New rating valuations for Whanganui District
Property owners in Whanganui will soon receive a Notice of Rating Valuation in the post with an updated rating value for their property.
The new rating valuations have been prepared for 22,316 properties on behalf of the Whanganui District Council by Quotable Value (QV). Careful analysis shows the total rateable value for the district is now $15.5 billion, with the land value of those properties now valued at $7.9 billion.
On average, the value of residential housing has increased by 53% since 2019, with the average house value now sitting at $522,000. The corresponding average land value has increased by 96% for an average of $247,000.
QV Property Consultant and Lead Valuer Simon Willocks commented: “Whanganui hasn’t been immune to the significant value growth seen nationwide in recent years, which was primarily driven by record low interest rates. Though that growth has fallen away from the height of the market, values remain well above where they were at the previous rating valuation in 2019.”
The local commercial and industrial sectors saw largely similar increases across the district. Commercial property values increased by 52% on average, and property values in the industrial sector have increased by 58% since the district’s last rating valuation. Commercial and industrial land values have also increased by 91% and 94% respectively.
Since 2019, the average capital value of an improved lifestyle property has increased by 63% to $900,000, while the corresponding land value for a lifestyle property increased by 77% to $442,000. Mr Willocks said the strength of lifestyle market, typically aligned with high-end residential properties.
“The latest rural data, shows land value increases in the north of the district are ahead of already higher valued rural land closer to Whanganui,” he added.
Whanganui District Council chief financial officer Mike Fermor commented: “Some people may worry that a 53% percent increase in their property value means a 53% percent increase in rates. That’s actually incorrect.
“When the council goes through the rates setting process each year we work out the total cost to provide services and facilities (like swimming pools, sportsgrounds, libraries and parks) on behalf of our community – this is the amount we need to collect in rates.
“External factors that influence what we need to charge for rates are things like inflation, interest rate rises and supply chain issues, not property values. The amount it costs to run our district doesn’t change because property values change.
“What the revaluation can change is the size of your ‘piece of the pie’ compared to others."
What are rating valuations?
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 October 2022, and do not include chattels.
It is helpful to remember that any changes in the market since that time will not be included in the new rating valuations. Often this means that a sale price achieved in the market today will be different to the new rating valuation set at 1 October 2022.
The updated rating valuations are independently audited by the Office of the Valuer General and need to meet rigorous quality standards before the new rating valuations are certified. They are not intended to be used as market valuations for raising finance with banks or as insurance valuations.
New rating values will soon be 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 April 2023.
Find out more about the rating revaluation and objection process.