Kapiti Coast property owners will soon receive new three-yearly rating valuations in the post.
Updated values have been prepared for all 26,541 properties in the district by independent valuers Quotable Value (QV) on behalf of Kapiti Coast District Council. They reflect the likely price a property would have sold for on 1 August 2023, not including chattels.
Since the district’s last revaluation in 2020, the value of residential housing has increased by an average of 11.8%. The average house value is now at $810,000, while the corresponding average land value has increased by 15.7% to a new average of $451,000.
QV Wellington manager Hoa Quan said it had been a “rollercoaster” last three years for the property market, with record-low interest rates helping to drive significant value growth in 2021, before experiencing a long period of decline throughout 2022 and continue until May 2023.
“Kapiti Coast was one of the hottest residential markets in New Zealand throughout 2021, peaking in late 2021 with an average value of just over $1,000,000 a 43% increase over the 2020 revaluation.”
“Though property values have softened over the past 18 months or so due to increase interest rates, they’re still above the 2020 revaluation.” he said.
“For the three months prior to the revaluation date of 1 August 2023, the market has stabilised where no value decline has been recorded.”
“Properties at the more affordable end of the ladder have seen the most competition from first-home buyers, who remain the most active group in the market today, and have therefore experienced some of the largest average value increases since 2020 – especially in and around Otaki.
The average capital value of an improved lifestyle property has increased by 22.6% to $1,252,000, while the corresponding land value for a lifestyle property increased by 21.6% to $711,000. “Kapiti’s lifestyle market has seen strong growth since 2020 due to improved commuting times to Wellington,” Mr Quan added.
Meanwhile, commercial property values have increased by 13.9% and property values in the industrial sector have increased by 40.7% since the district’s last rating valuation in 2020. Commercial and industrial land values have also increased by 19.8% and 48.1% respectively.
The number of economic rural properties within the district is very small. Pastoral sector have increased by 21.4% and Forestry increased by 28.3%.
The total rateable value for the district is now $23.76 billion, with the land value of those properties now valued at $13.04 billion.
What are rating valuations?
Rating valuations are usually carried out on all New Zealand properties every three years and are used by councils to assess rates for the following three-year period. They are not intended to be used for any other purpose, including raising finance with banks or as insurance valuations.
They reflect the likely selling price of a property at the effective revaluation date, which was 1 August 2023, and do not include chattels. Any changes in the market since that time will not be included in the new rating valuations, which often means that a sale price achieved today will be different to the new rating valuation.
Rating valuations are calculated using a highly complex and detailed process that utilises all relevant property sales from your area. A large number of properties will also be physically assessed, particularly those that have been issued building consents in the last three years.
The updated rating valuations are then independently audited by the Office of the Valuer General to ensure they meet rigorous quality standards, before the new rating valuations are confirmed and posted to property owners.
If owners do not agree with their rating valuation, they have a right to object through the objection process before 14 December 2023.