Valuations show a big rise for property
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 www.qv.co.nz/ property-trends/residential-house-values
PALMERSTON North City’s residential sector has seen strong growth in values.