Consultant Report - Investigation into the Discount Rate used for determining rentals for Domestic Waterfront Occupancies - October 2011

IPART commissioned LPI to review the discount multiplier used in the formula to determine rents for domestic waterfront tenancies (or 'occupancies'). This report presents LPI's findings and recommendations on the discount multiplier. This multiplier is intended to reflect the difference in value between precinct statutory land values, which are largely based on the statutory land values of privately owned freehold waterfront property, and adjacent publicly owned land below the mean high water mark. LPI's report has been used by IPART to inform its review of the method for determining rents for domestic waterfront occupancies in NSW. Occupancies are arrangements whereby owners of residential waterfront properties pay rent to the NSW Government to occupy and use publicly-owned submerged or reclaimed land, which is usually adjacent to their property.