Peter Reardon – September 1, 2013
This 33-page study released by Australian real estate consultant and registered valuer, Peter Reardon, provides sales evidence demonstrating that wind farms are negatively impacting property values. Mr. Reardon’s work examined the effect of more than 3000 turbines either in operation or proposed for construction across New South Wales in Australia. The summary of the report is attached.
Summary – Overview
An initial report was undertaken in May 2012. At this time the report was completed having specific reference to the Proposed Golspie wind turbine development (located to the north east of Crookwell), with a small group of land holders headed by Mr. Paul Vallely having strong concerns as to the economic impact that wind turbine development could pose upon their adjoining or nearby rural land holdings in this locality. Our research at this time was inconclusive. As a result of further developments and some market evidence now becoming available, we have been asked to update and review our initial report having regard to these recent findings.
Due to the relative new age of wind infrastructure developments in Australia there has until recently been little market evidence available that conclusively determines the impact that this type of development can have economically on adjoining or nearby rural land holdings. A report prepared by Robert Dupont, Preston Rowe Paterson – 2009 on behalf of the N.S.W. Valuer General/Department of Lands, did not detail any conclusive evidence that adjoining or nearby rural land holdings were impacted by wind turbine development. This report did leave open the recommendation that this be reviewed in the future based upon further market evidence becoming available.
Our current research and findings indicate that this market evidence is now beginning to become available in the Southern Tablelands. Upon analysis, these sales detail a detriment in market value for properties located adjoining or within nearby distance of wind turbine infrastructure. The report has identified a detriment in property values. Discounts in value as identified of 33% & 60% in the market place cannot be ignored.
As part of our research we have also undertaken extensive communication and surveys with real estate agencies in the Southern Tablelands. The vast majority of all real estate agencies surveyed believed that the location and proximity of wind turbines can have a significant impact upon the marketability of rural land holdings especially in the form of buyer interest and extended sales periods being required. This impact alone is not something that we believe has been accurately measured neither in past studies nor by the proponents of most Wind Farm Developments.
The detrimental impact upon adjoining and/or nearby land holders appears to be beginning to be acknowledged by a number of wind turbine proponents. A notable example of this is developers in the Boorowa/ Rugby region. Enquiries have detailed that compensation deals are being offered to adjoining and nearby land holders who have a residence within 2 kilometres of wind turbines. The deals being negotiated and signed up to at this current point in time are typically $2,500 p.a. per turbine within a 2 kilometre radius of a residence, indexed for the life of the development in a similar type of agreement to those land holders that are compensated for hosting turbines on their land.