New rating valuations on the way for South Taranaki
South Taranaki property owners will soon receive new three-yearly rating valuations in the post.
Updated values have been prepared for all 15,445 properties in the district by independent valuers Quotable Value (QV) on behalf of South Taranaki District Council. They reflect the likely price a property would have sold for on 1 September 2024, not including chattels.
Since the district’s last revaluation in 2021, the value of residential housing has decreased by an average of 0.4%. The average house value is now at $402,000, while the corresponding average residential land value has decreased by 18.8% to a new average of $162,000.
QV registered valuer Andrew Jaques commented: “2021 to 2022 saw the majority of properties increasing above the previous revaluation. Then from 2022 onwards we saw values slowly decrease to just under the previous rating value levels. This was caused by rising interest rates and a general increase in the cost of living.”
“South Taranaki’s residential property market has now stabilised and is showing sustained value levels once more,” he added.
The average capital value of an improved lifestyle property has increased by 4% to $580,000, while the corresponding land value for a lifestyle property decreased by 0.7% to $340,000.
“Lifestyle properties have followed a similar trend to the residential market. However, a drop off in land values has been more subdued due to the relatively low level of vacant lifestyle blocks in the district,” said Mr Jaques.
Meanwhile, commercial property values have experienced a slight increase of 1.6% and property values in the industrial sector have increased by 20.9% since the district’s last rating valuation in 2021. Commercial and industrial land values have also decreased by 14.7% and 8.6% respectively.
The total rateable value for the district is now $14.4 billion, with the land value of those properties now valued at $8.9 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 September 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 20 December 2024.
