Tweet
                                               

Media rants about wind farm land values don’t fly

Whether wind farms affect property values has been hotly contested.

By Cameron Jewell

14 October 2013 — A newspaper article widely published in Fairfax Media today [Monday] purports that wind farms could reduce the value of adjoining property by up to 60 per cent. But the evidence is flimsy.

The article stated that an “independent report” performed by a property valuer established that “rural landholders across Australia may face a disappearing pool of buyers and plummeting values”.

The “detailed evidence” was based on a sample size of three property sales hand-picked by Goulburn-based property valuer Peter Reardon, the original article published in the Australian Financial Review said.

When asked about the sample size and methodology for selecting properties, Mr Reardon told The Fifth Estate the evidence for wind farms affecting property prices was “really thin on the ground” because of the relative newness of the wind farm industry, and that there was only limited data on sales of properties within two kilometres of wind farms. Though data, he said, was now coming through.

However, according to the Clean Energy Council, multiple studies have been performed locally and internationally “by respected and independent organisations”, and have consistently found no correlation between wind farm proximity and property prices.

“The value of properties goes up and down for a wide range of reasons,” the council said. “Supply and demand, proximity to amenities and infrastructure, housing affordability and the desirability of the location can all have an impact. If someone is having trouble selling their property and it is near a wind turbine, there could be many other reasons to explain why this is the case.”

A recent study by Lawrence Berkeley National Laboratory analysed over 50,000 home sales in the US and found no impact on sale prices.

See our article Study: wind turbines do not affect property price

A “preliminary assessment” by Preston Rowe Paterson for the NSW Valuer General, mentioned in passing by the AFR, also found that after looking at 45 house sales, no decrease in property price could be found.

“The main finding was that the wind farms do not appear to have negatively affected property values in most cases,” the report stated.

However, it noted that “the small samples of sales transactions available for analysis limited the extent to which conclusions could be drawn”.

Mr Reardon told The Fifth Estate that the two properties where there was a decrease in value of 33 per cent and 60 per cent (compared with comparative land sales) were small “lifestyle properties” with no houses built on them.

A larger 1200-acre property showed no decrease in value, he said.

In the Preston Rowe Paterson report there were also instances of lifestyle properties losing value, though these were “mixed and inconsistent”.

“There were some possible reductions in sale prices identified in some locations alongside properties whose values appeared not to have been affected,” the report stated. “Consequently, no firm conclusions can be drawn on lifestyle properties.”

Because Mr Reardon’s report, which was contracted by a farmer worried about the impact of a wind development on his land value, was performed “basically on a pro bono basis”, a copy was not immediately available, and could only be ordered in hardcopy for a fee of $550.

Comments

6 Responses to “Media rants about wind farm land values don’t fly”

  • George Papadopoulos says:

    Nick, I refer you back to my previous comment: we are talking of rural properties and acreage prices. Low lying land, even if prone to waterlogging can still be highly desirable grazing land. In case you weren’t aware waterlogging is a common problem in the area, even on gentle slopes.

  • Nick Valentine says:

    George, my question was to Paul but I will indulge you here. I haven’t had a look at the comparison properties, but the Cullerin property fronts the Hume Highway which separates the property from the Cullerin WF. It also has a 330kV transmission line running through it (one of those big lattice style lines). The site looks poorly drained and, from memory, has little scenic outlook. I’m suggesting the original asking price was probably optimistic. Why don’t you pop down and have a look for yourself George and let me know what your conclusions are re: the property’s rural residential amenity?

  • George Papadopoulos says:

    RE: Nick Valentine

    Nick, given that you are familiar with the Cullerin property, how do you feel it compares with the other properties cited in Reardon’s report? Keep in mind we are talking about rural land.

  • Nick Valentine says:

    Hi Paul
    Are you familiar with the Cullerin property cited in the report? Would you be interested in that portion absent the wind farm? If so, what would you think a reasonable offer would be?
    I’ve visited that portion several times.
    Regards

  • George Papadopoulos says:

    The Lawrence Berkeley National Laboratory report analysed home values out to a distance of 16km away from wind farms – one simple reason it failed to demonstrate any statistical significance.

    The report prepared by Reardon however did provide a detailed specific details that clearly showed how properties can be impacted by wind farms.

  • Paul Vallely says:

    I am the ‘farmer’ who commissioned the report. Until the report was completed, I was indifferent to wind farm projects. While only three properties were suitable for value comparisons at this stage, two of the three showed significant devaluations. We are not suggesting this is the norm, however, it does show that property prices can be devalued due to windfarm projects. I might add that previous reports were regarded as invalid as they were commissioned by wind farm proponents or others with a vested commercial interest. The VG’s report was too broad scoping, however, did acknowledge the possibility of price devaluations. We have asked that property prices continue to be monitored. I am happy to provide a copy of the report to anyone by emailing me (no charge).

Comments are closed.

More Articles on this Topic