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New rating valuations for Central Otago district

Contributor:
Fuseworks Media
Fuseworks Media

By now most Central Otago property owners will have received their 2019 Notice of Rating Valuation with an updated rating value for their property.

The new rating valuations were prepared for 14,770 properties on behalf of the Central Otago District Council by Quotable Value (QV).

Rating valuations are carried out on all properties in New Zealand, usually once every three years to specifically help local councils set rates for the following three year period. Rating values are just one of a number of factors councils use to allocate rates.

Council rates will not be updated based on the new 2019 rating valuations until 1 July 2020.

The updated rating valuations should reflect the likely selling price of a property at the effective revaluation date, which was 1 September 2019, but do not include chattels.

The rating revaluation figures compiled by QV show the total rateable value of the 14,770 properties within Central Otago District Council is now $12,416,775,000 with the land value of those properties now valued at $6,634,180,000.

QV Registered Valuer Tim Gibson said, "Residential housing is showing an average capital value increase since the previous revaluation in 2016 of 36.6% with the average house value now $531,000, while the corresponding average land value increased by 72.7% to an average of $266,000. Value level changes varies on location and house type."

Central Otago District Council Executive Manager - Corporate Services Leanne Macdonald said it was a common myth that capital value increases meant that rates increase by the same percentage.

"Council is still collecting the same amount of rates we set our budgets for through our long term and annual planning process. The property revaluations may just slightly shift the ‘share of the pie’ that sectors within our district are paying for land or capital value-based rates."

Mr Gibson said commercial property "is showing an overall increase of 23.3%, while the industrial sector has increased 40.5% relative to the 2016 Capital Value levels".

"Land values have increased overall with 58.7% for commercial and 67.7% for industrial compared to 2016 land values.

"Lifestyle properties have also seen good value increases since 2016, with the average improved lifestyle property capital value increasing by 38.7% to $748,000, while the corresponding average land value for a lifestyle property increased by 62.2% to $434,000."

Mr Gibson added that in the rural sector dairying and the pastoral values had been fairly flat since 2016 with dairy increasing by 1.4% and pastoral increasing by 5.1% since 2016.

"Horticulture values are the exception to this with good demand and new plantings of cherries lifting improved values by 48.3% with the with an average improved value of $2,062,000 and land value increasing by 57.5% with an average value $981,000."

Central Otago Mayor Tim Cadogan said that the significant increases can be viewed entirely differently depending on the perspective of a viewer. "For a home owner, their equity in their property has obviously increased but for someone trying to get on the property ladder, that first rung just got a lot higher."

The updated rating valuations are independently audited by the Office of the Valuer General, and need to meet rigorous quality standards before the new rating valuations are certified.

If owners do not agree with the rating value they have the right to object. The objection close-off date is 17 January 2020.

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