Prop­erty val­ues sky­rocket

Central Otago Mirror - - FRONT PAGE - JO MCKEN­ZIE-MCLEAN

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.’’

JO MCKEN­ZIE-MCLEAN

Neil Gille­spie.

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