New rating valuations on the way for Clutha District
Clutha District property owners will soon receive new three-yearly rating valuations in the post.
Updated values have been prepared for all 11,865 properties in the district by independent valuers Quotable Value (QV) on behalf of Clutha District Council. They reflect the likely price a property would have sold for on 1 September 2023, not including chattels.
Since the district’s last revaluation in 2020, the value of residential housing has increased by an average of 25%. The average house value is now at $403,000, while the corresponding average land value has increased by 41% to a new average of $138,000.
QV South Island Revaluation Manager Melanie Halliday commented: “Although markets are still fairly subdued across the board in Clutha District, record-low interest rates helped to drive significant value growth in 2021, before experiencing a very quiet 2022 with subtle declines. It’s generally improved since mid-2023 with modest value growth resuming.
“Properties in the smaller townships have seen the most value growth over the last three years, but this largely reflects a generally lower value base to begin with. Demand for property is greatest in the most desirable lifestyle locations with good proximity to Dunedin, such as Waihola and Taieri Mouth.”
The average capital value of an improved lifestyle property has increased by 35% to $546,000, while the corresponding land value for a lifestyle property increased by 55% to $268,000. “Clutha's lifestyle market has seen strong growth since 2020, with its relatively low price point by national standards appealing to those wishing to begin lifestyle living or downsizing from larger farm operations,” Mrs Halliday added.
Meanwhile, commercial property values have increased by 24% and property values in the industrial sector have increased by 26% since the district’s last rating valuation in 2020. Commercial and industrial land values have also increased by 27% and 28% respectively.
Forestry saw the largest value growth despite a challenging year for the industry the local rural sector, with a 41.5% average increase in capital values compared to pastoral increase of 12% and 10% for dairy.
“Rural markets are fairly subdued through 2023, with pressures on new forestry regulations, commodity prices and rising interest rates. However, there has been some market movements observed from the 2020 levels, driven by the forestry conversion of suitable pastoral holdings from both corporate and private investors,” said QV Registered Valuer Ian Harvey.
The total rateable value for the district is now $10.76 billion, with the land value of those properties now valued at $6.8 billion.
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 2023, 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 18 April 2024.
