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

AGL has welcomed a NSW Valuer General’s study released yesterday which 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 Gloucester where AGL has approval for Stage 1 of the Gloucester Gas Project.

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”.

The study stated that sales evidence in Gloucester regarding the impact of coal seam gas couldn’t be separated from mining.

However, local property experts reported potential purchasers’ main concern was the proposed mine.

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

“The NSW Valuer General’s study 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 Gloucester 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 Gloucester project and showed that over the past 10 years median house prices have increased at a rate of 5.2 percent per annum in Gloucester.

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.