The rapidly-rising property market has had a noticeable impact on Tauranga City Council's three-yearly property revaluations across the city.
Recently-released figures, available online, reveal widespread increases in many residential capital values, with Gate Pa, Greerton, Mount Maunganui and Omanu, Arataki-Bayfair among the highest climbers.
A suburb-by-suburb map of the movement in property values is available on the TCC website. Photo: Supplied.
Notices of the new valuations, which are used to assess rates, are currently being posted to the city's home owners.
The new rating valuations, were assessed in the midst of a rapidly rising market, boosted by Tauranga's growth and the increasing spill-over from Auckland's property market.
Starting around April this year, stats show the rise gaining momentum after two-and-a-half years of minimal movement, and according to council's website, the trend is set to continue.
As a result, capital values in certain areas have soared, particularly in established areas, but less dramatically in peripheral suburbs with land available for new builds.
There remains a large variation of value movement within each suburb, and the market has continued to evolve since the beginning of July, meaning new valuations are unlikely to reflect the actual market price of individual city properties today.
The lower end of the market saw the highest movements in capital value, with high demand for cheaper properties driving prices up. Prices at the higher end of the market, such as waterfront properties, remain relatively flat due to less demand.
Impact on rates won't be known until the rating requirement is revealed next year. The total budget needed is set through their annual planning process, which includes public consultation.
For the 2015/16 financial year, the rate demand was $120m. Council staff start with the total and look at how to divide it among ratepayers.
6 comments
rates up
Posted on 19-11-2015 11:50 | By hapukafin
I guess the rates will go up but there will be no more service available and the council will waste more money
Overit
Posted on 19-11-2015 12:03 | By overit
Here we go-higher rates. Thanks Auckland.
Hold on
Posted on 19-11-2015 12:53 | By Gigilo
Greed is a local element, nothing to to do with Auckland, just that those people have been properly paid for their labours and have now cashed in on the years of exorbitant rating in Auckland. Anyway there will be a correction, so save your pennies there will bargains to be had in the not to distant future.
.
Posted on 19-11-2015 15:16 | By whatsinaname
increase in rates looming up. think might buy motor home. landlords will put rates up. what next
Little change, if any for most ...
Posted on 20-11-2015 11:05 | By Murray.Guy
If the valuation increase is basically the same city wide, acknowledging there always are variations from area to area, the impact on rates for most will be, should be zero. Some may rise, some may drop. The real threat to rate increases, homeowners, is the present mindset of elected members choosing to support staff before ratepayers, squander before best outcomes, the rich and famous before mum, dad and the kids!
Rates up, value down
Posted on 21-11-2015 23:20 | By Captain Hottie
Why should rates rise when we're not getting any more services for our money? It's hardly homeowners' faults if their properties shoot up in value. Also seems unfair that rates are per house rather than per ratepayer. A household of 4 using 4 times as many services as a household of 1 or 2 pays the exact same amount.
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