New rating valuations for Central Otago District
Central Otago District property owners will soon receive a Notice of Rating Valuation in the post with an updated rating value for their property.
The new rating valuations have been prepared for 15,408 properties on behalf of the Central Otago District Council by independent valuers Quotable Value (QV). Careful analysis of local housing data shows the total rateable value for the district is now $18.29 billion, with the land value of those properties now valued at $10.2 billion.
On average, the value of residential housing has increased by 38% throughout the district since 2019, with the average house value now sitting at $806,000. The corresponding average residential land value has also increased by 53% to a new average of $413,000.
QV revaluation manager (urban) Melanie Halliday commented: “Central Otago has bucked the trend of many regional centres in New Zealand in 2022, showing only a minor 3% drop in the market at the time of revaluation. Strong demand and population growth in the region underpinning property values in the region particularly for residential and lifestyle markets”
She said the local commercial and industrial sectors had experienced similar value increases across the district. Commercial property values have increased by 37% on average since the district’s last rating valuation in 2019, with property values in the industrial sector also increasing by an average of 48%. Commercial and industrial land values have also increased by averages of 66% and 87% respectively.
“Rural sectors observed more subdued growth with pastoral showing a 29% increase with rural values underpinned by a strong lifestyle market. The market for cherry orchards showed volatility after strong demand in 2019 - 2020 was experiencing a downturn in confidence at the time of revaluation compounded by challenges obtaining finance for these properties,” Mrs Halliday said.
Meanwhile, the average capital value of an improved lifestyle property has increased by 46% since 2019 to a new average capital value of $1,370,000, while the corresponding land value for a lifestyle property has also increased by 56% to an average land value of $667,000.
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 October 2022, and do not include chattels.
It is helpful to remember that any changes in the market since that time will not be included in the new rating valuations. Often this means that a sale price achieved in the market today will be different to the new rating valuation set at 1 October 2022.
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. They are not intended to be used as market valuations for raising finance with banks or as insurance valuations.
New rating values will soon be posted to property owners. If owners do not agree with their rating valuation, they have a right to object through the objection process before 21 April 2023.
Find out more about the rating revaluation and objection process.