2020 Property Revaluations
The new valuations will form the basis of Council’s rates calculation for the 2021/22 year, starting on 1 July 2021. Anyone who does not agree with their valuation is welcome to lodge an objection up until 5 March 2021.
The 2020 property valuations are based on the property market as it was on 1 October 2020. The value reflects how much the property would likely have sold for on 1 October. Property sales after 1 October will be considered in the next 2023 general revaluation.
The new rating valuations were 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.
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. The value does not include chattels.
On average, the value of residential housing in Clutha increased 49.4% between 2017 and 2020, with an average house value of $313,000 in 2020. The corresponding average land value increased by 77.8% to an average of $97,000. All townships in the district saw significant increases in values.
Meanwhile, commercial property values increased by 13.2%, and property values in the industrial sector increased by 10.8% since the district’s last rating valuation in 2017. Commercial and industrial land values also increased by 33% and 34% respectively.
Since 2017, the average capital value of an improved lifestyle property increased by 28.6% to $502,000, while the corresponding land value for a lifestyle property increased by 31.0% to $155,000.
QV commented: “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.”
"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."
As the date of revaluation was 1 October 2020, the sale price achieved in the market after that date may be different to the new rating valuation. 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.
Further details can be read in Council's media release available here.