Marlborough residential rating values up 22.6%
New rating valuations show the average house value in the Marlborough district is now $559,000 – an increase of more than 20% since the district’s last rating valuation in 2017.
QV’s team of registered valuers recently prepared 27,118 new rating valuations on behalf of Marlborough District Council. They show the total rateable value for the district is now $23,563,000,000 with the land value of those properties now valued at $11,840,000,000.
QV valuer Richard Kolff commented: “The demand for residential housing was buoyant across the region, with most townships in the district seeing increases of between 15-25% overall. Demand for sections has also been strong and, as a result of limited supply, land values have increased 37% for the district overall.”
“The district has a healthy local economy that is well supported by wine production, agriculture and forestry industries. This has flowed through to the housing market, and combined with very low interest rates and high demand, the market has continued to thrive. Lower value properties have seen the most competition from buyers and has seen the greatest value increases.”
House value movements by location:
Meanwhile, commercial property values have increased by 5.7%, and property values in the industrial sector have increased by 14.7% since the district’s last rating valuation in 2017. Commercial and industrial land values have also increased by 13.7% and 23.7% respectively.
“Retail and office properties have seen lower increases in value than the residential property market,” said Mr Kolff. “While locals and domestic tourists have been very good at supporting businesses, this has been offset to some degree by online competition for retailers and the start of a post-lockdown trend of more people working from home, resulting in less demand for office space.”
Since 2017, the average capital value of an improved lifestyle property has increased by 16.7% to $864,000, while the corresponding land value for a lifestyle property increased by 18.5% to $399,000.
“Lifestyle properties typically align in value with high-end residential properties. This segment of the market has seen a more modest increase in values than the residential market overall,” Mr Kolff added.
What are rating valuations?
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 in Marlborough’s case was 15 August 2020, and do not include the value of chattels (furniture, appliances, etc.).
They haven’t been designed to be used as market valuations for raising finance with banks or as insurance valuations. They are independently audited by the Office of the Valuer General and need to meet rigorous quality standards before the new rating valuations are certified.
The Marlborough district’s effective rating revaluation date has passed, so any changes in the market since then won’t be included in the new rating valuations. This often means a sale price achieved in the market today may be totally different to the new rating valuation.
New rating values will be posted to property owners from 11 December 2020. If owners don’t agree with their rating valuation, they have a right to object through the objection process before 5 February 2021.
Find out more about the rating revaluation and objection process. Homeowners can also go to the Marlborough District Council website for further information.