New rating valuations on the way for Central Otago
Central Otago District Council property owners will soon receive new three-yearly rating valuations in the post.
Updated values have been prepared for all 16,070 properties in the district by independent valuers Quotable Value (QV) on behalf of Central Otago District Council. They reflect the likely price a property would have sold for on 1 September 2025, not including chattels.
The total rateable value for the district is now $23.84 billion, an increase of 23.8%, with the land value of those properties now valued at $11.20 billion, an increase of 7.5%. The Capital Value change has been heavily influenced by a review of the valuation methodology of hydro assessments throughout the district and excluding this the district had a Capital Value change of approximately 8.1%.
“Central Otago has remained relatively stable since 2022 despite varying economic conditions,” Lead Valuer, Tim McCaw said. “Steady population growth has supported modest value increases across much of the district, with Cromwell and surrounding areas seeing additional pressure from buyers moving out of the Queenstown Lakes District.”
Residential property, which makes up the largest share of value in Central Otago, increased by an average of 9.0% in capital value and 8.1% in land value since 2022. Alexandra capital values increased on average by 5.74% while Cromwell increased 14.23%. Most residential settlements increased around 5-10% in capital value except for Clyde and Naseby. Clyde’s capital values remained virtually the same as 2022 with an average value change of 0.21%. “The reality is many older properties may have seen a modest decrease since 2022 and well located or modern homes are likely to see a small increase,” Mr McCaw added.
“First home buyers and relocators were the main driving force in the residential market this revaluation with the $800,000-and-under segment seeing the strongest activity. Clyde market has been influenced by a downturn in holiday home buyers, as well as having higher values than Alexandra, limiting first home buyer activity in the town. Naseby observed less growth for similar reasons. Cromwell, which sits at a higher value level again, saw growth and demand at entry level brackets as well as modern and good quality homes. Population growth is occurring across the district, offering better affordability for people priced out of Queenstown Lakes or just seeking the lifestyle change that Central Otago offers,” South Island Revaluation Manager Melanie Halliday said.
Commercial markets were mixed, with rents generally showing modest increases and upward pressure on yields since 2022. Overall, capital values increased by an average of 5.9%, while land values rose 2.6%. Demand was greatest on modern facilities with good tenancies in place. Industrial demand has continued showing 14.9% increases and 18.5% on land values, with Cromwell seeing high industrial development and good investment demand for modern property and Alexandra seeing larger land value increases from a lower base.
The lifestyle market has adjusted to the growth it experienced through 2021 and 2022 and has settled at a level accepted by the market, although the Cromwell area through to Luggate continues to grow with demand spilling out from Queenstown and Wanaka. Good quality improvements and the cost to build are well reflected in the market in all locations. High amenity sites amongst the Central Otago landscape hold high values in rural areas that have not been well represented in the market until recently. On average, capital values have increased by 8.9% and land values have shown an increase of 8.8%.
The pastoral sector had been subdued through very poor economic conditions in 2023 and 2024 before a more positive shift in sentiment into the spring of 2025. The market has been strengthened by a shift to record high commodity prices for sheep and beef sectors but this is yet to be reflected by increased values, although this sector is gaining momentum. Amenity type factors are becoming more of a consideration for pastoral properties with a strengthened lifestyle market and alternate land uses being explored. Overall, capital values have increased 4.4% and land values have increased 4.6% on average since 2022. This increase in the total values is largely influenced by pastoral properties in the Cromwell and Tarras surrounds, with the wider district showing similar values to those applied in 2022.
Meanwhile, the dairy sector continues to operate in line with the wider lower South Island. This has shown an increase in capital values of 5.7% and land values have increased 6.2% on average.
Further data improvements have been undertaken for irrigation scheme reliability and individual allocations for rural properties where possible. This has resulted in a variance of value movement for individual properties in the Ida and Maniototo valleys which would otherwise show little change.
The horticulture market continues to be subdued amidst challenging climatic and financial conditions. Land values are underpinned by a strong lifestyle market. Cherry orchards are under the most pressure with an extended period of low buyer presence and poor economic/climatic conditions. Viticulture is partially influenced by domestic and international pressures although the market continues to be somewhat stable due to the wider appeal of Central Otago, especially those with strong cellar door sales and where they are situated in strategic locations. Overall, horticulture assessments showed a capital value increase of 5.9% and a land value increase of 7.5% on average since 2022.
Central Otago is becoming an area of interest for large projects and alternate land uses such as solar farms, gold mines, airports and large greenfield subdivisions. This is particularly relevant to the Cromwell surrounds including Bannockburn through to Tarras but has impacts over the wider district.
What are rating valuations?
Rating valuations are usually carried out on all New Zealand properties every three years to help local councils assess 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 September 2025, 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 the 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.
New rating values will be posted to property owners after 18 March 2026. If owners do not agree with their rating valuation, they have a right to object through the objection process by 24 April 2026.
