Land Use Advice for TfNSW Concurrence Guidelines
AEC was engaged by Mecone to undertake an analysis and provide recommendations on the ‘cost implications’ of land development on the future acquisition cost of a
site in the Western Sydney Corridor, for the Department of Transport for NSW (TfNSW). To understand the impact of development on the Market Value of a property (pre- and post-development), some notional development scenarios were tested using the Summation method of valuation. To illustrate the impact that similar properties in the market have on a specific site, sales evidence was analysed and reported. Recommendations were made based on the findings. The recommendations suggested TfNSW seek strategic valuation advice if acquisition is expected to be within 20 years of receipt of the DA. However, if acquisition is expected to be beyond 20 years from DA, the impact of the development itself will likely be minor, hence TfNSW may choose to dispense with valuation advice (noting that this does bear some risk as surrounding properties can impact the overall property value).