Hawke's bay Homes hit by values decrease

Most homes in the Hastings district have been given a lower value now than they were given in 2007.
Valuations carried out to help the council set next year's rates indicate average residential property values have dropped 5 to 10 per cent below 2007 levels, with values in parts of Flaxmere and some coastal areas falling even further.
Bevan Pickett, Napier manager of Quotable Value, which carries out the triennial rateable valuations, said the market had recognised the risk of being on the beachfront in Te Awanga and Haumoana, and values of properties in the coastal hazard zone had decreased the most.
"The coastal hazard zone has its own limitations regarding building and what landowners can do in those areas," he said.
Average capital values in the rural villages and coastal areas are 6.5 per cent lower than the 2007 district valuations.
Values in some parts of Flaxmere increased significantly during the property boom, Mr Pickett said, and have now had a correction. On average, capital values across Camberley and Flaxmere have dropped 9.4 per cent since 2007.
But even homes in upmarket Havelock North have dropped in value, with capital values on average 7.9 per cent lower than three years ago.
"We've seen moderate decreases across all sectors of the market," Mr Pickett said, adding that his was fairly consistent with other districts around the country.
Overall, the capital value of the 30,933 properties in the district dropped 5.4 per cent to $15.19 billion.
The corresponding land value has fallen 4.8 per cent to $7.9 billion.
Mr Pickett said less demand for vacant land since the recession and less building has "trickled down" into the property market.
He expected the new valuations might make sellers more likely to accept that the market has dropped.
"They might be more conditioned to realise their houses are worth less than they were before, so sales numbers may pick up."
But lower valuations do not necessarily mean cheaper rates.
Council expenditure determines rates levels and valuations are used to allocate rates to individual properties.
Lifestyle properties dropped 5.8 per cent on average to $580,500, with the average land value falling 7.9 per cent from three years ago to $319,000.
Rural property also fell below 2007 levels by 5 to 10 per cent.
Commercial and industrial properties have fallen on average 5.6 per cent since 2007. CBD land values have generally decreased although Nelson Park had a notable increase of 20 per cent.
Land values in some areas have increased as a result of industrial rezoning.
Owners will receive notification of their property's new rateable valuation by post this month.
Copies of the valuation roll are available for inspection at Hastings District Council offices. Owners have until November 26 to lodge objections to the new values.