New rating valuations on the way for the Waitaki District
Waitaki property owners will soon receive new three-yearly rating valuations in the post.
Updated values have been prepared for all 14,552 properties in the district by independent valuers Quotable Value (QV) on behalf of the Waitaki District Council. They reflect the likely price a property would have sold for on 1 August 2023, not including chattels.
Since the district’s last revaluation in 2020, the value of residential housing has increased by an average of 24%. The average house value is now at $460,000, while the corresponding average land value has increased by 58% to a new average of $197,000.
Since the district’s last revaluation, QV Senior Consultant Baylan Connelly said Waitaki had experienced a strong property market in 2021, with record low-interest rates helping to drive growth. It began to slow and then decline towards the end of 2022, but has begun to strengthen once more.
“Overall, the market has seen moderate growth in the three years since our last revaluation in Waitaki in 2020. Though property values have softened over the past 12 months or so – particularly the first home buyers’ market – modern new-build housing has seen some strong increases, reflecting the cost to build and more demand for good quality accommodation,” he said.
“Properties at the more affordable end of the ladder have seen smaller average home value increases, which is due to higher interest rates, maintenance costs, and rising inflation making it difficult for prospective purchasers to obtain finance. On the other hand, more expensive properties further up the property ladder have been less affected by the rising cost of living, as people who are looking to retire or relocate to the region are also less impacted by ongoing economic conditions.”
The average capital value of an improved lifestyle property has increased by 33% to $700,000, while the corresponding land value for a lifestyle property increased by 35% to $340,000. “Waitaki’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 looking to retire in the area,” Mr Connelly added.
Meanwhile, commercial property values have increased by 16% 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 84% and 74% respectively.
Horticulture has seen modest value growth over the last three years with a 19% average increase in capital values and pastoral increase of 20% and 5% for dairy.
The total rateable value for the district is now $12.3 billion, with the land value of those properties now valued at $6.45 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 1st August 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 14 March 2023.