Kawerau District property owners will soon receive a Notice of Rating Valuation in the post with an updated rating value for their property.
The new rating valuations have been prepared for 3029 properties on behalf of the Kawerau District Council by Quotable Value.
They show the total rateable value for the district is now $1,473,346,400 with the land value of those properties now valued at $548,365,000.
Rating valuations are usually carried out on all New Zealand properties every three years to help local councils set rates for the following three-year period.
They reflect the likely selling price of a property at the effective revaluation date, which was August 1, 2021, and do not include chattels.
On average, the value of residential housing has increased 63 per cent since 2018 with the average house value now sitting at $411,000, while the corresponding average land value increased by 55 per cent to an average of $166,000.
QV Senior Consultant Michael Power says the demand for residential housing has been buoyant across the district with a shortage of listings.
"Buyer interest is primarily coming from retirees, first-home buyers and investors. The Norske Skog mill closure doesn’t appear to have had any effect on the residential market to date
"While there has been a significant lift in values, the district’s prices are still seen to be comparatively affordable by many, especially at a time when property prices have also been dramatically increasing around the country.
"New residential building is occurring at the recently developed Central Cove subdivision and the Porritt Glade Lifestyle Village which the council is completing in partnership with Generation Homes."
Meanwhile, commercial property values have increased by 32 per cent, and while most values in the industrial sector have also increased, the overall average movement shows a 15 per cent decrease due to the closure of the Norske Skog Mill.
“With little increase in demand, retail and office properties have seen lower increases in value than the residential property market, but they have still increased off the back of strengthening yields.
“While there is demand from buyers for good-quality properties with favourable leases in place, this has been offset to some degree by a number of vacancies in the town.”
Power says it's helpful to remember the effective rating revaluation date of August 1, 2021, has passed and any changes in the market since then will not 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 August 1, 2021.
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.
They are not designed to be used as market valuations for raising finance with banks or as insurance valuations.
New rating values will be posted to property owners after November 3, 2021.
If owners do not agree with their rating valuation, they have a right to object through the objection process before December 9, 2021.