Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 


Christchurch City rating value rises

10 March, 2014

Christchurch City rating value rises

Christchurch City Council’s first post-quake property revaluation indicates the city’s total Rating Value has risen from $75 billion to $84 billion.

The revaluation carried out by independent valuer Quotable Value (QV) shows residential properties have risen 16.2 per cent, compared with an approximate nine per cent rise for commercial and rural properties.

Council Finance Committee chairman Raf Manji says the new values will take effect for city and Banks Peninsula properties from 1 July 2014, but this does not mean the Council will automatically collect more in rates.

“The total amount of rates collected each year is set in the Council’s Annual Plan. Rating Values are used to work out how much is collected from each ratepayer.

“It’s important to realise that if the Rating Value of your property rises or falls, your rates won’t necessarily follow suit. Your rates bill is based on the value of your property in relation to the value of all other properties city-wide.

Based on the recent revaluation, the average house in Christchurch has a Rating Value of $455,000. With the 6.5% rates rise, this property will pay $2076 in rates.

This means the average residential property will pay an extra $2.83 per week in rates.

“Changes in Rating Values vary widely across the city and there are several reasons for this, Mr Manji says.

“The creation of the residential Red Zone, coupled with extensive demolitions in the Central City, pushed down the overall Rating Value of those areas.

“Because of the earthquakes, we’ve had a six year gap between revaluations instead of the usual three years. The last revaluation in 2007 also occurred when the property market was at its peak. In the case of Banks Peninsula, where there are a high proportion of holiday homes, demand for these properties fell after the global financial crisis, and this led to a drop in values.”

The Government approved a special methodology for the revaluation that excludes earthquake damage.

But QV Southern Operations Manager Brendon Bodger says although the new valuations cannot take into account any physical earthquake damage, they do reflect the market reaction to the earthquakes.

“Most residential property values have increased from the previous peak of the market in 2007, with almost 80 per cent experiencing a rise of 10 per cent or more. This is the result of strong demand for housing fuelled by the influx of workers into the city and the relocation of approximately 7,000 red zoned properties.”

Other key trends:
• Residential values have tended to drop for bare TC3 land where site specific foundations are required. For properties with existing houses, TC categories had little impact on Rating Values.
• Commercial land values have generally fallen sharply in the inner part of the Central City (as much as 50 per cent) and increased in outer areas of the CBD suitable for office accommodation. Values have risen strongly in suburban commercial areas (in some cases by more than 40 per cent).
• Rural values have gone down slightly, but some areas with development potential close to the city have risen.
• The average rise for more affordable homes has tended to be greater than for more expensive homes, reflecting demand for these types of properties.
• Average values have fallen slightly across Banks Peninsula.

Background:
• The Government-approved valuation method was adopted because it was not practical to physically inspect more than 160,000 city properties.
• New Rating Valuations will be publicly released on 12 March.
• Ratepayers have six weeks to lodge an objection to their new Rating Revaluation with QV. If dissatisfied with the outcome, they have the option of filing a further objection with the Land Valuation Tribunal.
• Earthquake damage is not grounds for objection.

For further information and a list of FAQs on the revaluation: www.ccc.govt.nz/revaluation

Glossary of terms:
Rating Value (often referred to as Capital Value and previously referred to as Government Value or GV ) is an assessment of the likely price paid for a property had it been sold on 1 November 2013. Rating Value is used to determine how much individual property owners pay in rates each year. A market valuation involves a detailed property inspection and is usually done for mortgage purposes or when a property is sold.

Quotable Value is an independent valuer contracted by the Christchurch City Council to assess the Rating Value of all city properties. QV’s work is audited by the Office of the Valuer General who oversees local authority property revaluations nationally.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On Anne Tolley’s
Callous Folly

Years ago, I remember someone in the Heath Ministry telling me off the record that regulatory oversight in this country largely consisted in ‘waiting for something to turn green or fall off somebody’ before the authorities would swing into action...

Last week’s conflict between Social Development Minister Anne Tolley and District Court judge Carolyn Henwood illustrated quite a few of the flaws in the system. More>>

 

Members’ Bills: Greens' Domestic Violence And Loans Bills Pulled From Ballot

Jan Logie’s Domestic Violence-Victims' Protection Bill introduces workplace protections for victims of domestic violence, including allowing victims to request paid domestic violence leave for up to 10 days... Gareth Hughes’ Bill allows Kiwis with student loans to defer their student loan repayments into a first home savings scheme. More>>

ALSO:

IPCA: Police Did Not 'Deliberately' Use Pepper Spray On 10-Year-Old

"When spraying the man, the officer did not properly consider the necessity of using pepper spray in a confined space, the likelihood that it would affect the other innocent passengers or the fact that he was using a more powerful spray." More>>

ALSO:

Donor Bill Passes: Full Income Compensation For Live Organ Donors

Unanimous cross-party support for the Compensation for Live Organ Donors Bill represents a critical step in reducing the burgeoning waiting list for kidney donations, according to Kidney Health New Zealand chief executive Max Reid. More>>

ALSO:

Earthquake Response: Emergency Legislation Prepared

Three new Bills have been drafted in the wake of the magnitude 7.8 earthquake on November 14 to ensure the government can enable affected communities to respond quickly and efficiently. More>>

ALSO:

Housing MPs: New Building(s) For Parliament

A new building will be erected on Parliament grounds to house Members of Parliament and their staff who currently work in leased accommodation in Bowen House. The plan has cross-Party support, apart from NZ First, said Parliament’s Speaker, Rt Hon David Carter. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news