New rating valuations on the way for Napier
Napier property owners will soon receive new three-yearly rating valuations in the post or via email.
Updated values have been prepared for all 26,857 properties in the district by independent valuers Quotable Value (QV) on behalf of Napier City Council. They reflect the likely price a property would have sold for on 1 October 2023 not including chattels.
Since the district’s last revaluation in 2020, the value of residential housing has increased by an average of 17%. The average house value is now at $776,813 while the corresponding average land value has increased by 24% to a new average of $376,611
QV Hawke's Bay manager Damian Hall 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 and much of 2023.
“We’ve witnessed a strong increase in residential property value levels overall since our last revaluation in Napier in 2020. Though property values softened over the past 18 months or so, they’re not yet back to their pre-pandemic levels and have even begun to experience more slow but steady growth,” he said.
“Properties at the more affordable end of the ladder have seen the most competition from first-home buyers, who remain the most active group in the market today, and have therefore experienced good growth up to the $650,000 mark since 2020. The top end of the market has also held strong, especially in areas such as Ahuriri, Westshore and pockets on Napier Hill.”
The average capital value of an improved lifestyle property has increased by 30% to $1,555,190, while the corresponding land value for a lifestyle property increased by 33% to $771,599. “Napier’s lifestyle market has seen strong growth since 2020 – particularly the higher end of the market on the outskirts of the city. These properties are generally much larger in dwelling and land size, with close proximity to local amenities being considered very desirable, Mr Hall added.
Meanwhile, commercial property values have increased by 20.4% and property values in the industrial sector have increased by 30.1% since the district’s last rating valuation in 2020. Commercial and industrial land values have also increased by 20.3% and 27.5% respectively.
Horticulture continues to dominate the local rural sector, with a 12.8% average increase in capital values compared to pastoral, which has fallen 5%. “We note some of these areas were affected by cyclone Gabrielle and values have been impacted as a result,” Mr Hall concluded.
The total rateable value for the district is now $25.1 billion, with the land value of those properties now valued at $12.1 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 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 October 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.
