Ōtorohanga property values have increased a huge amount in recent years. PHOTO: ŌTOROHANGA DISTRICT COUNCIL
Ōtorohanga District’s property valuation increased 30% in the new rating valuations prepared by Quotable Value.
But Ōtorohanga District mayor, Max Baxter said: “Just because the total value of the district has increased, doesn’t mean the council will get more in rates.
“Council has to set a budget first and then we apply our rating formulas to work out who pays what.
“It’s a complex process that will be undertaken in the next few weeks as the new council elected in October prepares their first annual plan.”
New rating valuations prepared for 5287 properties on behalf of the Ōtorohanga District Council showed the total rateable value for the district was now $6.6 billion, a 30.3% increase, with the land value of those properties now valued at $4.4 billion, a 24.7% increase.
Property owners would receive a Notice of Rating Valuation in the post with an updated rating value for their property, QV senior consultant Stuart Smith said.
Residential housing has increased on average by 54% since 2019, with the average house value now sitting at $566, 000, while the corresponding average land value has increased by 54% for an average of $286, 000.
“It will likely come as no surprise that residential property values are now much higher than they were in 2019, when our last rating revaluation for Ōtorohanga was performed,” Stuart said.
“During this period, we witnessed property values grow a great deal both locally and nationally in 2020, and especially 2021, primarily as a result of record low interest rates.
“They have fallen back somewhat in 2022, but still remain a long way off their pre-pandemic levels overall.”
There was more subdued growth in the rural sector. Pastoral properties showed a 33.6% increase since the district’s last rating revaluation in 2019, with dairy experiencing a modest 3.4% average increase.
The largest increase in the rural sector was land suitable for forestry, which increased 50.5%.
Ōtorohanga commercial property values increased by 44% on average, and property values in the industrial sector increased by 64% since the district’s last rating valuation.
Commercial and industrial land values also increased by 49% and 96% respectively.
The average capital value of an improved lifestyle property has increased by 48% to $868,000, since 2019 while the corresponding land value for a lifestyle property increased by 43% to $501,000.
“Rural values in Ōtorohanga are underpinned by a strong lifestyle market,” Stuart said.
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 October 1 2022, and do not include chattels.
Any changes in the market since that time will not be included in the new rating valuations.
If owners do not agree with their rating valuation, they have a right to object through the QV objection process before April 27 2023.
