Property values skyrocket
Cromwell property values have skyrocketed by 36.9 per cent over the past three years to an average $495,000, according to the latest rating revaluation.
Central Otago property owners will soon receive a 2016 notice of rating valuation with an updated rating value for their property.
Valuer Dave Johnson said the overall rateable value for the Central Otago District was now $9.2 billion, which was a 23.3 per cent increase over the past three years since the last rating revaluation in 2013. Overall, the district has seen residential capital values increase overall by 24 per cent and corresponding residential land values have increased by 22.6 per cent. The average rating value for a residential dwelling in the district is now $400,000.
Strong value growth had been seen in Cromwell, Alexandra and Clyde, while values had decreased in Ranfurly and Naseby. Roxburgh had experienced moderate increase in values.
The residential market in Cromwell, Clyde and Alexandra was strong, with a shortage of supply and the strongest growth in the lower end of the market. Cromwell has a 36.9 per cent increase in the average rating value of a residential dwelling to $495,000. Clyde values increase 26.5 per cent and had an average residential dwelling rating value of $407,000. Alexandra residential values rose 16.8 per cent with an average value of $385,300; Roxburgh values rose 14.9 per cent with an average residential dwell- ing value of $205,600; while Ranfurly values decreased 4.2 per cent with an average residential value of $169,300; Naseby values also decreased 9.4 per cent with average residential dwelling rating value of $199,300.
Cromwell Community Board chairman Neil Gillespie said people should not get too excited about the average value.
‘‘People have to remember - it isn’t the minimum price, it’s the average...so I don’t think we should get too excited about what the average is because it can be dragged up by some higher end values. There are still houses less than the average - there has got to be.
‘‘Is it a bad thing? No, it’s just the market working and we shouldn’t get too excited about rates at the end of the day, especially in Central Otago as we are lucky enough that most of our rates, no matter where you live...our rates are pretty similar.’’