Napier house values climb 35.2%
New rating valuations show the average house value in Napier is now $655,000 – an increase of 35.2% since the city’s last rating valuation in 2017.
Our team of experienced, registered valuers has prepared new rating valuations on behalf of Napier City Council for more than 26,000 properties. They show that, on top of that large increase in residential property values, the average land value has increased by 37.1% to $304,000.
QV senior consultant Andrea Christie commented: “The demand for residential housing has been very strong since we came out of lockdown, with most residential properties seeing increases of between 30-45% since the 2017 revaluation.
“The biggest increases have been experienced in the entry-level locations where first home buyers are competing hard with investors.”
Meanwhile, commercial property capital values have increased by 30.3% with a corresponding land value increase of 76.2% since 2017. Capital values in the industrial sector have increased by 47% with industrial land values increasing 84.4% over the three-year period.
“This shows a solid performance for commercial and industrial properties which have displayed resilience throughout the challenges of lockdown,” said Miss Christie. “The industrial locations have performed particularly well with the low-interest-rate environment providing opportunities for existing tenants to become their own landlords for the first time.”
Since 2017, the average capital value of an improved lifestyle property has increased by 30.3% to $1.2 million, while the corresponding land value for a lifestyle property increased by 45.2% to $563,000.
“The market for lifestyle rural properties experienced considerable growth over the past three years and the lifestyle market strength aligns with the high-end residential increases,” Miss Christie 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 was 1 September 2020, and do not include chattels.
They are NOT 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.
Napier’s effective rating revaluation date was 1 September 2020. Any changes in the market since then – and there’s likely to be many – will not be included in the new rating valuations. This often means a sale price achieved in the market today may be different to the new rating valuation.
New rating values will be posted to property owners after 2 December 2020. If owners do not agree with their rating valuation, they have a right to object through the objection process before 22 January 2021.