Waikato property values rise fast

Oct 27th, 2017 | By | Category: Hot Topics, Latest News

The Waikato district is one of the New Zealand’s fastest growing areas, new property valuations show.

The total rateable value of the Waikato district’s 31,271 properties is now $27.69 billion with the land value of those properties now valued at $17.12 billion.

Waikato District Council reported last week that district property values had risen by an average of 33.7% overall in the past three years.

“Demand for housing and land for development in the Waikato has grown rapidly over the last three years following strong population growth and demand for property in both Auckland and Hamilton,” said Stephen Hare, Senior Consultant for Quotable Value (QV), which carried out the revaluations.

“As a consequence Waikato is one of the country’s fastest growing districts,” he said.

The Waikato is one of NZ’s fastest growing districts

“This was reflected in the volume of resource consent and building consent applications for new dwellings rapidly increasing throughout 2015 and 2016 and applications for these have only recently started to slow.

“This heightened activity and demand for property is reflected in recent sales and there have been significant increases in residential value levels over the last three years as a consequence.

“There has been significant growth in Pokeno, Huntly and Te Kauwhata values but growth has not just been confined to the larger townships and value levels in small rural villages and settlements in the district have also increased significantly as well.”

Further information on how Waikato residential property values compare to other districts and to all of New Zealand can be found here.

Hare said commercial and industrial properties had also increased in value, with the average capital value for developed commercial property increasing by 24.3% since the last rating revaluation in 2014, and the average capital value for developed industrial property increasing by 47.9% 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 43.2% to $847,813 with the corresponding average land value for a lifestyle property increasing by 58.2% to $498,264.”

Waikato District Council’s General Manager Strategy and Support Tony Whittaker said a change in rateable value did not mean property rates would change by a similar percentage.

“The council does not collect more rating income as a result of increased property values or less rating income if values decrease.”

Rating valuations are carried out on all properties in New Zealand, usually once every three years to 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 July 1 next year.

The updated rating valuations should reflect the likely selling price of a property at the effective revaluation date – July 1, 2017 – and do not include chattels.

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 were posted to property owners from the end of last week [week ending 20 October, 2017].

If property owners do not agree with the rating value they have the right to object.

The objection close-off date is November 24, 2017. To find out more about objection or to lodge an objection online go to www.ratingvalues.co.nz or call QV toll free on 0800 787 284.

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