South Taranaki Properties See Healthy Increase in Value
DATE: 17 Oct 2018
South Taranaki Commercial and Residential Properties See Healthy Increase in Value
The total capital value of properties in South Taranaki has risen by 6.5% in the last three years to be worth $11.27 billion according to the latest district wide property rating valuation conducted by Quotable Value (QV).
The largest increases were in the commercial and residential sectors with properties seeing an average 18.7% and 17.9%% increase in value, while rural properties saw a 3.3% increase.
The average sales price of a house in South Taranaki is now $222,000 although the average price is higher in areas such as Hawera/Tangahoe and Opunake. The largest capital value increases as a percentage, were in the towns of Patea and Waverley.
South Taranaki District Council manager of corporate services, Phillippa Wilson, says it’s important to remember that while property rating values are based on market sales they are only a ‘snapshot’ of the market at a single point in time.
“Because real estate fluctuates over time a rating value can’t be expected to represent the market value for an extended period, which is why the district is re-valued every three years,” she says.
Property rating values are prepared on behalf of the Council by Quotable Value (QV) using a process called ‘mass-appraisal’; a methodology used all over the world.
Basically, rating valuers consider relevant property sales from the area around the time of the valuation. A market trend is established and applied to similar properties in the area. The mass-appraisal process is also supported with a number of valuation assessments being done on specific individual properties every year. The process for calculating rating values is then audited by the Office of the Valuer General, an independent authority which is part of Land Information NZ.
Mrs Wilson says property owners in South Taranaki will soon receive a Notice of Rating Valuation with an updated rating value for their property.
“The calculation of property rating values and how they impact on rates is complex. Just because your property rating value may show a change, doesn’t mean that your future rates will change proportionately. Rating values are just one component which is used to determine the share of the total rates paid. And the total amount of rates collected does not change as a result of the total value of properties in the District,” she says.
“Put simply, your rates will only be affected if your property value has increased or decreased by more or less than the average movement across the District.”
Mrs Wilson says the new rating values will not be used for rating purposes until 1 July 2019 when the new financial year begins.
“If you think that your rating value is not accurate, you should object. You can object online at www.ratingvalues.co.nz or call Quotable Value on 0800 787 284 (8:30am - 5pm Monday to Friday). Alternatively you can download an objection form from the Council’s website www.southtaranaki.com
The last day for objections in South Taranaki is 22 November 2018. If you have any other questions call the Council’s finance department on 0800 111 323,” she says.
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