House values soar across Tasman

Residential house values have risen across Tasman district but the percentage hikes have been larger in areas around top-priced Richmond, with Motueka and Tapawera leading the way.

Quotable Value (QV) rating valuations show the value of the average dwelling at Motueka climbed 33.2 per cent over the three years to September 1, to reach $488,000.

Tapawera was not far behind with a percentage increase of 32.6 per cent taking the average value for a dwelling to $311,000 as at September 1.

QV senior consultant and registered valuer Richard Kolff said the Tapawera market was ‘‘probably’’ within commuting distance to Richmond and Nelson, the mobile phone coverage had been improved in the area and it was more affordable compared with other areas around Richmond including Motueka and Wakefield.

Brightwater and Wakefield properties also recorded strong growth in values. Both towns had a 30.6 per cent rise in the value of an average dwelling, reaching $541,000 and $490,000 respectively.

At $564,000, Richmond took top honours for having the highest average dwelling value on a QV table as at September 1. That represented a 30 per cent rise since September 1, 2014.

Kolff said land values in Richmond had increased strongly due to ‘‘demand exceeding supply’’ for new sections.

‘‘As house prices have increased in Richmond, there has been a flow-on effect to more affordable, outlying areas such as Motueka, Wakefield, Brightwater and Tapawera.’’

Values for residential properties in Golden Bay had been weak since 2008, he said.

However, the latest revaluation shows an 18.3 per cent climb to $428,000 for the average dwelling value.

‘‘Although there is good demand for houses there, the land values have had little or no movement due to high development and construction costs,’’ Kolff said.

QV prepared new rating valuations for 24,763 properties on behalf of Tasman District Council. They will be used by the council to help set rates for the next three years.

The revaluation figures show the total rateable value of the 24,763 properties was $17.7 billion with the land value of those properties at $9.3 billion.

Overall, there was a 22.3 per cent increase in capital values across the district over the past three years.

QV quality and audit manager Gail Smits told councillors the biggest increase was 34 per cent in the horticultural sector, which included vineyards, hops and pipfruit.

‘‘They’ve all seen growth but probably more so the growth in the pipfruit,’’ Smits said.

Some of that growth in value for pipfruit properties was due to new plantings.

By contrast, dairy farms had an increase of about 5 per cent only while pastoral farms climbed about 15 per cent.

The revaluations were a ‘‘snapshot’’ in time, based on property sales. A team of valuers considered the sales, prepared models, looked at individual pockets and made some roadside inspections ‘‘to produce a set of values that have been through quite a rigorous audit’’.

‘‘We generally find most people want to have growth in those values and in most sectors of the market, we’re actually seeing considerable growth,’’ Smits said.

Kolff said commercial and industrial property values had also increased, with the average capital value for developed commercial property up by 9 per cent and the average capital value for developed industrial property increasing by 10.8 per cent over the past three years.

‘‘Rural and lifestyle properties have also seen values increase since 2014 with the average improved lifestyle property capital value increasing by 22.7 per cent to $780,000 with the corresponding average land value for a lifestyle property increasing by 13.7 per cent to $413,000.’’

Property owners should receive a 2017 Notice of Rating Valuation with an updated rating value for their property. If they do not agree, they can lodge an objection until February 9.