New rating valuations on the way for Southland
Southland property owners will soon receive new three-yearly rating valuations in the post.
Updated values have been prepared for all 20,863 properties in the district by independent valuers Quotable Value (QV) on behalf of Southland 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 19%. The average house value is now at $532,000, while the corresponding average residential land value has increased by 19.7% to $205,000.
Residential properties in Te Anau saw the largest value movement for the larger towns at a 26% increase in average residential capital value, compared to 8% in Winton and 12% for Riverton.
QV registered valuer Tim McCaw commented: “There has been a moderate shift in the values of lifestyle and urban property, capturing the growth seen in the wider market since mid 2021 and early 2022. Interest rates and the cost of living have restricted the wider market since this initial market movement. However, Southland’s market has been resilient with limited dampening from this due to its lower value base.”
The average capital value of an improved lifestyle property has increased by 21.2% to $718,000, while the land value for a lifestyle property increased by 20.2% to $334,000.
“Lifestyle has generally followed the residential market. A key location of change against previous values was Te Anau, which had a significant increase above 2021 values for quality properties with good lake views,” Mr McCaw said.
Meanwhile, commercial property values have increased by an average of 15.1%, with values in the industrial sector also increasing by 16.4% since the district’s last rating valuation in 2021. Commercial and industrial land values have also increased by 23.5% and 23% respectively.
The rural sector (excluding forestry and mining) had an overall increase of 3.2%. This includes dairy having an increase of 7.2% and pastoral properties increasing by 0.5% over their 2021 values.
“The rural market has been impacted by a changing regulatory environment, which has made it increasingly complex. Dairy and dairy support are a preferred land use. and a tiered market has emerged for pastoral properties that have consent or existing use rights to undertake this. This has meant that there has been a wide range of value shift in similar locations where differing resource management is known,” Mr McCaw said.
“Traditional sheep and beef properties have been impacted by changing land use, poor commodity prices, strong interest rates and environmental issues. Land use change to forestry, although off the peak, is a key market factor that has held or lifted pastoral properties from 2021 values that were at a low value base. Pastoral properties not suited to dairy support or forestry are being challenged by the current market conditions.”
The total rateable value for the district is now $28.6 billion (a 10.8% increase from 2021) with the land value of those properties now valued at $19.21 billion (up 8% from 2021).
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 24 December 2024.
