New rating valuations for Nelson City
Nelson City 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 22,831 properties on behalf of the Nelson City Council by Quotable Value (QV). They show the total rateable value for the City is now $22.82 billion, with the land value of those properties now valued at $12.53 billion.
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. They are not intended to be used as market valuations for raising finance with banks or as insurance valuations.
On average, the value of residential housing has increased by 42% since 2018 with the average house value now sitting at $885,000, while the corresponding average land value has increased by 73% for an average of $508,000.
Local QV Manager for Nelson/Marlborough, Craig Russell commented: “We have seen significant growth in the residential sector since 2018 which has been fuelled by record low interest rates, a shortage of listings, and strong regional migration in addition to a number of ex-pats returning. The majority of value increases has stemmed from pressure on land with Nelson’s geography making it difficult to develop land at scale. This has led to intensification with strong demand from developers for modest homes on larger easy to develop sites.”
Meanwhile, the commercial and industrial sectors have had moderate increases across the city. Commercial property values increased by 14% and property values in the industrial sector have increased by 27% since the city’s last rating valuation in 2018. Commercial and industrial land values have increased by 31% and 36% respectively.
“Nelson has a strong diverse regional economy with demand outstripping the modest supply of industrial land available locally. This combined with low interest rates has contributed to value lifts in the industrial sector,” Mr Russell added.
Since 2018, the average capital value of an improved lifestyle property has increased by 39% to $1,120,000, while the corresponding land value for a lifestyle property increased by 48% to $650,000.
Mr Russell said the strength of the lifestyle market typically aligned with high-end residential properties. “There has been good demand for established lifestyle sections north of Nelson CBD as people seek to avoid the congested commute from Waimea/Tasman, with a shortage of listings causing stronger than expected prices,” he said.
“The smaller rural sector in Nelson City had moderate value increases and are often underpinned by their location and strength of the lifestyle market. The pastoral market also showed signs of consistent growth, particularly for blocks with recreational aspects and forestry potential.”
Residential housing value changes since 2018 revaluation levels:
It is helpful to remember the effective rating revaluation date of 1 September 2021 has passed, and any changes in the market since then will not be included in the new rating valuations. This means in many cases a sale price achieved in the market today may be different to the new rating valuation set as at 1 September 2021.
Nelson City Council will use the new values as the base for setting rates from 1 July 2022. Group Manager Corporate Services Nikki Harrison, said it was important that property owners remember that a change in the rateable capital value of a property does not mean rates will change by a similar percentage.
“The revaluation does not generate any additional rates for Council. Rather, it means rates will be spread between ratepayers in different proportions than before.”
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.
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 10 March 2022.
Find out more about the rating revaluation and objection process.
Photo credit: Markus Koljonen, CC BY-SA 3.0