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Ruapehu district residential rating valuations climb 59.2%

New rating valuations show the average house value in the Ruapehu district is now $278,000, an increase of 59.2% since 2017.

The rating valuations, which have been prepared by Quotable Value (QV) on behalf of the Ruapehu District Council and will be posted to property owners after 7 October 2020, also show average land value has increased by 86.7% to $87,000.

Commercial property values have increased by 20.8%, while the value of the industrial sector has increased by 35%. Commercial and industrial land values have grown by 56% and 77% respectively since the Ruapehu district’s last ratings revaluation in 2017.

During the same period, the average capital value of an improved lifestyle property has increased by 26.5% to $467,000, while the corresponding land value for a lifestyle property increased by 40% to $191,000.

QV valuer Simon Willocks said the total rateable value of the district’s 9,854 total properties now stands at $6,194,508,000 with the land value of those properties now valued at $3,457,603,000.

“The demand for residential housing was buoyant across all townships, with most townships in the district seeing increases of between 50-60% overall,” he said. “But Raetihi saw the biggest increase on average at over 80%.”

“There is high demand, unprecedented low interest rates and limited stock – all factors driving demand in the housing market, along with values previously being at a low base relative to much of New Zealand.”

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 are one of a number of factors councils use to allocate rates.

Any changes to the property market since the revaluation date of 15 August will not be reflected in the new rating valuations, which reflect the likely selling price of a property at that date only and does not include chattels.

Rating valuations are not designed to be used for raising finance with banks or as insurance valuations. They are independently audited by the Office of the Valuer General and need to meet rigorous quality standards before they are certified.

If owners do not agree with their rating valuation, they have a right to object through the objection process before 30 November 2020.