Camden property prices not affected by coal seam gas - NSW Valuer General report

AGL has welcomed a NSW Valuer General’s study released yesterday which has found coal seam gas activity on or near properties has no clear impact on the land value.

The “Study on the impact of the Coal Seam Gas industry on land values in NSW” assessed four areas in NSW where the coal seam gas industry was active, including Camden where AGL has had an operational gas plant for 13 years.

The study was based on the sale of eight properties that had coal seam gas wells, and 53 properties that were located between 200 metres to 38 kilometres of coal seam gas activity.

The conclusion of the study stated that “there was no observable difference in the values of the comparable sales based on their distance from the CSG activity ... thus, the limited market evidence available for this study indicated no clear impact of the CSG industry on land values in NSW”.

In Camden, which currently has 95 gas producing wells, local property experts “indicated that they did not feel the coal seam gas industry has had any impact on land values in the area ... (and) consider that the extent of CSG development is not obtrusive”.

This was based on the sale of four properties with coal seam gas wells and 29 properties that were within 200 metres to 20 kilometres of coal seam gas activity in the Camden area.

In addition, analysis of sale prices at Mt Annan and Spring Farm sub-divisions “indicated no single impact to value of single residential homes located in view or close proximity to the CSG production wells”.

AGL’s Head of Land and Approvals, Suzanne Westgate, said the study provided some important fact-based data on the impact coal seam gas has on land value.

“We welcome the NSW Valuer General’s study and believe it contradicts claims that coal seam gas operations decrease property value,” Ms Westgate said.

“We know the issue of property values has been a concern for some members of the communities AGL works in so hopefully this study will give them some peace of mind.

“AGL works side by side communities such as Camden and we commit to the same level of operational rigour at all of our coal seam gas locations.”

The NSW Valuer General’s report is consistent with two RP Data reports commissioned by AGL to analyse residential property sales in the project areas where we operate.

These studies, in 2010 and 2013, covered AGL’s gas plant in Camden, and showed that over the past 10 years median house prices increased at a rate of 2.6 percent per annum in Camden.

About AGL

AGL is one of Australia's leading integrated renewable energy companies and is taking action toward creating a sustainable energy future for our investors, communities and customers. Drawing on over 175 years of experience, AGL operates retail and merchant energy businesses, power generation assets and an upstream gas portfolio. AGL has one of Australia's largest retail energy and dual fuel customer bases. AGL has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, landfill gas and biomass. AGL is Australia's largest private owner and operator of renewable energy assets and is looking to further expand this position by exploring a suite of low emission and renewable energy generation development opportunities.