Western Sydney Aerotropolis: lifeline for land value negatively impacted by Metro, green space

Land owners who sold property within the Western Sydney Aerotropolis saw as much as a 238 per cent increase in value, as a new plan for negatively impacted land value is revealed.

Landowners shocked to discover their properties would become undevelopable and “almost worthless” after being rezoned for major infrastructure or open space in Sydney’s west have been granted a lifeline by the NSW Valuer General.

Property owners in the soon-to-be developed Western Sydney Aerotropolis witnessed market value increase in the sale of properties by as much as 238 per cent, according to findings of a Valuer General investigation.

NSW Valuer General Dr David Parker handed down a new report on Wednesday.

It assessed the impact land rezoning in the Aerotropolis had on land value for property owners who sold before, during and after rezonings were announced for four precincts surrounding the airport hub.

The land values from sales will be used as a yardstick for statewide rezoning policy.

NSW Premier Gladys Berejiklian, Minister for Jobs, Investment, Tourism and Western Sydney Stuart Ayres and Jim Bradfield, the grandson of John Bradfield announce the naming of Bradfield as Sydney newest city on the doorstep of the Western Sydney Aerotropolis. Picture: NCA NewsWire / Jeremy Piper

“The review will also support determinations of market value by the Valuer General for compulsory acquisitions of properties that are impacted by infrastructure projects,” he said.

The review did not assess the impact of a NSW Government announcement of an Open Space Netweork rezonings — which proposed some properties would be rezoned for green space rendering them undevelopable.

However, Dr Parker established a series of “basic principles” to determine land value affected by the open space network.

To achieve fair compensation, he said the NSW Government would “apply a full market rate” based on surrounding land sales of property not included in the network, while also analysing unrestricted developable land rates.

A total of 48 land sales within the Aerotropolis rezoned precinct in the five years to 2020 were assessed as part of the study.

Dr Parker suggested the review “found an upward trend in land values” even before rezoning was announced.

The Valuer General assessed factors such as the time of sale, land use, and demand for rezoned land during the study.

“Total market increases ranged from 58 per cent to 238 per cent across three of four Aerotropolis precincts that were studied.”

The Agribusiness precinct could not be properly analysed as there was not enough sales evidence available.

An artist impression of the Orchard Hills Metro Station.

A stark difference in the tale of two rezoning experiences in the Western Sydney Aerotropolis was uncovered in February.

NewsLocal revealed western Sydney landowners whose property were rezoned for infrastructure or environmental use were to be offered between $20 and $70 per square metre.

Meanwhile, the NSW Government was advised to pay up to $450 per square-metre for land zoned for mixed-use residential and commercial sites; between $250 to $300 for agribusiness; $300 to $350 for enterprise and $130 to $180 for special activity zones.

Orchard Hills resident, Christine Vella said she was relieved by the change in tact.

“The valuer general’s findings prove that the increase in surrounding land value of properties not restricted by infrastructure or open space rezoning should be assessed when determining the value of land rezoned for infrastructure or open space, which includes residents impacted at Orchard Hills,” she said.

Private land rezoned for environmental or infrastructure use will now be compared to unrestricted property land sales during the NSW Government’s acquisition process. Picture: Handout via NCA NewsWire

“Without this change in tactic, we will not get a fair or just outcome so this policy needs to be applied to us to ensure we are fairly compensated.

“What they have offered us meant our property was almost worthless, we couldn’t buy back into Orchard Hills or the wider Penrith area.

“To consider and assess surrounding land sales of unrestricted zoning is appropriate and a lot fairer than what Sydney Metro are currently offering.”

Luddenham Agricultural, Horticultural and Industrial Society president and resident Rob Heffernan said the basic principles proposed would offer “security in the land values residents deserve for their property”.

Rob and Debra Heffernan on their property in Luddenham. Picture: Richard Dobson

“It is great that there will be an improvement on the processes used for fair compensation,” Mr Heffernan said. “But previously the Valuer General’s recommendation on land value of a property is generally less than the market value, so this also needs to be rectified.

“The State Government has, for a long time, tried to acquire property below the value presented by the Valuer General.”

Mr Heffernan described the rezoning situation as a tale of two experiences — a major payday for residents not acquired by the government, and a fight for fair compensation for those facing acquisition.

“The government has no intention of purchasing green space earmarked on our property that they have already rezoned,” he said. “This means a large portion of our land has been devalued with no compensation — why would a developer want to foot the bill for it?”

Bringelly resident and Aerotropolis Community Liason Group member Joe Herceg said landowners were still being short-changed by being forced to retain land proposed to be environmental and open space for up to 20 years.

“Fair land value on property zoned for environmental has been something that has been lacking in the government’s acquisition plans,” Mr Herceg said.

(L to R) Bringelly residents Joe Herceg, Tanya Stepanov and Rita Herceg at the Herceg's property. (AAP IMAGE/Simon Bullard)

“Property owners whose land has been rezoned for environment and recreation are currently disadvantaged, they are stuck in limbo for up to 20 years because the government doesn’t have the funds to purchase all the land earmarked for open space.

“There needs to be the option of a voluntary acquisition process to ensure fair compensation.”

The Bringelly resident said the community were “not fine” with the uncertainty over when land would be acquired.

“This green spine is important, the government keep reminding us of this, but they need to purchase the land at a fair rate and when property owners decide to,” he said.

“The government decided to identify 1100ha in parkland and open space in the Wianamatta South Creek precinct, which is a public need — they need to compensate the private property owner appropriately.

“Massive swathes of land is now valueless because of the governments rezoning to environmental and open space and now there is now only one buyer — the taxpayers.”

He said if the public require open space, “they need to own it”.

Opposition Western Sydney spokesman Greg Warren said it “beggars belief that is has been left to the NSW Valuer General to do what the NSW Government couldn’t do – give residents in Western Sydney’s Aerotropolis a fair deal for their homes”.

Greg Warren. Picture: NCA NewsWire/Joel Carrett

“This government has used the construction of the Western Sydney Airport and Aerotropolis as an excuse to rip people’s properties out from under them and make a quick buck,” he said.

“If the government had its way it would forcibly take land for a pittance and sell it off a later date for an exorbitant amount of money.

“The Member for Mulgoa described the NSW Liberal’s tactic perfectly, labelling it “legalised theft” — it’s certainly encouraging that the NSW Valuer General wants to prevent the heartless an callous NSW Liberals from engaging in ‘legalised theft’.”