Valuer General’s report suggests coal seam gas may reduce property values
MEDIA RELEASE – 12 May 2014
The Greens NSW spokesperson on mining Jeremy Buckingham today expressed concern that a detailed report by the NSW Valuer General suggests that a mature coal seam gas industry may reduce property values.
The report, commissioned the Valuer General in 2013 to investigate if the CSG industry is having a material impact on land values in New South Wales, found that:
- as the industry is in its infancy in NSW there is not enough data to make an accurate assessment of the impact of coal seam gas on property values in NSW specifically;
- there is anecdotal evidence which indicates that in some parts of NSW “negative perceptions of CSG [have] led to a reduction in the number of potential purchasers and an increase in the time taken to sell properties”
- there are studies in America which have found that a net reduction in property values of up to 22% has occurred on properties with a gas well located on them
“Overseas experience clearly shows that a mature unconventional gas industry will have a negative impact on land valuation”, Greens MP Jeremy Buckingham said.
“Currently there is a perception issue which is affecting land prices, but in the future we can expect to see further reductions as the inevitable environmental damage and legacy of ageing infrastructure become apparent.
“Coal seam gas production will see the disruption of other land use activities such as farming and tourism and this will contribute to further property price falls.
“Landholders are starting to ask themselves if the short term cash per well offered by the industry is worth the long term write down in their asset values.
“It is unacceptable that farmers and communities should be slugged with a reduction in their land values to support the profits of multinational gas companies.”
Contact: Max Phillips – 9230 2202 or 0419 444 916