New rating valuations on the way for Masterton
Masterton property owners will soon receive new three-yearly rating valuations in the post.
Updated values have been prepared for all 13,664 properties in the district by independent valuers Quotable Value (QV), reflecting the likely price a property would have sold for on 1 September 2023 – not including chattels.
The impact these new rating valuations will have on rates for individual properties will be part of Masterton District Council’s proposed Long-Term Plan, which will be available in early April.
Since the district’s last revaluation in 2020, the value of residential housing has increased by an average of 10.3%. The average house value is now at $564,000, while the corresponding average land value has increased by 15.4% to a new average of $257,000.
QV Wellington manager Hoa Quan said it had been a “rollercoaster” last three years for the property market, with record-low interest rates helping to drive significant value growth in 2021, before experiencing a long period of decline throughout 2022, which continued until the end of May 2023.
“Masterton was one of the hottest residential markets in New Zealand throughout 2021, peaking with an average value of just under $708,000 – a 41% increase over the 2020 revaluation,” Mr Quan said.
“Though property values have softened over the past 18 months or so due to increased interest rates, they’re still above where they were at the 2020 revaluation. The market stabilised in the three months prior to the revaluation date of 1 September 2023, with no subsequent value declines being recorded.”
The average capital value of an improved lifestyle property has increased by 16.1% to $879,000, while the corresponding land value for a lifestyle property increased by 12.4% to $437,000. “Masterton's lifestyle market has seen strong growth since 2020,” Mr Quan added.
Meanwhile, commercial property values have increased by 13.8% and property values in the industrial sector have increased by 47.3% since the district’s last rating valuation in 2020. Commercial and industrial land values have also increased by 17.6% and 61.3% respectively.
“The increase for industrial properties reflects the low vacancy rate pushing up rents for industrial properties over the three-year period. Land values have reduced from their peak due to higher construction costs, but they are still significantly above their 2020 values,” said Mr Quan.
Forestry and pastoral dominate the local rural sector, with a 33.3% increase in capital values for the former and a 23.7% increase for the latter.
“The rural market was very buoyant through 2020, 2021, and peaking mid 2022 on the back of strong demand for land for forestry conversion. From early 2023, however, rural markets have been subdued, with pressures from new forestry regulations, commodity prices and rising interest rates. This has resulted in a rapid decline in farm values through 2023 – especially for pastoral properties that were previously sought after for forestry conversion – but they are still well above what they were three years ago.”
The total rateable value for the district is now $10.92 billion, with the land value of those properties now valued at $5.92 billion.
Residential housing value changes since 2020 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 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 3 May 2024.
