Val­u­a­tions show a big rise for prop­erty

Manawatu Guardian - - NEWS -

Palmer­ston North prop­erty own­ers have started re­ceiv­ing their up­dated rat­ing val­ues for their prop­erty.

The new rat­ing val­u­a­tions have been pre­pared for 33,340 prop­er­ties on be­half of the Palmer­ston North City Coun­cil by Quotable Value (QV).

Rat­ing val­u­a­tions are car­ried out on all prop­er­ties in New Zealand, usu­ally once ev­ery three years to help coun­cils set rates for the fol­low­ing three years. Coun­cil rates will not be based on the new 2018 rat­ing val­u­a­tions un­til 1 July 2019.

The up­dated val­u­a­tions should re­flect the likely sell­ing price of a prop­erty at the reval­u­a­tion date, 1 Septem­ber 2018, but do not in­clude chat­tels.

Palmer­ston North City Coun­cil will use the new val­ues for set­ting rates from 1 July 2019.

Strat­egy man­ager fi­nance Steve Pater­son says coun­cil staff are re­view­ing the new val­ues to as­sess the im­pact on rates for in­di­vid­ual prop­er­ties.

“It is im­por­tant to re­alise that the changes to val­ues does not in­crease or de­crease the to­tal rates rev­enue for the coun­cil.

“In­stead, rates will be spread among ratepay­ers in slightly dif­fer­ent pro­por­tions than be­fore.”

Be­cause res­i­den­tial land val­ues have in­creased at a faster rate than other sec­tors, res­i­den­tial prop­er­ties will pay a larger share of the to­tal rates than at present, when the new land val­ues are used for rates cal­cu­la­tions for 2019/20.

“Early in­di­ca­tions are that if the new land val­ues had been used to cal­cu­late the cur­rent years rates, res­i­den­tial rates would have been be­tween $140 and $250 higher than at present for many and up to $500 more for some.”

The rat­ing reval­u­a­tion fig­ures com­piled by QV show the to­tal rate­able value of the 33,340 prop­er­ties is now $19.5 bil­lion, with the land value now $10 bil­lion. QV prop­erty con­sul­tant Si­mon Wil­locks said there was strong de­mand for res­i­den­tial prop­erty through­out the city, with val­ues in­creas­ing sig­nif­i­cantly since the last reval­u­a­tion three years ago.

“Res­i­den­tial land value in­creases have driven much of the value growth across the city, with sec­tion prices at un­prece­dented lev­els. Land val­ues have in­creased on av­er­age 68 per cent with lower land val­ues dou­bling, and high land val­ues in­creas­ing by about 40 per cent.

Com­mer­cial and in­dus­trial prop­er­ties have also in­creased, with the av­er­age cap­i­tal value for de­vel­oped com­mer­cial prop­erty in­creas­ing by 17.5 per cent since the last reval­u­a­tion.

The ef­fec­tive rat­ing reval­u­a­tion date of 1 Septem­ber 2018 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 in the mar­ket to­day may be dif­fer­ent to the new rat­ing val­u­a­tion set as at 1 Septem­ber 2018 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 meet rig­or­ous qual­ity stan­dards be­fore the new rat­ing val­u­a­tions are cer­ti­fied.

New rat­ing val­ues are be­ing posted to prop­erty own­ers.

If own­ers do not agree with the rat­ing value they have the right to ob­ject.

The ob­jec­tion close-off date is 13 De­cem­ber 2018.

■ Fur­ther in­for­ma­tion on how Palmer­ston North City res­i­den­tial prop­erty val­ues com­pare to other dis­tricts and to all of New Zealand can be found at prop­erty-trends/res­i­den­tial-house-val­ues

PALMER­STON North City’s res­i­den­tial sec­tor has seen strong growth in val­ues.

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