Mayor tells citizens to appeal valuations

By VANESSA BIDOIS

TAUMARUNUI - Worried homeowners in the Ruapehu region who have had up to 25 per cent chopped from property values are being urged to challenge the new figures.

Latest revaluations released by Quotable Value NZ have slashed $145 million off property values in the central North Island district.

Valuations of farms have plummeted 15 per cent on average, those on some urban sections and smaller farm lots have decreased up to 20 per cent and some residential land has lost a quarter of its 1996 value.

The valuations on commercial and industrial land throughout Ruapehu have fallen 8 to 10 per cent.

The Ruapehu District Council will use the valuations to set rates, but many homeowners are upset about the effects of the lower values on their borrowing capacity and on the resale value of their homes.

Instead of knocking on doors and inspecting properties, Quotable Value NZ used a mass-appraisal technique, partly based on the prices at which properties in the area had recently sold.

Ruapehu Mayor Weston Kirton said the valuations were flawed.

They were based on assessing property from a distance and might also be distorted by "fire sales" and one-off fluctuations in the local economy.

He urged property owners to consider lodging objections before the deadline on Monday.

The area manager for Quotable Value NZ, Dave Robertson, said the new valuations were not unusual but a sign of the times.

Property values throughout the country, including Auckland, the Tararua district and Queenstown, had experienced similar falls.

He pointed out that the drops in value occurred before the valuations were carried out.

"We just interpret the sales evidence that we've got in front of us and apply it to the properties that we're valuing."

Adrian Doyle, from Ruapehu Valuations, said the mass-appraisal technique did not work well in small towns.

The technique required large numbers of sales in order to get an accurate assessment.

"This is a problem that has been getting worse over the past nine years."

Mr Doyle said the average house price in Taumarunui was $56,000 but under the new valuations, it would have a 10 per cent decrease in capital value.

Nearly 5000 residential properties were surveyed, with Taumarunui properties dropping 11 per cent in capital value and 25 per cent in land value.

Ohakune showed no change, but Raetihi and Waiouru fell 10 per cent in land and capital value and Ohura dropped 25 per cent in capital value.