New rating valuations for Central Hawke’s Bay
Central Hawke’s Bay 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 8,055 properties on behalf of the Central Hawke’s Bay District Council by Quotable Value (QV). They show the total rateable value of the 8,055 properties within the district is now $9,126,287,050, up 54.3% from three years ago, with the land value of those properties now valued at $5,939,140,800, an increase of 61.7%.
QV’s Hawke’s Bay regional manager Andrea Christie commented: “We have seen the biggest shift in values across the district in many years, so it’s important to remember that a large increase in your rating valuation won’t always correlate to an equally large increase in your rates. Rating values are just one of a number of factors councils use to allocate rates, and the total amount of rates required for the district does not change because of the revaluation of the district.”
She said residential properties and vacant land had been in “red-hot demand” since Central Hawke’s Bay’s last rating revaluation in 2018, with residential land values increasing by 128.5% over that time. “It’s primarily been driven by strong demand and relative affordability within the wider Hawkes Bay region. We have also seen an increase in prospective purchasers looking for blocks with development potential, in both urban and rural localities.”
Most commercial and industrial properties have also seen a positive shift in value growth, despite the challenges faced in a COVID-19 environment. The average capital value for developed commercial property increasing by 50.4% since the previous rating revaluation in 2018, and the average capital value for developed industrial property increasing by 39.8% over the past three years.
“Generally speaking, the strongest increases have been in well presented, modern properties with good earthquake ratings. Typically, seismically challenged properties have not sold as well due to the ever increasing costs to strengthen,” Miss Christie said.
Meanwhile, the value of pastoral units increased by an average of 42% since the district’s previous 2018 revaluation, with dairy blocks experiencing a lower increase of 20% increase.
“There is continued demand for quality farms that are well located and have a good balance of contour with finishing ability. A notable observation was the continuing trend of traditional hill properties, with land suitable for planting being sold for woodlot/carbon purposes,” Miss Christie added.
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 2021, and do not include chattels. Any changes in the market since then, won’t be included in the new rating valuations, which means a sale price achieved in the market today may be different to the new rating valuation set as at 1 September 2021.
The updated rating valuations have been independently audited by the Office of the Valuer General to ensure they meet rigorous quality standards before being certified. Rating valuations are designed to reflect the likely selling price of a property at the effective revaluation date and are not intended to be used as market valuations for raising finance with banks or as insurance valuations.
With the new rating values now released, a schedule of new values is available in hard copy from the Central Hawke’s Bay District Council office, as well as QV’s website at www.qv.co.nz. Sales information is also available on the QV website to allow ratepayers to research local sales and valuations.
New rating values will be posted to property owners after Wednesday, 30 March 2022. If owners do not agree with their new rating value, they have the right to object before 10 May 2022 by heading to the QV website or council’s offices. Council rates will be updated based on the new 2021 rating valuations from 1 July 2022.
Find out more about the rating revaluation and objection process.
