Hastings rating valuations up

Havelock North values have risen 14.8 per cent and Hastings rural land 18.1 per cent over three years. PHOTO/FILE HBT130396-05

Rising house values have been confirmed by a revaluation of Hastings District, with the average increase 17.9 per cent over the three years to August 1 while the rural sector rose 18.1 per cent.

The valuations of 31,662 properties were undertaken by Quotable Value (QV) and commissioned by Hastings District Council, designed to reflect the likely selling price of a property at August 1 by using sales data for recent sales of similar properties.

New building and consents were also taken into account but chattels were not.

Frimley, Mahora and Mayfair values rose 19.6 per cent to $337,600.

Hastings Central rose 21.9 per cent to $384,500.

Parkvale rose 17.3 per cent to $310,000.

Akina and Raureka rose 23.7 per cent to $314,000.

Camberley and Flaxmere rose 15.6 per cent to $199,000.

Havelock North rose 14.8 per cent to $505,000.

Rural and coastal settlements rose 16.7 per cent to $530,000.

QV valuer Bevan Pickett said growth was particularly strong in the entry and investment areas of the house market "but solid growth has been seen across most properties with an average increase of 17.9 per cent over the past three years".

He said a shortage of desirable houses for sale "continues to drive values up", resulting in the average house sale price now higher than on August 1.

Rural values were up by 18.1 per cent, with the pip-fruit industry going "from strength to strength" with increasing values supported by new post-harvest facilities.

Pastoral properties enjoyed a steady increase in value "and are generally well ahead of 2013 values".

"Lifestyle properties have caught on to the growth of the residential sector in recent months although some of the more remote localities have not seen significant value changes in value since 2013. The average change for the district is a 14.2 per cent."

Commercial and industrial property value movements were less consistent in growth, with an average increase of 7.6 per cent in values since the 2013 rating revaluation.

Added Valuations director Rob Douglas said the overall increase in house prices was lower than expected.

"They seem consistent with some of the statistics, but likely fail to reflect some of the more current market movement, particularly in the months from May to August, likely due to the delay in property sales data being available," he said.

"We expect most properties currently on the market will continue to sell above the new rating valuations."

A greater increase in commercial property values was also expected.

"Demand for quality investment properties has been exceptional recently. The rating values, done on a mass-appraisal basis, are generally unable to reflect the specific lease terms so critical to the market value.

"We would encourage people not to place too much reliance on their rating valuation assessment. As QV say, they are just a mass-appraisal assessment, and are unable to adequately consider the individual characteristics of every property."

Hastings mayor Lawrence Yule said the rise in property values did not equate to higher property taxes.

"All it does is determine peoples' share of rates versus their neighbours," he said.

The increase in value across suburbs seemed "reasonably balanced" with no great winner or loser.

Council rates based on the valuations will not take effect until July 1 and are audited by the Office of the Valuer General.