Beach property values leap
Seaside suburbs and areas outside New Plymouth were the big movers in the latest round of capital valuations for the district.
Average residential values in Urenui, Okato, Oakura and Inglewood town climbed by more than 20 per cent in the past three years, Quotable Value’s (QV) latest figures show.
The company prepared valuations on almost 38,000 properties for the New Plymouth District Council (NPDC) in an exercise that takes place every three years to help local authorities determine and update each property’s rates. Figures show the average rateable value, commonly known as capital value, for the district increased 14.8 per cent to $493,312 between 2016 and 2019.
However, it was Urenui that had the biggest percentage increase, up on 2016 by 32.4 per cent to $386,418 – a jump of more than $94,000.
In other highlights, Okato climbed 26.6 per cent to $370,047, Oakura rose 23.1 per cent to $855,000 and Inglewood town jumped 21.6 per cent to $388,136.
Inglewood rural had the slowest average residential growth, climbing just 5.5 per cent to $387,734 in the three-year period.
While Urenui was the standout in terms of percentage increase, it was residents in the seaside suburb of Oakura, arguably the district’s most affluent, and those living in Fitzroy/ Strandon that benefited most from the new valuations.
On average the value of residents’ homes in these areas jumped by about $160,000 and $107,000 respectively.
Meanwhile, average section prices across the district are $252,029.
QV senior consultant Paul McCorry said the valuation process took into account recent sales of similar properties at the time of the revaluation and established a market trend, which is then applied to similar properties in that area. McCorry said the valuations were ‘‘effectively trying to get a snapshot of the market’’ and were used by home buyers as an indicator of value when looking to purchase.
‘‘It is the only thing that is out there, it is the only guide,’’ he said.
‘‘But we follow the market, rather than set the market.’’
The new valuations will be used by the council for rating purposes from next July, he said.
In an emailed statement, NPDC chief financial officer Joy Buckingham said rates rises were not directly relative to the land value increases.
‘‘A 25 per cent rise in land value does not mean a 25 per cent rates increase,’’ Buckingham said.
‘‘Your share of the rates depends on how much your land value rises compared with the average.’’
The new figures would not directly impact the New Plymouth property market either, Real Estate Institute of New Zealand ambassador for Taranaki, Garry Malcolm said.
‘‘They are two different things,’’ Malcolm said.
‘‘The new rateable value has brought the rateable value more in line with market value.’’
Malcolm said rateable value was also different because it did not always illustrate the work that has been done on a home.
The revaluation figures also show that the total capital value of the city is now $24.3 billion, with the land value of those properties now $13.2b.
Stratford is due for its capital value review in 2020, and South Taranaki is due the following year.