House prices hit highest point in city since 2007
Porirua homeowners are facing another rates rise following the biggest jump in the city’s house valuations in nine years.
Bob Turner, 77, from Cannons Creek, said his three-bedroom home has gone up $100,000 in 10 years and could be about to increase again once his letter from Quotable Value arrived.
Figures from QV, which values homes every three years, show homes in Porirua have increased 24 per cent since 2013, the biggest single rise since 2007.
The average house price in the city is now $486,000.
Turner said there was a negative side to the increased house value.
‘‘I’m waiting for the rates rise to follow [from Porirua City Council] - it’s inevitable, isn’t it? It might only be a few dollars, but that’s going to make a difference to me.’’
Marleen Casey, who has lived in Plimmerton for 80 years, was anticipating a jump in the $100 a week she already paid on her home.
‘‘It’s not like I’ve made major improvements on it. For my rates to rise more could become a struggle, but I’m lucky to have a wonderful family looking out for me. You can see why people in Plimmerton are selling up and moving on.’’
Porirua City Council’s chief financial officer Roy Baker said it was too early to be talking rates rises, as there was a process and formula that needed to be worked through to calculate what to charge.
‘‘It’s very complex and a lot of analysis has to happen in all rating areas.
‘‘People assume that when their values go up, we [council] get more money, but it doesn’t work like that.
‘‘QV set the values and there are other factors that we need to digest so we can work out the cost to run the council.’’
Euon Murrell, until just recently the Wellington head of the Real Estate Institute of New Zealand, said house prices were going up ‘‘with a bang’’ in Porirua but he echoed Baker’s sentiments.
‘‘Just because my home used to be worth $400,000 and now it’s adjudged to be $600,000, it doesn’t necessarily mean you’ll be charged council rates at the latter amount.
‘‘There’s a formula and there will be some adjustment.’’
Murrell believed the buoyant house market was likely to hit a flat period soon.
AVERAGE HOUSE RATING VALUE IN PORIRUA’S SUBURBS
* Pukerua Bay $565,000, up 29.9% since 2013 * Camborne $638,000, up 29.6% * Papakowhai $580,000, 27.1% * Porirua East/Ranui $333,000, 26.4% * Ascot Park $341,000, 25% * Titahi Bay/ Onepoto $407,000, 24.8% * Elsdon $324,000, 24.4% * Whitby $599,000, 23.3% * Waitangirua/Cannons Creek $261,000, 22.5% * Plimmerton $730,000, 21.4% * Aotea $716,000, 19.8% * Mana/ Paremata $625,000, 19% * City centre/Kenepuru $417,000, 15.6%