Property Value Increase Sign of Confidence
Thursday, October 29, 2015
The total capital value of properties in South Taranaki has risen by almost 20% in the last three years which is a strong sign of confidence in the district says Quotable Value (QV) regional manager, Richard Allen.
According to the latest district wide property rating valuation conducted by QV, the capital value of South Taranaki has risen to be worth $10.47 billion.
The largest increases were in the rural sector with dairy properties seeing an average 29% increase in value, while commercial properties saw a healthy 4% increase with residential property values a more subdued 1% increase.
The average capital value of a house in South Taranaki is now $172,368, though in Hawera the average rises to $209,821.
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 than the average movement across the District.”
Mrs Wilson says the new rating values will not be used for rating purposes until 1 July 2016 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.qv.co.nz or call Quotable Value on 0800 787 284 to get an objection form.
The last day for objections in South Taranaki is 3 December 2015. If you have any other questions call the Council’s finance department on 0800 111 323,” she says.