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Horowhenua rating revaluation shows moderate growth in property market over past three years

18 Oct 2016

The Horowhenua District Rating Revaluation for 2016 has been finalised and property owners there will soon receive a 2016 Notice of Rating Valuation with an updated rating value for their property.

The rating revaluation has been carried out by Quotable Value (QV) on behalf of the Horowhenua District Council. Rating valuations are a fit for purpose valuation carried out on all properties in New Zealand, usually once every three years to help local councils set rates in their area or District for the following three year period.

Jason Hockly, QV Valuer said, “QV can confirm the total capital value of all properties in the Horowhenua District is now valued at $6.5 billion which is a 10.2% increase from 2013.”

“Since the last rating revaluation in 2013, the Horowhenua District residential property market has experienced a moderate amount of growth, with residential capital values increasing on average 11.7%.”

“All main residential areas have on average increased in capital value, with Levin seeing the largest percentage increase.  In terms of residential land values have increased in all areas of the Horowhenua District except in Foxton and Hokio Beach.”

“We have continued monitoring current market activity up until October 2016, and note residential values have continued to increase since the effective date of the rating revaluation so home owners need to remember their new rating values will not reflect any increases in the market since August 1, 2016.”

Below is a table of the Horowhenua District Average Residential Rating values as at the 1 August 2016.

Area

Average

Residential

Capital Values

% Change Since 2013

 

Average

Residential

Land Values

% Change Since 2013

Levin

$225,799

18.5

$78,621

9.8

Foxton

$155,013

6.4

$41,977

-20.0

Foxton Beach

$245,693

9.9

$97,609

8.8

Shannon

$150,230

5.5

$45,309

14.6

Waitarere Beach

$289,272

3.4

$123,281

3.2

Tokomaru

$207,066

5.7

$61,139

6.6

Hokio Beach

$139,206

0.7

$63,433

-5.0

Waikawa Beach

$286,266

2.9

$146,491

-4.7

Ohau

$384,377

4.9

$125,557

-0.4

Manakau

$350,150

2.8

$128,650

0.0

“Property values in the commercial and industrial sectors have on average have shown a slight reduction over the past three years.  Seismic related issues around earthquake strengthening requirements continue to be a downward pressing effect on value.”

“Sales activity has been low throughout most of the district, except in Foxton, which has seen particularly strong sales volumes with a noticeable reduction in value for properties with seismic issues.”

“In terms of the rural property market, rural values have increased 13.8% since 2013. Rural property sales from early 2014 to early 2015 were strong, with pastoral and arable prices hitting new records.”

“However in the past eighteen months with the traditional winter season slowdown and a reduction in international dairy commodity prices from historical highs, there has been a reduction in market activity in the rural sector.”

“Value increases for lifestyle properties have been more subdued than residential and rural increases, rising on average 5.0% since 2013.”

“The Residential Property Value Index graph for Horowhenua shows that values in Horowhenua have risen over the last three years since the last Horowhenua District rating revaluation was carried out.”

Rating valuations reflect the likely selling price of a property at the effective revaluation date, which for the Horowhenua District was 1 August 2016. They are a mass-appraisal product, taking into account recent sales of similar properties and establishing a market trend which is applied to similar properties in the area. Individual property inspections for new building consent work, subdivisions, objections, and ratepayer requests to have their rating values updated, add to the process.

Rating values are just one of a number of factors councils use to allocate rates. However, council rates will not be updated based on the new 2016 rating valuations until 1 July 2017. 

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

It’s important to remember that while a rating valuation should reflect the likely price a property would sell for at the effective date of the rating revaluation, it does not include chattels i.e. movable personal items such as curtains and appliances) and is not designed to be used as a current market valuation of your property. Current market valuations require an individual inspection of a property and full written report by a Registered Valuer and can be provided to banks for use in raising finance or for other legal purposes and these are a different type of valuation to a rating valuation.

A change in a rating value doesn’t necessarily mean that your rates will change, it depends on your council’s requirements and how rating values have changed over the rest of the area.

If all rating values drop by the same amount, your percentage remains the same, and so do your rates, but this does depend on your council’s funding requirements.

The notices of the new rating values for the Horowhenua District will be posted to property owners after 17 October.  Those who disagree with their new rating value have the right to object. The objection period close-off date is 25 November 2016. You can object online at www.ratingvalues.co.nz or call 0800 787 284 to request an objection form.

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