Clutha District Council and QV Media Release
Monday, 11 December 2017
Steady value increases seen across Clutha District over the past three years
The Clutha District Rating Revaluation for 2017 is now confirmed and property owners will soon receive a 2017 Notice of Rating Valuation with an updated rating value for their property.
The new rating valuations have been prepared for 11,975 of properties on behalf of the Clutha District Council by Quotable Value (QV).
Rating valuations are carried out on all properties in New Zealand, usually once every three years to specifically help local councils set rates for the following three year period. Rating values are just one of a number of factors councils use to allocate rates. Council rates will not be updated based on the new 2017 rating valuations until 1 July 2018.
The updated rating valuations should reflect the likely selling price of a property at the effective revaluation date, which was 1 September, 2017, but do not include chattels.
The rating revaluation figures compiled by QV show the total ratable value of the 11,975 properties within Clutha District Council is now $8.18 billion with the land value of those properties now valued at $5.5 billion.
QV Senior Consultant, Tim Gibson said the whole of Clutha District has seen moderate increases within the residential market over the past three years. Within Clutha the majority of the growth has occurred over 2016 and continued into 2017. The continuation of low interest rates and overall confidence within the residential sector has been a driver in value growth after a long period of static movement since the Global Financial Crisis of 2007.
Average Dwelling Value as at 1/9/2017
Average Dwelling Value Change % since 1/9/2014
Further information on how Clutha residential property values compare to other districts and to all of New Zealand can be found at www.qv.co.nz/property-trends/residential-house-values.
Commercial and industrial properties have also seen value increases, with the average capital value for developed commercial property increasing by 9.6 % since the last rating revaluation in 2014, and the average capital value for developed industrial property increasing by 5.6 % over the past three years, Mr Gibson added.
“Rural and lifestyle properties have also seen values increase since 2014 with the average improved lifestyle property capital value increasing by 11.4 % to $305,000 with the corresponding average land value for a lifestyle property increasing by 9.8 % to $135,000.”
Pastoral properties have seen on average a 9.2% increase to their capital values and dairy properties having seen a 1.8% increase in Capital Values.
Tim Gibson said commercial and industrial value levels within Balclutha have seen a moderate lift along with Tapanui and Waihola.
The other small provincial centres have seen limited growth with most 2014 value levels retained mainly driven by a lack of demand for commercial and industrial investment properties in the smaller centres due to perceived high risk in retaining tenants and obtaining any rental increases.
Within the rural sector the pastoral market is showing a slight lift in values from the 2014 levels on the back of good beef and lamb prices and continued low interest rates. A lot of the sales that have occurred have been for farm enlargement. Overall the dairy sector is showing little change over the 2014 levels with continued uncertainty around the dairy payout level a contributor.
It is helpful to remember the effective rating revaluation date of 1 September, 2017 has passed and any changes in the market since then won’t be included in the new rating valuations.
This means in many cases a sale price achieved in the market today may be different to the new rating valuation set as at 1 September, 2017 and that rating valuations are not designed to be used as market valuations for raising finance with banks or as insurance valuations.
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.
New rating values will be posted to property owners after 13 December, 2017. If owners do not agree with the rating value they have the right to object. The objection close-off date is 2 February, 2017.
To find out more about objection or to lodge an objection online go to www.ratingvalues.co.nz or call 0800 787 284 to request an objection form.
Or watch this video on YouTube ‘what is a rating value’: https://www.youtube.com/watch?v=DLh3nSC7CxU
For more information please contact:
Tim Gibson - Senior Consultant - QV
Mobile: 021 1512887
Steve Hill - Chief Executive – Clutha District Council
03 419 0200