New rating valuations for Gore District Council
Gore District Council 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 6,888 properties on behalf of Gore District Council by Quotable Value (QV). Careful analysis shows the total rateable value for the district is now $5.28 billion, with the land value of those properties now valued at $2.85 billion.
On average, the value of residential housing has increased by 59% since 2019, with the average house value now sitting at $403,000, while the corresponding average land value has increased by 63% for an average of $117,000.
QV Otago/Southland manager Kylie Helman commented: “There has been a significant increase in Gore residential price levels over the past three years, largely fuelled by relaxed lending criteria and favourable borrowing rates in the months following the initial Covid-19 lockdowns.”
“The largest increases in value have been in entry level properties, with properties in the mid to upper quartiles also showing substantial value growth. Strong market conditions coupled with relative affordability have contributed to much of this. Land values in Mataura and outlying settlements have had some of the largest increases in value, albeit off a low value base in 2019.”
“Market sentiment has eased throughout 2022, but the impact on values has been minimal to date, especially in relation to the rapid growth experienced over 2020 and 2021.”
The local commercial and industrial sectors have had comparatively moderate increases across the district. Commercial property values increased by 30% on average and property values in the industrial sector have increased by 32% since the district’s last rating valuation. Commercial and industrial land values have also increased by 58% and 109% respectively.
Mrs Helman said properties located within in Gore’s central business district have observed the largest value shifts, predominantly due to a shortage of good investment property and land available to the market. “Investor preference is for low risk investment, with less demand for older style commercial premises due to earthquake strengthening requirements.”
Meanwhile, the average capital value of an improved lifestyle property has increased by 43% since 2019 to $848,000, while the corresponding land value for a lifestyle property increased by 49% to $279,000. “Demand remains strong within the lifestyle market, even following some cooling off of values within the residential sector. The largest percentage increase in values have been observed on outer lying property from a lower value base in 2019.”
The latest data also shows that dairying has increased by 13% and pastoral 14% in capital value since 2019. “Dairy values have strengthened on the back of strong commodity prices, despite a higher cost structure, while smaller pastoral unit values have strengthened, which reflects the strong lifestyle market as well as demand for land suitable for conversion to forestry,” Mrs Helman added.
Residential Average Residential House Value:
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 July 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 complex and highly 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 3 November 2022.
Find out more about the rating revaluation and objection process.