Urban properties bear the brunt of changes
QV revaluations change spread with demand pushing up values
Urban properties in Central Hawke’s Bay will bear the brunt of the district’s rates rises, after Quotable Value Limited (QV) valuations released last month revealed wide variations in property value increases.
Central Hawke’s Bay, along with every council in New Zealand, must by law apportion rates according to this three-yearly QV property valuation data.
Before the valuations were released, the Central Hawke’s Bay District Council had identified the need for an additional $1.6 million to operate in 2022-23, 6.8 per cent more last year. The new QV valuations do not change or increase that budget, but they do change how the rates will be spread across the district.
Based on the old valuations, the spread of the rates across the district was relatively consistent. But strong property value growth revealed in urban areas means it will now be owners of residential properties that will experience the highest rate increases this year, while some rural properties will even see their rates bill drop. Because QV was late providing the valuations this year, the impact was unable to be accurately predicted.
“If you own a property in town and connected to water services, you are looking at a larger than average increase to your rates this year,” says Alex Walker, mayor of Central Hawke’s Bay.
“We have seen a dramatic increase in the value of urban and lifestyle properties compared to rural areas and it means that they will now pick up a larger proportion of the rates requirement for the district.”
Residential property values have increased 128 per cent since 2018 while commercial properties have seen a 50 per cent increase. Pastoral units have only increased 42 per cent and dairy blocks 20 per cent.
Smaller rural towns like Ongaonga and Tikokino have also risen faster than the larger towns, coming off a more affordable base. The average residential property connected to water services will have an overall rates increase of at least $400.
Mayor Walker says: “It’s great that the value of Central Hawke’s Bay has been recognised by our new QV valuations. But the timing of this good news is now terrible. We know that the cost of living is increasing as we come out of this pandemic and this rates increase does not help.
“There will continue to be targeted spending on upgrades to waters infrastructure, roading and parks after years of underinvestment, increased environmental compliance standards for rubbish and recycling services, and meeting the needs of huge growth in the district.”
She encourages the community to look up their property address on the council website chbdc.govt.nz and search “My Property” to see their projected rates for 2022-23. The new rates will be effective from July 1.
“We have done two things — reconsidered the contents of the budget and looked for changes to the rating structure that might help soften the blow. But neither of these things provide us with any option that will materially change the result.
“Our fundamental vision of a thriving and prosperous district has not changed. Your councillors and I are clear that we must find the best way to stay the course in Central Hawke’s Bay if we are going to be good ancestors and not add to the underinvestment of the past.”