Heritage Notation Assessment

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Property Values

The affects of Heritage notation orders
Detailed analysis
23rd April 2012

Contents
Abstract Introduction What is Heritage Significance? What is a Heritage notation order? What are the benefits of heritage listing? What does a heritage listing entail? How is the community affected? What are the disadvantages of heritage listing? The role of local government planning. The role of the Commonwealth. The positive impact of heritage listing on value. The negative impact of heritage listing on value Conclusion References 3 4 5 5 7 8 8 9 11 12 12 13 14 15

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Property Values

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Abstract
When determining Heritage property values, multiple factors must be taken into consideration both general and specific. General factors may include zoning, planning overlays, types of surrounding properties, general amenities, alternative property use, tenancy opportunities returns, current socio-economic conditions, size of property and the quality of the building. Specific factors may include prestige associated with ownership, maintenance, building efficiency, refurbishment costs and operational costs and perception of risk. When considering demand for heritage-listed properties, there are buyers in the marketplace who are prepared to pay a premium for properties of heritage significance whilst there are some who will not even consider the property due to heritage listing. The impact on value of a heritage-listed property can be two ways, both positive and negative. These are the initial effects associated with the action of heritage- listing and the subsequent change in values over time. Available data, both locally and internationally indicate that on a macro level a heritage listing on a property is not a significant factor in determining property value, either at the time of listing or afterwards. However, there are individual cases where the effects are more significant, either positive or negative. The initial effect is often dependent on the stage of the property market. When the market is in a strong up cycle the incentive for redevelopment increases the land value relative to the incumbent building value. In such a climate, the effect of heritage listing may have some impact. However, the impact will largely depend upon the capacity to redevelop the specific property without compromising its heritage significance. A total demolition would be off the cards, but a redevelopment of the existing properties such as a face-lift would give an increase in value.

Property Values

3

Introduction
It is often troublesome to estimate the effects of heritage listing on the value of a property since heritage controls do not prohibit development, subdivision or demolition but require that approval be obtained. Where there is some capacity to develop the particular place and achieve additional development on the land without seriously compromising the heritage significance of the place, the impact on values may not be as great as where the capacity for further development is more limited. The impact of a heritage notation on a property is commonly mistaken as a bad contribution to the value of the property. The following information will detail how the heritage-listing associated with a property affects the properties value, positive and negative, taking into account all necessary factors. The report will include and give information on what Heritage significance is, what a Heritage notation order is, and how it affects the value of a listed property. Also covered by the report will be the benefits to buying a heritage property, the disadvantages of buying a heritage property, the community impact of heritage listing being associated with a property, also what the heritage listing entails. The role of both local councils, the Commonwealth and how the State Heritage List is associated with a particular heritage listed property will also be inclusive. More often these days,...
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