VPD Ass1 - Valuation of vacant land: 99 fountain Street, Pimpama, QLD, 4209. PDF

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Valuation of vacant land: 99 fountain Street, Pimpama, QLD, 4209....

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Valuation Report Valuation of vacant land at 99 Fountain Street, Pimpama, QLD, 4209 Property Investment and Valuation SSUD71-107 - Semester 192

Valuation date: 23 May 2019 Due date: 6 June 2019

Prepared by Helene Humbert and Cheng Yu Students at Bond University, Master of Project Management Master of Valuation and Property Development

CONTENTS 1. INTRODUCTION................................................................................................................................................... 3 2. DESCRIPTION SUBJECT SITE AND SURROUNDING AREA..................................................................................... 3 2.1 Location ........................................................................................................................................................ 3 2.2 Public Transport ........................................................................................................................................... 4 2.3 Accesses ....................................................................................................................................................... 4 2.4 Amenities ..................................................................................................................................................... 4 2.5 Shopping centres .......................................................................................................................................... 4 2.6 Schools ......................................................................................................................................................... 4 3. DESCRIPTION OF SUBJECT PROPERTY................................................................................................................. 5 3.1 Particulars of property ................................................................................................................................. 5 3.2 Topography .................................................................................................................................................. 5 3.4 Ownership .................................................................................................................................................... 5 3.5 Encumbrances .............................................................................................................................................. 6 3.6 Nature of soils .............................................................................................................................................. 6 3.7 Utilities ......................................................................................................................................................... 6 4. Market commentary ........................................................................................................................................... 7 4.1 Australian market ......................................................................................................................................... 7 4.1 Queensland market ...................................................................................................................................... 7 4.2 Gold Coast market........................................................................................................................................ 7 4.3 Pimpama and Coomera market ................................................................................................................... 7 5. Tables of properties in the same site ................................................................................................................. 8 5.1 Sale analysis table ........................................................................................................................................ 8 5.2 Adjustments table ...................................................................................................................................... 11 6. Valuation........................................................................................................................................................... 14 7. Individual Commentary .................................................................................................................................... 15 Helene Humbert ............................................................................................................................................... 15 Cheng Yu........................................................................................................................................................... 16 8. Field notes of Lot 4 ........................................................................................................................................... 17 REFERENCES.......................................................................................................................................................... 18 APPENDIXES .......................................................................................................................................................... 19 Appendix A – Survey Plan Site .......................................................................................................................... 19 Appendix B – Survey Plan Lot 4 ........................................................................................................................ 20 Appendix C – Main accesses to the site from Nearmap and Translink ............................................................ 21 Appendix D – Title Search ................................................................................................................................22 Appendix E – Site subdivision, from 721st report of City .................................................................................. 23 Appendix F – Zones of the subject site, from City of Gold Coast ..................................................................... 24 Appendix G – Photos of the properties analysed ............................................................................................. 25

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1. INTRODUCTION The valuation of the subject property was undertaken on the 23th May 2019 at the 99 Fountain Street, Pimpama, QLD. It is a free simple land, Lot 4, Survey Plan 291935 (see Appendix A and B). This valuation report is based on the inspection of the subject property and eleven other lands surrounding. The visit of the site provides relevant observation elements such as size, land topography, site accesses, aspect and surrounding development for each land. Those elements combine with data from RP Data, Near Map and City of Gold Coast issue accurate information. This enquiry was made to determine the value of lot 4 by a direct comparison approach. This method through different steps, observation, comparison and analysis determines the positive and negative aspects of the subject site compared to the others. However, this approach requires making adjustments over the analysis. The opinion given in this report is the value of the free simple land at the evaluation date, 6th June 2019.

2. DESCRIPTION SUBJECT SITE AND SURROUNDING AREA 2.1 Location Pimpama is a suburb located in the northern part of the Gold Coast, in the South of Queensland. It is lying between Brisbane and Gold Coast at around 30 min drive for both cities. The subject site and its close area contain a wide range of different components, such as urban residential, agriculture, nature conservation and haulage route. The last census was made in 2016 with an estimate of the population in Pimpama ‘s area at 9,396 inhabitants. The northern west of the site is made up of the river Hotham Creek which is only 2m above the sea level. According City of Gold Coast website, the subject site is at the boundary of a floodplain that may explain the presence of two storm water ponds (hydralinc n.d.). The subject site is a low-density residential zone divided into 234 lots with public open space and roads over three stages. Lots’ width vary from 11 m to 15.7 m (Report 721th City of Gold Coast 2018). The western borderline of the subject site which adjoins Fairbourne Street is constituted of one recreational public open space, 0.56 Ha and two storm water detentions 1.4 Ha. However according to the report 750 of the City of Gold Coast, dated of February 2018, the northern area is plan to be a new residential zone. This site is nearly located equidistant between the main facilities in Brisbane and in the Gold Coast (see Fig 1).

MAIN BENCHMARKS Pacific Motorway (M1) Brisbane CBD Brisbane Airport Southport CBD Gold Coast CBD (Crombie Ave Bundall) Gold Coast Airport Griffith University Bond University

DISTANCE FROM SITE 500 m South-West 49 km North 59 km North 27 km South 30 km South 54 km South 42 km South 37 km South

FIG 1. Table presents distance from subject site from main areas around

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2.2 Public Transport The site is located at around 2 km from the nearest train station, Ormeau and 500 m from the nearest motorway exit, Exit 49. According to the Department of Transport and Main Roads (2019) website, M1 Pacific Motorway is one of the busiest roads in Australia carrying between 50,000 and 155,000 vehicles per day on the section Springwood to Tugun. The studied site is served by the Citytrain network through Ormeau station deserving Gold Coast, Helensvale, Brisbane and Brisbane Airport. According to TransLink (2019) the stops bus on the site are on Depot Road and Pimpama Jacobs Well Road, Stop Id 320330, 301229, 301230 and 320329, route 721 and 722. Both roads serve Ormeau and Coomera station. They serve also Pimpama City Shopping Centre and Coomera Town Centre (see Appendix C). Route 721, goes to the south of Pimpama through Coomera and Upper Coomera stopping at Coomera Springs State School, Coomera City Centre whereas route 722 goes to the east of Pimpama serving Pimpama Junction Shopping Centre, Pimpama State Secondary College, Pimpama State Primary College, St Joseph’s College, Coomera Rivers State School and Gold Coast Institute of TAFE.

2.3 Accesses The site is located between the Pacific Motorway and the Citytrain (see Appendix C). Access to the site by car is provided via Creek street to the south and Pimpama Jacobs Well Road to the north. The south of the site is delimited by the following axes of circulation, Attenborough Road, Pimpama Jacobs Well Road and M1 on the South and Pimpama Jacobs Well Road and Old Pacific Highway on the east.

2.4 Amenities Surrounding the site, there are several amenities such as parks, golf court (Gainsborough Greens) and a karting circuit.

2.5 Shopping centres The closest shopping centre is on Pimpama Jacobs Well Street, opened on September 2018, called Pimpama City Shopping Centre at 500m from Lot 4. It includes a wide range of restaurants, cafes, groceries, banks, insurances, a fitness club, a vet, a radiology, chemistry and a medical centre. The other closest from the site are respectively Pimpama junction Shopping Centre, Ormeau Shopping Centre and Coomera Shopping Centre.

2.6 Schools There are 6 schools including state and private schools within a radius of 2.5 km of which the closest ones are King’s Christian College at 1.3 km and Pimpama Primary school at 2.5 km.

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3. DESCRIPTION OF SUBJECT PROPERTY 3.1 Particulars of property Refer to Appendix D for the Title search.

Lot 4 is a part of a residential estate know as Pimpama village by Symphony. It is the first stage (A) of three stages of the estate (see Appendix E). The subject property is currently vacant. Its number is 354515, Lot 4 SP291935. The subject is a Free Simple site, which is made up of 540 sqm irregular rectangular situated in an allotment of 26 lots. The title reference of the property is 51119707, dated of 31st October 2017. The boundaries of the allotment are Howard Street and Coldstream Street for the south-north and Village Boulevard and Fountain Street for the west-east. The subject property is facing east on fountain street, the only side on a narrow road. Fountain road is a low traffic road and it is accessible by two cars in the same time except if there are cars already parked on the street. There is no special room to park the cars in this street. This compels to slow down and drive carefully. The property is located near the M1, and undergoes the sonorous nuisance that may impact negatively on the appeal of the land. However, the motorway is not visible from the land hidden by the vegetation.

3.2 Topography The subject property is level from the street and it is constituted up north with lot 5, slightly the same size, 496 sqm and lot 3 at the south with 522 sqm and are both slightly the same level of the subject property. The western boundary is comprised of two smaller lands lot 18 and lot 17, respectively of 376 sqm and 394 sqm. The western boundary covered nearly the eastern borderline of both properties. The north-west and north-east boundaries of the subject property measure 17.163 m and 34.393m respectively. The south-west and south-east boundaries measure 34.545m and 12m respectively. The parcel is delimited by a wood fence on three sides, except on the street side. The border adjoining lot 17/18 is 5 m larger than the side on the street. The shape of the lot 4 is therefore an irregular rectangle, dead flat and facing south-east on the fountain street. The lot 168 is located 2m lower that the subject property. This significant difference of level offers a clear view from the parcel.

3.4 Ownership The registered owner is Eagle street finance PTY LTD CAN 119 052 247, registered on 24th October 2017. The last sale of the property was in June 2016 at $241,900 (Real Estate 2019).

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3.5 Encumbrances Refer to Appendix D for the Title of search. The title of search states: Rights and interests reserved to the Crown by Deed of Grant No. 10043237 (POR 3). There is no easement or encumbrance noted on the property according the title of search.

3.6 Nature of soils Refer to Appendix F – Zones of the subject site, from City of Gold Coast. According Nearmap, the property is close to a flood and bushfire zone. It is lying in a significant environmental wetland and with a waterway 30 m buffer area. It is located on an acid sulphated soil. The property is not in a noise corridor; however, the visit of the site demonstrated the opposite.

3.7 Utilities The subject site is connected to the NBN, water, gas and electricity.

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4. Market commentary 4.1 Australian market As reported in the Herron Todd White (HTW), Month Review of April 2018 (p. 45), property in Brisbane area remains globally positive and has a reasonable discount price. In the contrary, house price declines in Melbourne and Sydney but not in the worst conditions that the country has known over the last 30 years. In the other cities, prices are mainly stabilising or with a moderate growth. The cities that hit the best growth are Hobart, Canberra, Adelaide and Brisbane respectively. The higher median price is Sydney with $840,000 but also the city with the bigger fall 5.9 % whereas Hobart has the lowest median price with $420,000 but the largest growth with 8.4 %. According the Financial Services Royal Commission, it is unlikely to be restrictive for home buyers to obtain a loan.

4.1 Queensland market In Queensland, Brisbane has a median price of $490,000 and a very slight growth of 0.1 % per year. Its median price of apartments is only of $390,000 with a drop of 0.5 % per year, its median price housing is significantly higher with $530,000 and an increase of 0.3 % per year. (Real Estate n.d.). Some forecast a growth in Brisbane of the median house price between 2018 and 2021 of 13 % (Property Update n.d.). Queensland is becoming the number 1 destination for migration and bringing into Brisbane around 12,847 new residents (Property Update n.d.). However, the next trends on the market will depend on the results of two significative events.

4.2 Gold Coast market Gold Coast, after the Commonwealth Games of April 2018, period in which prices slumped, the city has recovered and prices increase again. In fact, Gold Coast has a median price of $537,500 and a rise per year of 0.9 %. Over the past 12 months, some suburbs such as Main Beach and Currumbin have respectively increased by almost 30% and 13 %. Some explains this growth by the Gold Coast’s developing economy and the low levels of new development (Real Estate 2019).

4.3 Pimpama and Coomera market The region west of the Pacific Motorway has a variety of vacant lands and the market in this region remains patchy. According Herron Todd White, some lands in Pimpama and Coomera have expanded new stages and they sold out all the lands during a period of high demand. However, the new sites are impacted by the slower leaving vacant lands for a long time. Despite this little perturbation, new lands are appearing in Coomera thanks to the strong demand and by the recent opening of Westfield Coomera Town Centre and a new secondary school. The accessibility should be improved as well in this region due to the likely build of the future Coomera Connector arterial road. This new corridor would ease the traffic congestion on the M1. Nevertheless, negative impacts such as noise, pollution, especially for homes located to the future thoroughfare drove to some trepidation for local homeowners. On another hand, the positive impact of the new route is better fluidity to commute. In this region, allotments of 200m2 to 400 m2 are respectively priced at $190,000 to $270,000 whereas larger allotments of 400m2 to 600m2 are priced $300,000 and over (Herron Todd White May 2019). Property Investment and Valuation – Helene Humbert and Cheng Yu – Assessment 1

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5. Tables of properties in the same site 5.1 Sale analysis table Refer to Appendix G for the photos of the properties.

No

Address

No. Lot

Land Areas (m2)

Sale Price

Sale date

Description

Analysis

Subj. Prop.

99 Fountain St. Pimpama, QLD, 4209

4

504

Unknown

Date of valuation 23th May 2019

- Clear view, view of the mountain due to the higher level of the site - Large land, negative impact, noise - Difficult to park in front of the land. If two cars are parked, it is required to drive carefully

1

27 Village Blvd. QLD, 4209

18

376

$ 265,000

14/11/18

2

17 Village Blvd. QLD, 4209

168

470

$ 286,000

11/03/19

- Irregular shape - Dead flat and level street - Medium noise from M1 - Facing East on the street - 2.1 m higher than the land behind - Clear view - Narrow and quiet street - Border on three sides by 1.80m wood fence - Narrow regular shape - No view - Low noise - Very slight slope down from the street - Facing North-West on the street - On a well-travelled road, driveway for Pimpama village and connected Creek Street to the Shopping centre. T-section + space to park in front of the house - Retaining wall 2m, at the rear of the land + 1.8 m wood fence - Irregular shape, corner block - Slight slope from down from the rear to the round about - View of the mountain - On a well-travelled road, on a round-about, no space to park in front of the land - Medium noise - Faci...