LAND MONITOR REPORT - PDF Free Download

LAND MONITOR REPORT 2015-2016

contents Introduction 3 Housing Industry Association Wagga Branch 3 Deﬁnitions 4 Accuracy & Data Interpretation 5 Disclaimer 5 Opteon Southern Inland NSW 5 Residential Land Key Findings 7 Residential Land Graphs 8 Potential Residential Supply 15 Construction Statistics 20 Forecast Population and Dwellings 21 Commercial Land - Key Findings 23 Commercial Land - Graphs 24 2

The Wagga Wagga Land Monitor Report has been developed by the Housing Industry Association Wagga Branch and provides an overview of the vacant land supply in Wagga Wagga. The statistical information relates to historical take-up rates, current production and consumption together with future supply of vacant residential, rural residential, commercial and industrial land. This report also includes information regarding commercial and retail ﬂoor space together with demographics and development applications reported by ﬁnancial years. It is hoped this information will enable stakeholders to make better informed decisions relating to market demand and future economic growth. The ultimate aim is to ensure that there is a suﬃcient supply and choice of vacant land going forward. THE HOUSING INDUSTRY ASSOCIATION WAGGA BRANCH The Housing Industry Association (HIA) is the oﬃcial body of Australia s home building industry. HIA is divided in nine geographic regions that provide a state or local focus, ensuing members needs and ideas are heard at the highest level. Our policy areas cover economics, industry, building, planning, industrial relations, legal, environment, training and skills. We advocate the views and policies of our members by contributing to enquiries and forums that impact on the residential building sector. For information on the local branch phone 1300 650 620 or email enquiry@hia.com.au We thank The City of Wagga Wagga for providing statistical data during to the production of this report. 3

DEFINITIONS The following deﬁnitions have been adopted throughout this report: Vacant Land A lot that is vacant and is suitable for either residential or non residential development. Lots produced for the purpose of public reserves, road reserves and boundary adjustments etc. have been excluded from this report. Redevelopment sites for the construction of residential units are considered produced once a Construction Certiﬁcate (CC) or Complying Development Certiﬁcate (CDC) has been issued. Commercial Use Units Use Land in the Wagga Wagga central business district and in the vicinity of suburban shopping centres. Land suitable for the construction of Community Title and/or Strata Title units, duplexes, multiple dwellings on one title and ﬂat developments. Industrial Use Lots Consumed A vacant lot on which construction of a dwelling or unit has commenced in the ﬁnancial year. Land suitable for industrial and business uses outside the CBD and removed from suburban shopping centres. Median The median is the middle point of a number set, in which half the numbers are above the median and half are below. Dwelling Use Lots Produced Lots Sold Lots produced for either residential or non residential use that have been registered with the New South Wales Land Titles Oﬃce (LTO). Also includes lots that have become vacant due to demolition and removal of previous improvements and remained vacant till the end of the ﬁnancial year. A vacant lot for which a Contract of Sale was exchanged during the ﬁnancial year and that sale registered with the LTO. Settlement of the sale may have occurred after the end of the ﬁnancial year. We have attempted to exclude any sales that are between related parties. Land suitable construction of residential dwelling. for the a single Average The average is obtained by dividing the sum of a set of values by the number of values in the set. Rural Residential Use Land suitable for the construction of a single dwelling with a site area generally larger than 1,200 square metres. Population The population statistics quoted in this report relate to the whole Local Government Area of Wagga Wagga. 4

ACCURACY & DATA INTERPRETATION As with any statistical calculation, a margin of error will result. In this report such errors are minor and typical due to a small percentage of lots which may not comply with the above deﬁnitions or a delay in information becoming publicly available. This report should not be used as an indication of a change in market value or the performance of our economy. Property market growth or decline is the result of various factors not limited to: The strength of the economy. Decreasing household sizes resulting in more houses being required for the same population. Housing aﬀordability as result of various factors such as interest rates and rising construction costs. Temporary housing demand as result of major building projects. OPTEON SOUTHERN INLAND NSW The information in this report has been researched, collated and produced by Opteon Southern Inland New South Wales. Formerly Bolton Connolly, we are the largest real estate valuation and advisory ﬁrm in Wagga Wagga. Established in the late 1970s we have over 35 years experience in the Riverina and South West Slope s regions of New South Wales. Through the Opteon Property Group our Wagga Wagga and Griﬃth oﬃces are part of the largest valuation ﬁrm in Australia. Our local knowledge and experience together with our network around Australia ensures we can provide the highest quality advice regardless of your needs. When you next require professional property advice contact us at wagga.info@opg.net Government decisions and grants that aﬀect homebuilders. A shortage of supply of land. The availability of large in globo parcels that attract larger property developers to the market. DISCLAIMER Copyright in the report and the information is owned by the HIA Wagga Branch. Reproduction is not permitted without the prior written consent of the HIA. While the information contained in this report has been prepared with all due care for the beneﬁt of the user, the HIA Wagga Branch, its oﬃcers, employees and agents do not warrant or make representations in relation to its accuracy. The information is made available on the understanding that the HIA shall not have a liability for any loss whatsoever that might arise as a result of use of the information by the reader or by third parties who receive information directly or indirectly. It is the user s responsibility to make his or her own investigations, decisions and enquiries about the accuracy and completeness of the information. 5

2015-2016 SNAPSHOT 816 vacant residential lots - 7.5% fewer blocks than the year before 358 new vacant lots produced - 123 fewer blocks than the year before 306 lots in the city have been vacant for over 4 years - a 12% decrease 420 lots were built on - the highest number in the 4 years of this report. Average price of vacant lots increased $6,197 - being a 4.5% increase 457 vacant lots were sold - a 29% increase on the previous year 333 of sold lots were between 600 & 1,500 sqm in size Approx. 3,400 potential future lots zoned residential Residential 6

2015-2016 KEY FINDINGS RESIDENTIAL LAND As at 30 June 2016, there were 816 vacant 420 vacant lots were built on in the city, an The sale of rural residential lots accounted residential lots in Wagga Wagga a decrease of 7.5% over the previous year indicating demand exceeded supply. 11% increase on the year before and more than double the number of blocks from 4 years ago. 358 new vacant lots were produced in the Due to the large government developed city. This is 123 fewer lots compared to the year before. The number of vacant dwelling lots produced decreased by 16%. estate, Tolland had the highest number of blocks that had been vacant for more than 4 years at 62 blocks. The number of blocks that have been vacant The for more than 4 years reduced by 12% from 347 to 306. majority of the cities developing suburban estates recorded increases in average sale price this year. The Wagga Wagga unit market was the The average sale price across Wagga Wagga for about 11% of the market and recorded an increase in average lot price. The highest average vacant lot price per square metre was recorded in the new release at Turvey Park, being $195 per square metre. Central Wagga Wagga remains our most expensive suburb per square metre due to a limited supply of land however only house and land packages were recorded in the 12 month period. suburb with the highest number of vacant lots at 30 June 2016 being 111. increased from $141,056 to $147,253, a 4.5% Due to the limited number of vacant land increase, in the last ﬁnancial year. sales occurring in Tolland the average sale price ﬂuctuates each year. This year 5 sales Of the 358 vacant lots produced in Wagga Wagga s median sale price of were recorded, four in Kansas Drive between 2015-16, 57.5% were located in 2 suburbs. $133,000 has increased for the ﬁrst time in 4 $104,000 and $142,500, however this These being Gobbagombalin (141 lots) and years. average was pulled back by one sale in Kenny Boorooma (65 lots). 73% of the 457 vacant lots sold in 2015-16 Place at $27,500. were between 600 and 1,500 square metres. 7

The following totals include vacant sites suitable for the construction of single residential dwellings, unit developments and rural-residential properties 8

The following totals include vacant sites suitable for the construction of single residential dwellings, unit developments and rural-residential properties 10

The following totals include vacant sites suitable for the construction of single residential dwellings, unit developments and rural-residential properties 11

Total lots that have been vacant for more than 4 years at 30 June 2016 306 13

The above totals include vacant sites suitable for the construction of single residential dwellings, unit developments and rural-residential properties 14

ESTIMATED POTENTIAL LOTS ZONED RESIDENTIAL NOT SUBDIVIDED AT 30 JUNE 2016 Gobbagombalin 3400 Boorooma 1,070 Lots Estella 170 Lots 330 Lots Wagga Wagga Turvey Park 120 Lots 50 Lots Estimated potential greenﬁeld lots Governors Hill 135 Lots Forest Hill 325 Lots Lloyd 1,130 Lots Lake Albert 70 Lots This information was supplied by active land developers and represents the majority of potential greenﬁeld residential subdivisions. Other developable parcels are located throughout the city although may not be zoned residential. 15

The following totals include vacant sites suitable for the construction of single residential dwellings, unit developments and rural-residential properties 16

CONSTRUCTION STATISTICS Source: id.com 2016 20

FORECAST POPULATION AND DWELLINGS Existing Lots (excluding aged) At 30 June 2016 510 New lots constructed this year 2015-16 358 Estimated Potential future lots 3,400 10 years supply 21

2015-2016 SNAPSHOT No additional industrial or commercial lots produced this ﬁnancial year 7 industrial lots had been built on in the year 73 vacant industrial lots, a 9% decrease The majority, (70%) of vacant industrial lots are at East Wagga Wagga 26 vacant commercial lots For 2 consecutive years Non-Residential Construction has decreased by about 50% per year Residential Development Applications accounted for approximately 70% of constructions costs this ﬁnancial year. commercial 22

2015-2016 KEY FINDINGS COMMERCIAL LAND No commercial or industrial lots were produced in 2015-16 ﬁnancial year. At 30 June 2016 there were 26 vacant commercial land parcels in the city, 3 lot less than last year. 9 industrial lots were built on in 2014-15 and 7 seven industrial lots in 2015-16. At 30 June 2016, of the 80 vacant industrial lots 70% were located in the East Wagga Wagga area. The cost of non-residential construction has ﬂuctuated signiﬁcantly over the last 7 years. For two consecutive years NonResidential Construction has decreased by about 50% per year. Residential Development Applications accounted for approximately 70% of constructions costs this ﬁnancial year 23