Significant Rating Valuation Increase for Queenstown
Significant Rating Valuation Increase for Queenstown Lakes Properties
9 October 2017.
Properties have seen significant rating value increases since 2014 according to the recently completed Rating Revaluation for 2017. The new rating valuations have been prepared for 25,059 properties on behalf of Queenstown Lakes District Council by Quotable Value (QV).
Rating valuations are carried out on all properties in New Zealand, usually once every three years to help councils set rates for the following three-year period. These are one of a number of factors used to allocate rates and reflect the likely selling price (excluding chattels) of a property at the effective revaluation date. Rating valuations are not designed to be used as market valuations for raising finance with banks or as insurance valuations.
An increase in a property’s capital value does not automatically lead to an increase in rates payable. If a property’s valuation increase is higher than the average for the district, then the capital value portion of rates on the property will be proportionally higher in the next rating year. The reverse also applies where properties could see a decrease in the capital value portion of rates if the property’s valuation increase is lower than the district average. The capital value portion of rates equates to around 50% of the annual rates assessment.
In 2017 the revaluation date was 1 July, and new council rates based on these rating valuations will take effect from 1 July 2018. Any changes in the property market since 1 July 2017 won’t be included in the new rating valuations. Updated rating valuations are independently audited by the Office of the Valuer General.
The rating revaluation figures compiled by QV show the rateable value of the 25,059 properties within the district is now $32,120,192,000, with the land value of those properties now at $19,012,419,000. The growth in tourism remains the largest economic driver for the district. High demand for residential property has fuelled price increases while rental housing shortages are keeping rents high. The biggest percentage increase has been for housing at the lower or entry level to the residential market.
Outlying towns such as Glenorchy, Kingston, Albert Town and Lake Hawea are all benefitting from residential shortages in both Queenstown and Wanaka. There is also steady demand across the district for lifestyle properties. The average capital value for an improved rural and lifestyle property has increased by 42.6% to $2,532,000 since 2014. The corresponding average land value for a lifestyle property has increased by 58.8% to $1,265,000.
Commercial and industrial properties have also seen value increases, with the average capital value for developed commercial property increasing by 53.7% and developed industrial property by 53.3% in the last three years.
New rating values are currently being posted to all property owners in Queenstown Lakes District. If owners do not agree with the rating value they have the right to object until 10 November 2017.