New rating valuations for Christchurch
Property owners in Christchurch City will soon receive a new Notice of Rating Valuation in the post.
The new rating valuations have been prepared for 180,433 properties on behalf of Christchurch City Council by Quotable Value (QV). Their careful analysis shows the total ratable value for the city is now $170.86 billion, with the land value of those properties now valued at $86.05 billion.
On average, the value of residential housing has increased by 47.3% since the district’s last rating revaluation in 2019, with the average house value now sitting at $774,000. The corresponding land value has also increased by 77.2% to a new average of $420,000 over the same period.
QV Canterbury Manager and lead valuer Brendon McCurley commented: “Like much of the rest of the country, we’ve seen significant growth in Christchurch’s residential property market from the end of 2020 and throughout 2021, which was primarily been driven by record low interest rates and a shortage of listings.
“That growth slowed and then began to fall in 2022 due to increasing inflation and rising interest rates, but local property values at our effective date of valuation of 1 August 2022 are still well above the previous 2019 level.”
The local commercial and industrial sectors have had comparatively moderate increases across the city. Commercial property values increased by 23.2% on average, and property values in the industrial sector have increased by 26.3% since the city’s last rating valuation. Commercial and industrial land values have also increased by 34.2% and 27% respectively.
Meanwhile, the average capital value of an improved lifestyle property has increased by 51.4% since 2019 to $1,640,000, while the corresponding land value for a lifestyle property has also increased by 74.4% to $895,000.
Lifestyle properties saw a greater value increase than residential properties in the three years to August 2022. “The demand for land drove much of this increase around the city and on the Peninsula. Smaller pastoral blocks with lifestyle influence, or with potential for subdivision into lifestyle, saw higher increases due to this buoyant lifestyle market,” Mr McCurley said.
Residential housing value changes since 2019 revaluation levels
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 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 August 2022, 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 16 March 2023.
Find out more about the rating revaluation and objection process.