New rating valuations for Central Hawke's Bay

Central Hawke's Bay property owners will soon receive a Notice of Rating Valuation in the post with an updated rating value for their property.

The new rating valuations have been prepared for 8055 properties on behalf of the Central Hawke's Bay District Council by Quotable Value (QV).

They show the total rateable value of the 8055 properties within the district is now $9,126,287,050, up 54.3 per cent from three years ago, with the land value of those properties now valued at $5,939,140,800, an increase of 61.7 per cent.

QV's Hawke's Bay regional manager Andrea Christie said "We have seen the biggest shift in values across the district in many years, so it's important to remember that a large increase in your rating valuation won't always correlate to an equally large increase in your rates.

"Rating values are just one of a number of factors councils use to allocate rates, and the total amount of rates required for the district does not change because of the revaluation of the district."

She said residential properties and vacant land had been in "red-hot demand" since CHB's last rating revaluation in 2018, with residential land values increasing by 128.5 per cent over that time.

"It's primarily been driven by strong demand and relative affordability. We have also seen an increase in prospective purchasers looking for blocks with development potential."

Most commercial and industrial properties have had an increase in value, despite the challenges faced in a COVID-19 environment. The average capital value for developed commercial property increased by 50.4 per cent since the previous rating revaluation in 2018, and the average capital value for developed industrial property increased by 39.8 per cent over the past three years.

"The strongest increases have been in well presented, modern properties with good earthquake ratings. Seismically challenged properties have not sold as well due to the increasing costs to strengthen," Christie said.

The value of pastoral units increased by an average of 42 per cent since the district's 2018 revaluation, with dairy blocks experiencing a lower increase of 20 per cent.

"There is continued demand for quality farms that are well located and have a good balance of contour with finishing ability. A notable observation was the continuing trend of traditional hill properties, with land suitable for planting being sold for woodlot/carbon purposes," Christie 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 1 September 2021, and do not include chattels.

Any changes in the market since then won't be included in the new rating valuations, which means a sale price achieved in the market today may be different to the new rating valuation set as at 1 September 2021.

The updated rating valuations have been independently audited by the Office of the Valuer General to ensure they meet rigorous quality standards before being certified. Rating valuations are designed to reflect the likely selling price of a property at the effective revaluation date and are not intended to be used as market valuations for raising finance with banks or as insurance valuations.

A schedule of new values is available in hard copy from the Central Hawke's Bay District Council office, as well as QV's website at www.qv.co.nz.
Sales information is also available on the QV website to allow ratepayers to research local sales and valuations.

New rating values will be posted to property owners after Wednesday, March 30.

If owners do not agree with their new rating value, they have the right to object before May 10 on the QV website or at the council's offices.
Council rates will be updated based on the new 2021 rating valuations from July 1.