Kāpiti Coast residential rating valuations climb 29.1% since 2017
Kāpiti Coast District property owners will soon receive a 2020 Notice of Rating Valuation in the post with an updated rating value for their property.
The new rating valuations have been prepared for 26,134 properties on behalf of the Kāpiti Coast District Council by Quotable Value (QV). They show the total rateable value for the district is now $20,092,493,000 with the land value of those properties now valued at $10,946,834,000.
Rating valuations are usually carried out on all New Zealand properties every three years to help local councils set rates for the following three-year period. They reflect the likely selling price of a property at the effective revaluation date, which was 15 August 2020, and do not include chattels.
On average, the value of residential housing has increased 29.1% since 2017 with the average house value now sitting at $711,465, while the corresponding average land value increased by 50% to an average of $389,708.
QV Area Manager Paul McCorry commented: “The residential market on the Kāpiti Coast has continued unabated since COVID-19. Whilst values have risen almost 30% over the last three years, our analysis shows we have seen over 5% growth on average since the end of the nationwide lockdown.”
“The most affordable areas have seen the greatest increase; for instance, values in Otaki have increased by 39.2% with the corresponding land values up 75.8%. Another trend we have seen emerge recently is a northward sprawl of value with buyers chasing value for money up the coast.”
“There is high demand throughout the district, record low interest rates and low stock – all factors creating upward pressure on the local housing market. Combined with relative affordability compared to the rest of the Wellington region, property on the Kāpiti Coast is in hot demand.”
Meanwhile, commercial property values have increased by 21.3%, and property values in the industrial sector have increased by 27.6% since the district’s last rating valuation in 2017. Commercial and industrial land values have also increased by 35.4% and 37.6% respectively.
“The commercial and industrial market in the district has been a really solid performer over the last three years,” said Mr McCorry. “Low vacancy in Paraparaumu is underpinning rental levels here, and retailers have indicated that increasing numbers of Wellington commuters are working from home, shopping locally and supporting local business.”
“Elsewhere, there is good demand for industrial land and for good quality modern industrial premises. A key factor in the resilience of the commercial and industrial market on the Kāpiti Coast is a non-reliance on international travellers – the region benefits from the domestic tourism market which is strong due to the border closures.”
Graph: Residential housing value changes since 2017 revaluation levels
Since 2017, the average capital value of an improved lifestyle property has increased by 26.4% to $1,104,855, while the corresponding land value for a lifestyle property increased by 45.1% to $590,549.
“There is a smaller rural sector underpinned by the lifestyle market that has always had a higher average value due to typically larger homes on larger blocks. Again, the spread of value increases is heading northwards in search of value for money,” Mr McCorry added.
It is helpful to remember the effective rating revaluation date of 15 August 2020 has passed and any changes in the market since then will not be included in the new rating valuations.
This means in many cases a sale price achieved in the market today may be different to the new rating valuation set as at 15 August 2020 and that rating valuations are not designed to be used as market valuations for raising finance with banks or as insurance valuations.
The updated rating valuations are independently audited by the Office of the Valuer General and need to meet rigorous quality standards before the new rating valuations are certified.
New rating values will be posted to property owners after 28 October 2020. If owners do not agree with their rating valuation, they have a right to object through the objection process before 4 December 2020.