Coastal properties hit in latest wave of valuations

Land values for the 21 Haumoana coastal properties regularly hammered by sea erosion have been marked down to as low as $20,000 in the triennial Hastings district revaluation report by Quotable Value (QV).

QV's David Nagel and Bevan Pickett presented details of the report to the Hastings District Council on Thursday.

The new valuations will be one of the tools the council uses to set rates for property owners over the next three years.

The report was peer-reviewed by Logan Stone, which noted the 21 properties on Clifton Rd on the beach between Haumoana and Te Awanga now had land values of between $20,000 to $75,000, whereas in 2010 at the previous review, the values ranged from $75,000 to $160,000.

"In time, these land values will probably decline further as coastal erosion occurs," the peer review said. "We were surprised to see that the capital values for most had only declined 10 per cent, which does not appear to be enough, in our opinion.

Mr Nagel told the council that cashed-up buyers might not have a problem purchasing coastal properties, even with the knowledge it could be short-term investment.

Other people employed a long-term approach and did not want to buy a property which might not be there in 50 years, or might have building restrictions, because of the threat of sea erosion.

And it was the erosion factor which continued to reduce the ability to sell more coastal homes.

Logan Stone's peer review noted eight properties on the northeast end of Ferry Rd in Clive, overlooking the Clive River about a kilometre from sea, had land-value increases exceeding 200 per cent, between $115,000 and $160,000. "The reasons these were previously so low is unclear but their new values are now consistent with other Clive properties."

Mr Pickett said, overall, Hastings' main urban properties had seen little movement from values reviewed in 2010. The average house value was $322,000, down 1.6 per cent.

"Some pockets have had small movements both up and down, while some of the more modest localities had significantly decreased relative to other areas."

Lifestyle blocks decreased on average by 3.6 per cent, more so in areas where commuting distances were longer. An over-supply of vacant lifestyle blocks on the market had been detrimental to values.

Most rural-property values had changed little from the 2010 review and the average pastoral capital value increased by 1 per cent, with land values up by 1.1 per cent.

Horticulture-sector properties had generally decreased in value and viticulture-block values in "less preferred" areas had also reduced significantly. Commercial and industrial properties had average capital value decreases, by 3.1 per and 1.3 per cent respectively. Land values were, on average, unchanged from 2010.

Mr Pickett reported CBD fringe bulk retail space had attracted little demand since Nelson Park was converted into a major retail complex a few years ago.

Hastings ratepayers should receive their property valuations in the post next week and owners have until November 22 to lodge objections.