New rating valuations for Clutha District
Clutha 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 12,111 properties on behalf of the Clutha District Council by Quotable Value (QV). They show the total capital value for the district is now $8,869,024,000 with the land value of those properties now valued at $5,694,255,000.
Clutha District Mayor Bryan Cadogan said we have all seen in recent times the unprecedented rise, especially in some urban communities.
“While the revaluation process is outside Council control, the changes will have an influence on rates but only the margin your property has altered compared with others,” Mayor Cadogan said.
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 2020, and do not include chattels.
On average, the value of residential housing has increased 49.4% since 2017 with the average house value now sitting at $313,000, while the corresponding average land value increased by 77.8% to an average of $97,000.
QV Area Manager Tim Gibson commented: “The demand for residential housing was buoyant across the region, with all townships in the district seeing significant increases in values.
“The townships close to Dunedin City in particular have seen the highest growth with Waihola and Milton being sought after by people that are seeking a more affordable location. Good value growth has also existed for the coastal locations within the Catlins, with these properties generally tightly held but obtain good demand when entering the market. Lower value properties have seen the most competition from buyers and has seen the greatest value increases.”
Meanwhile, commercial property values have increased by 13.2%, and property values in the industrial sector have increased by 10.8% since the district’s last rating valuation in 2017. Commercial and industrial land values have also increased by 33% and 34% respectively.
“Large commercial and industrial increases have been observed in the smaller townships on the back of demand shown for residential property. The more traditional commercial and industrial sector of Balclutha was showing limited movement from 2017 value levels with retail in particular struggling with some difficulty observed in leasing vacant properties in this locality,” said Mr Gibson.
“While locals and domestic tourists have been very good at supporting businesses, this has been offset to some degree by online competition for retailers and the lack of tourist trade for visitors to the Catlins area.”
Residential housing value changes since 2017 revaluation levels
Since 2017, the average capital value of an improved lifestyle property has increased by 28.6% to $502,000, while the corresponding land value for a lifestyle property increased by 31.0% to $155,000.
“Lifestyle properties typically align in value with high-end residential properties and this segment of the market has seen a more modest increase in values than the residential market overall,” Mr Gibson added.
He said some uncertainty existed within the rural market with dairy values reducing from 2017 levels by 10% and pastoral values reducing on average by 2%. Forestry was showing a good lift in values of 22.2% as well as any pastoral land that could be deemed to be forestry land – a trend that has been observed throughout New Zealand.
It is helpful to remember the effective rating revaluation date of 1 October 2020 has passed and any changes in the market since then will not 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 October 2020 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 27 January 2021. If owners do not agree with their rating valuation, they have a right to object through the objection process before 5 March 2021.