New rating valuations on the way for Tararua
Tararua property owners will soon receive new three-yearly rating valuations in the post.
Updated values have been prepared for all 11,173 properties in the district by independent valuers Quotable Value (QV) on behalf of Tararua 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 26.5%. The average house value is now at $400,000, while the corresponding average land value has increased by 52.7% to a new average of $170,000.
QV Manawatu manager Simon Willocks commented: “It has been a volatile property market over the last three years, with record-low interest rates helping to drive significant value growth in 2021, before experiencing a long period of decline throughout 2022 and 2023.”
“Properties in the smaller townships such as Woodville and Eketahuna have seen the most value growth over the last three years, which reflects the fact that these areas typically had lower base value levels to begin with, and Woodville has the added influence of the new highway awaiting completion.”
Commercial and industrial property values have increased by an average of 12.3% and 12.9% respectively since the district’s last rating valuation in 2020.
Meanwhile, the rural market fell through 2023 from earlier highs, but remains ahead of the 2020 values with the average capital value increases of 24% for pastoral land, 17.5%. for dairying and 23% for forestry.
“Increasing farm costs – including debt servicing, together with falling farm gate prices – has eroded the number of buyers in the market,” Mr Willocks added.
The total rateable value for the district is now $9.3 billion, with the land value of those properties now valued at $6 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 3 May 2024.
