Strong Value Increases Seen Across Tasman District Over the Past Three Years

Thursday 7 December 2017

The Tasman 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 24,763 of properties on behalf of the Tasman 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.

An increase in a property’s valuation does not automatically mean an increase in your rates bill. The revaluation does not increase or decrease the Council’s total rating income but it does affect how rates are allocated across the District’s ratepayers. If you think of the Council’s rates income as a pie, the size of the pie does not increase because of the revaluation. However, a ratepayer’s slice of pie might get bigger if their property value has increased by more than the average.

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 24,763 properties within Tasman District Council is now $17.7 billion with the land value of those properties now valued at $9.3 billion.

QV Senior Consultant and Registered Valuer, Richard Kolff said, “Residential capital values across the district have increased significantly, even in areas such as Golden Bay where values have been weak since 2008. Although there is good demand for houses there, the land values have had little or no movement due to high development and construction costs.

“In contrast land values in Richmond have increased strongly due to the demand exceeding supply for new sections.”

“As house prices have increased in Richmond there has been a flow on effect to more affordable outlying areas such as Motueka, Wakefield, Brightwater and Tapawera, where values have experienced similar percentage increases.”

Residential LocationAverage Dwelling Value as at 1 September 2017Average Dwelling Value Change % since 1 September 2014

Richmond

$564,000

30.0%

Motueka

$488,000

33.2%

Wakefield

$490,000

30.6%

Brightwater

$541,000

30.6%

Tapawera

$311,000

32.6%

Murchison

$211,000

19.8%

Golden Bay

$428,000

18.3%

 

graph

Further information on how Tasman 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 9.0% since the last rating revaluation in 2014 and the average capital value for developed industrial property increasing by 10.8% over the past three years.

“Rural and lifestyle properties have also seen values increase since 2014 with the average improved lifestyle property capital value increasing by 22.7% to $780,000 with the corresponding average land value for a lifestyle property increasing by 13.7% to $413,000.”

Richard Kolff said, “After many years of flat values there has been an increase in commercial and industrial values across the district. The value increases have been greatest in the outlying areas where values have traditionally been the lowest. Typically investment rates of returns for properties that are well located and maintained are now in the 6.5% to 8.0% range.

“Tourism has been increasing in line with the general trend for the country. There has also been some local benefit from traffic being diverted from the State Highway One closure as a result of the November 2016 Kaikoura earthquake.”

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.

Objections

New rating values will be posted to property owners after 8 December, 2017. If owners do not agree with the rating value they have the right to object.

The objection close-off date is 9 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