The Napier City Rating Revaluation for 2017 is now confirmed and property owners will soon receive a 2017 Notice of Rating Valuation with an updated rating value for their property.
The new rating valuations have been prepared for 25,801 properties on behalf of the Napier 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 2017 rating valuations until 1 July 2018.
The updated rating valuations should reflect the likely selling price of a property at the effective revaluation date, which was 1 September, 2017, but do not include chattels.
The rating revaluation figures compiled by QV show the total ratable value of the 25,801 properties within Napier District Council is now $14.58 billion with the land value of those properties now valued at $6.58 billion.
QV Senior Consultant Philippa Pearse said, “Property values have shown significant increases across all areas and types which reflect the strong market demand the area has been experiencing.”
“The largest increases in the three years since the September 1, 2014 rating revaluation has been seen in the lower priced areas such as Maraenui where on average capital values have increased 54.0% to $235,000 and Pirimai and Onekawa which have seen an average increase of 46.0% to $375,000.”
“ While the upper end of the market including Napier Hill and Westshore have had smaller average increases of between 31.0% to $635,000 and 35.0% to $703,000 respectively and Ahuriri 40.0% to $743,000, these suburbs come off a higher value base so the percentage rise equates to a substantial dollar value increase.”
Land values in all areas have also increased as shown in the table below.
Further information on how Napier residential property values compare to other districts and to all of New Zealand can be found at www.qv.co.nz/property-trends/residential-house-values .
“Commercial and industrial properties have also seen value increases, with the average capital value for developed commercial property increasing by 17.0% since the last rating revaluation in 2014, and the average capital value for developed industrial property increasing by 32.0% over the past three years.”
“Rural and lifestyle properties have also seen values increase since 2014 with the average improved lifestyle property capital value increasing by 28.0% to $830,000 with the corresponding average land value for a lifestyle property increasing by 29.0% to $400,000.”
Philippa Pearse said,”There has been strong growth in the industrial areas where both owner occupiers and investors have been active and there is a shortage of good quality properties for both lease and purchase.”
“Seismic issues continue to affect values in particular commercial properties pre 1970 and some properties have been affected by weather tightness problems.”
It is helpful to remember the effective rating revaluation date of 1 September, 2017 has passed and any changes in the market since then won’t be included in the new rating valuations.
This means in many cases a sale price achieved in the market today may be different to the new rating valuation set as at 1 September, 2017 and that rating valuations are not designed to be used as market valuations for raising finance with banks or as insurance valuations.”
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.
New rating values will be posted to property owners after 6 December, 2017. If owners do not agree with the rating value they have the right to object.
The objection close-off date is 19 January, 2017. To find out more about objection or to lodge an objection online go to www.ratingvalues.co.nz or call 0800 787 284 to request an objection form.
Or watch this video on YouTube: What is a rating value: https://www.youtube.com/watch?v=DLh3nSC7CxU
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