“Ultimately, if you have CSG activities occurring on your property, it will have an effect on your valuation,” John Moore explains.
Property values and valuations are typically based on market data, which is, what other properties in the area have sold for and how they compare to the subject property. At this point in time, there is no consistent market evidence to determine the long term impact of CSG activities on property values.
In the absence of sales data, how do we determine the impact on Property Values?
Valuers, as best as possible, view a property as it would be seen by the market. What can be determined is the loss of productivity due to the disturbance and negative impact of the activities, which will result in a reduction in value. As well as the positive value of an income derived from Coal Seam Gas (CSG) Activities.
If there are large amounts of CSG disturbance on a property and very little income being received annually for this disturbance, it certainly will have a negative impact on the property’s value. Although if there is good income being received from the CSG activities which far outweighs the impact, it may well be seen as a positive in the market place and therefore make the property more valuable.
A well negotiated Conduct and Compensation Agreement (CCA), is critical when it comes to asset security.John Moore - AgForce Rural Property Valuer
John Moore is a property valuer with 11 years’ experience in rural valuations throughout most of Queensland and has joined the AgForce team to provide members with a valuation service.
This service can help property owners to assess the positive and negative impacts of CSG activities and what the potential impact could be on their property value.
John can provide simple advice over the phone, or for a more in-depth consultation or on-the-ground work at your property, John offers a fee-for-service option that is discounted for AgForce members.
Alternatively, John is also available to travel to events, upon request, to keep members informed on what is happening in the property market in their area.
Below are two case studies explaining some of the services that John provides:
Case Study 1: Does your unimproved value fit in the current market?
An AgForce member from the North of St George made an enquiry about their Unimproved Valuation. They have heard of the advantages of Freeholding and have applied to convert their Grazing Homestead Perpetual Lease (GHPL).
They would like some advice to check that their unimproved valuation is correct as part of the process. John explained how the Department arrives at the valuation and that their valuation should be around 35-40% of the property’s market value.
The member believes that their property is worth $250 per hectare ($100 per acre), which equates to about $3,000,000. Their unimproved valuation is $600,000 which is 20%. John explained that the Unimproved Valuations have not risen yet, as there hasn’t been a revaluation since the property market has started to rise and therefore unimproved value is a bit undervalued.
This consultation would have been less than 30 minutes, so there is no cost to the AgForce member. Although the member has not saved any money, they are now happy that they are getting a good deal as part of the freeholding process.
Case Study 2: Wondering about the current property market?
An AgForce member from Central QLD is looking to purchase another property. They are interested in purchasing a property at Longreach, however they are not aware of the current market in the Longreach district.
John explained what the current market for open Downs properties are around the Longreach area. They asked him for some further in-depth valuation information about the property and John explain that he could provide a review of the property and a desktop valuation.
This compares the property to recent sales, includes a country breakup of the property using satellite images and soil type mapping.
The cost of this research would be around $250 - $500. This valuation would give the member confidence that the property they are interested
in would fit in with the current property market.
To book a consultation with John, call AgForce on 3236 3100.