New rating valuations on the way for Stratford
Stratford property owners will soon receive new three-yearly rating valuations in the post.
Updated values have been prepared for all 5,434 properties in the district by independent valuers Quotable Value (QV) on behalf of Stratford 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 29.8%. The average house value is now at $445,000, while the corresponding average land value has increased by 53.1% to a new average of $195,000.
QV Taranaki manager Andrew Jaques 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 midway through 2022 towards the end of 2023.
“We’ve witnessed a strong increase in residential property value levels overall since our last revaluation in August in 2020. Though property values have softened over the past 18 months or so, they’re not yet back to their pre-pandemic levels and only appear to be levelling out now,” 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 some of the largest average value increases since 2020 — especially in and around the Stratford township. Higher value residential properties are staying on the market and taking longer to sell.”
The average capital value of an improved lifestyle property has increased by 38.8% to $654,000, while the corresponding land value for a lifestyle property increased by 34.5% to $329,000.
“Stratford’s lifestyle market has seen strong growth since 2020. Demand continues to remain strong with its relatively low price point by national standards and when compared with neighbouring New Plymouth District lifestyle properties,” Mr Jaques said.
Meanwhile, commercial property values have increased by 31.8% and property values in the industrial sector have increased by 34.0% since the district’s last rating valuation in 2020. Commercial and industrial land values have also increased by 31.9% and 41.9% respectively.
The rural sector has shown a pastoral increase of 34% and 2.9% for dairy. “Overall land prices have softened slightly for larger (economic) sized dairy farms. In contrast to this, we are seeing a substantial increase in smaller blocks under 30 hectares,” Mr Jaques added.
The total rateable value for the district is now $4.6 billion, with the land value of those properties now valued at $2.73 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 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 19 January 2023.
Find out more about the rating revaluation and objection process.