New rating valuations for Rangitikei District
Rangitikei District property owners will soon receive a 2020 Notice of Rating Valuation in the post with an updated rating value for their property.
The new rating valuations have been prepared for 8,562 properties on behalf of the Rangitikei District Council by Quotable Value (QV). They show the total rateable value for the district is now $6,262,954,000 with the land value of those properties now valued at $4,098,957,000.
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 reflect the likely selling price of a property at the effective revaluation date, which was 1 September 2020, and do not include chattels.
On average, the value of residential housing has increased by 76.3% since 2017, with the average house value now sitting at $333,000, while the corresponding average land value increased by 140.4% to an average of $108,000.
QV valuer Simon Willocks commented: “The demand for residential housing was buoyant across all townships in the district, with average increases of between 70-85% overall. Driving that growth is high demand, low interest rates, and limited available housing stock on the market.”
Meanwhile, commercial property values have increased on average 35%, and property values in the industrial sector have increased by 48.6% since the district’s last rating valuation in 2017. Commercial and industrial land values have also increased on average 61.7% and 87.1% respectively.
“This shows a solid performance for commercial and industrial properties off what are were low starting values compared to much of New Zealand,” said Mr Willocks.
Since 2017, the average capital value of an improved lifestyle property has increased by 42.9% to $572,000, while the corresponding land value for a lifestyle property increased by 59.4% to $220,000.
He said the rural market remained strong with sustained farm gate prices and a shortage of listings driving value growth. Hill country in particular has seen significant value increase in three years, while the flat higher-valued land has had moderate increases by comparison, including dairy.
The effective rating revaluation date of 1 September 2020 has passed and any changes in the market since then will not be included in the new rating valuations. This means that often a sale price achieved in the market today may be different to the new rating valuation set at that date.
It’s also worth keeping in mind that rating valuations are not designed to be used as market valuations for raising finance with banks or as insurance valuations.
If owners do not agree with their rating valuation, they have a right to object through the objection process before 15 January 2021.