New rating valuations on the way for Kaikoura
Kaikoura property owners will soon receive new three-yearly rating valuations in the post.
Updated values have been prepared for all 3,186 properties in the district by independent valuers Quotable Value (QV) on behalf of Kaikoura District Council. They reflect the likely price a property would have sold for on 1 July 2024, not including chattels.
Since the district’s last revaluation in 2021, the value of residential housing has increased by an average of 21.7%. The average house value is now at $738,000, while the corresponding average residential land value has increased by 28.2% to a new average of $357,000.
QV registered valuer Brendon McCurley commented: “While a majority of properties will be seeing an increase above their previous rating valuation, much of this value growth actually took place in late 2021 and early 2022. Following this was a downward period caused by rising interest rates and a general increase in the cost of living.”
“Kaikoura’s residential property market has now stabilised and is showing steady growth once more,” he added.
The average capital value of an improved lifestyle property has increased by 27.3% to $1,026,000, while the corresponding land value for a lifestyle property increased by 7.1% to $437,000.
“Lifestyle properties have followed a similar trend to the residential market. However, growth in land values has been more subdued due to the relatively high level of vacant lifestyle blocks in the district,” Mr McCurley added.
Meanwhile, commercial property values have had slight increase of 12.5% and property values in the industrial sector have increased by 33.4% since the district’s last rating valuation in 2021. Commercial and industrial land values have also increased by 19.2% and 46% respectively.
On average, pastoral properties have experienced a small 1.3% increase in value since 2021 – though this varies based on individual property characteristics.
The total rateable value for the district is now $2.898 billion, with the land value of those properties now valued at $1.640 billion.
What are rating valuations?
Rating valuations are usually carried out on all New Zealand properties every three years to help local councils assess rates for the following three-year period. They are not intended to be used for any other purpose, including raising finance with banks or as insurance valuations.
They reflect the likely selling price of a property at the effective revaluation date, which was 1 July 2024, and do not include chattels. Any changes in the market since that time will not be included in the new rating valuations, which often means that a sale price achieved today will be different to the new rating valuation.
Rating valuations are calculated using a highly complex and detailed process that utilises all relevant property sales from your area. A large number of properties will also be physically assessed, particularly those that have been issued building consents in the last three years.
The updated rating valuations are then independently audited by the Office of the Valuer General to ensure they meet rigorous quality standards, before the new rating valuations are confirmed and posted to property owners.
If owners do not agree with their rating valuation, they have a right to object through the objection process before 13 December 2024.