be assumed when undertaking a valuation under the Valuation of Land Act considering the existing planning.

Property NSW has been kept informed of such changes to values during regular DV and Contract Managers Meetings. Value changes from the prior valuing year have been consistent with market movement. Within the residential zoned lands the values have increased in total by approximately 20.43% from 2016 levels. Properties within the LGA that have had significant value changes in this current year program reflect the recent strong market conditions and as indicated by sales analysis.

Valuation changes in the local government area and percentage changes between the council valuation year of 1 July 2016 and the land tax valuation years of 1 July 2017 is follows:

Zone Zone Code Entries

Prior General

Valuation (2016)

Total

2017 Total Value

Change

Since Prior

Valuing

Year

Residential E4, R1, R2,

R3, R5 62,350 $22,271,264,540 $26,821,469,920 20.43%

Commercial B1, B2, B3,

B4, B6, B7 2,304 $ 1,922,181,651 $ 2,182,194,730 13.53%

Industrial I, IN1, IN2,

IN3, IN4 1,203 $1,130,373,780 $1,170,620,210 3.56%

Infrastructure SP1,SP2, SP3 511 $508,441,951 $565,953,691 11.31%

Environmental E1,E2, E3 1,097 $ 424,716,311 $ 495,880,351 16.76%

Recreation RE1, RE2,

W1 895 $ 313,722,390 $ 341,605,174 8.89%

Rural R, RU1, RU2,

RU4 213 $ 196,704,210 $ 226,897,810 15.35%

Total

68,573 $26,767,404,833 $31,804,621,886 18.82%

LOCAL



NOVEMBER 2017

CVS Quality Assurance Measures Property NSW has been provided with a detailed valuation analysis report, which details the quality

assurance process of Crown Valuation Service Pty. Ltd. Contractor and outlines that the verification

process and certifies that land values meet all statistical measures and component data analysis. In

addition, a quality statement and lists of high value and high risk properties is also provided in the

valuation analysis report. Checks have been undertaken to ensure that all properties have been

valued, land values are consistent with each other, land value bases have been correctly determined

and all concessions and allowances have been supplied. Additionally, properties that had land values

amended through the objection or re ascertainment process were individually examined to reconcile

surrounding land values and ensure accuracy of the grading of surrounding land values. Benchmarks

and reference benchmarks are core elements of the quality assurance processes and are identified

and individually valued in accordance with the Rating and Taxing Procedures Manual Version 7.0.

Worksheets have been maintained on all properties where calculations are required. We have also

ensured that adjustments and assumptions within the market analysis have been based on market

evidence and have been fully documented and rationalised.

Author & Contractor Identification

This report has been prepared by and signed by:

Angela Parker

AAPI CPV

Contract Services Manager - Wollongong

23 November 2017

crown valuation services final report valuing year …€¦ · final report november 2017...

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