PROPERTY prices in the Williamtown contamination “red zone” have dropped by an average of 15 per cent, a new report has found.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The NSW Valuer General’s review of “benchmark valuations” and sales within the investigation area confirmed that values had reduced.
The report found that there have been nine sales in the investigation area since it was declared in September last year, compared to an annual average of 16 sales.
“The analysis of benchmark valuations and the available sales evidence indicated a reduction to land values was required,” the report found.
“It was determined that a 15 per cent reduction would be made to most of the land values in the investigation area.”
Port Stephens MP Kate Washington said the report showed residents inside the contamination area were “suffering financially and hurting emotionally” despite having “done nothing wrong”.
“Why should the families and businesses affected by the actions of the Department of Defence, be the ones hurting financially,” she said.
“It’s not right and it’s not fair.
“For most families living in the area, this is their primary asset. Financially, they can’t afford to leave.
“But health considerations are weighing heavily and tough decisions are being made.”
Fullerton Cove resident Lindsay Clout said the 15 per cent drop in one year was a “bad sign”.
“Defence has already told us they expect these substances to be in the environment for another 20 years,” he said.
The Newcastle Herald has previously revealed that for many home owners in the red zone restricted lending imposed by lending institutions has meant it is not possible to access lending finance.
As well, in some instances land valuers have refused to visit properties in the area because of occupational health and safety issues.
While the Valuer General report concedes “contamination and human health concerns can have negative impacts to land values” it does not specifically address bank decisions.
“While the extent of the contamination is currently being assessed, the inclusion of a property in an investigation area has the potential to negatively impact land values,” the report stated.
It comes as the Department of Defence prepares to hold two community walk-in sessions to updates residents on the environmental investigations.
The two sessions on Wednesday will be at the Murrock Cultural Centre on Nelson Bay Road, Williamtown.
The first session is from 10am to 1pm, the second is from 4pm to 7pm.