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

Last Sitting Day Of Parliament: Slave Ships Bill To Pass

The House resumed at 9am and MPs agreed to add the third reading of the Fisheries (Foreign Charter Vessels and Other Matters) Amendment Bill to this morning’s business.

The bill requires all foreign owned fishing vessels to fly under a New Zealand flag from May 2016 and obey all New Zealand laws. This includes labour laws...

Last night Opposition MPs accused the Maori Party of blocking the passage of this bill into law in this Parliament, no members of the Maori Party were in the House to answer the accusations though they denied this in a press release. More>>

 

Parliament Today:

Novopayout: Government-Owned Company To Take Over School Payroll

After lengthy negotiations, the Ministry of Education and the existing school payroll provider, Talent2, have settled both on the amounts payable by Talent2 towards the costs of remediating the Novopay service and a new operating model for the school payroll system. More>>

ALSO:

Employment: Labour Will Raise Minimum Wage, Restore Work Rights

A Labour government will raise the minimum wage $2 an hour to $16.25 and restore work rights to ensure the benefits of economic growth are shared fairly by all New Zealanders, Labour Leader David Cunliffe says. More>>

ALSO:

Police: Crewe File Review Released

No new evidence has come to light implicating any specific person as being responsible for the murders of Jeannette and Harvey Crewe... The review identifies there is a distinct possibility that Exhibit 350 (the brass .22 cartridge case) may be fabricated evidence, and that if this is the case, that a member of Police would have been responsible. More>>

ALSO:

Werewolf Issue #49: Gordon Campbell Interviews Laila Harre

For 25 years, Labour and National have been in virtual agreement about the basics of economic policy, and differed mainly on how to go about managing its social consequences. More>>

ALSO:

Greens: Plan To Protect Our Maui’s Dolphins

1. Protect Maui’s from being killed in the sanctuary set up to protect them... 2. Extend fishing protections to the entire Maui’s range... 3. Help protect the livelihoods of affected fishers by supporting them to adopt dolphin-safe fishing methods. More>>

ALSO:

Gordon Campbell: On National’s Electorate Deals

For all the talk yesterday from Prime Minister John Key about National being transparent about its electorate deals in Epsom and Ohariu, that transparency is entirely front-loaded. More>>

ALSO:

Greens: Oil Drilling Face-Off With Labour

The key policy points in the Green Party’s plan to protect our beaches from oil spills are to:
1. Prohibit deep sea oil drilling; 2. Implement compulsory shipping lanes for coastal shipping; 3. Build Maritime New Zealand’s oil spill response capability; and 4. Introduce a stronger legal framework so that when accidents do happen, the New Zealand taxpayer does not have to pay for the clean-up. More>>

ALSO:


Nick Smith v Fish & Game:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news