New rating valuations on the way for Grey District
Grey District property owners will soon receive new three-yearly rating valuations in the post.
Updated values have been prepared for all 9,234 properties in the district by independent valuers Quotable Value (QV) on behalf of Grey District Council. They reflect the likely price a property would have sold for on 1 September 2024, not including chattels.
Since the district’s last revaluation in 2021, the value of residential housing has increased by an average of 30%. The average house value is now at $439,000, while the corresponding average land value has increased by 52% to a new average of $162,000.
“Grey’s residential housing market has experienced steady growth year on year across a range of price brackets since out last revaluation in 2021,” said QV valuer Jeremy Clayton.
“The relative affordability of the Grey District housing market means that value levels have fared relatively well by national standards. Whereas other parts of the country are seeing values fall, Grey has still seen overall growth since 2021.”
The average capital value of an improved lifestyle property has increased by 26% to $517,000, while the corresponding land value for a lifestyle property increased by 22% to $257,000.
“Lifestyle properties typically align in value with high-end residential properties and this segment of the market has been strong. The relatively low price point by national standards appeals to those wishing to begin lifestyle living,” Mr Clayton added.
Meanwhile, commercial property values have had steady increase of 12% and property values in the industrial sector have increased by 12% since the district’s last rating valuation in 2021. Commercial and industrial land values have also increased by 9% and 12% respectively.
The value of most dairy and arable farms has risen since 2021, with dairy farm values increasing by 5.7%. Farms with strong infrastructure, reliable water supplies, and minimal environmental restrictions are in high demand. Conversely, properties lacking these features are being valued lower.
On average, pastoral properties have experienced a 29% increase in value since 2021 – though this varies based on individual property characteristics.
“Properties capable of supporting dairy activities have seen a rise in value, depending on their level of dairy support. In contrast, properties with no potential for dairy activities have slightly decreased in value due to low product prices,” Mr Clayton said.
The total rateable value for the district is now $5.062 billion, with the land value of those properties now valued at $2.372 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 2024, 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 3 February 2025.
