Massive jumps in land values

By GLEN PRENTICEMANY Far North landowners face big rate rises this year after new figures which show their land values have jumped dramatically - with increases of up to 8650 per cent.
Quotable Value is sending its three-yearly property valuations to households across the district which show that land values in the central, northern and western parts of the Far North have risen steeply since the last valuation in 2004.
Some property owners may have fallen over backwards when they read their valuations which show their values had soared, with the 10 highest land value increases ranging between 3000 and 8650 per cent.
The land value on one section in mid Far north has jumped from $10,000 to $750,000, in three years, while another has gone from $400 to $35,000.
Property valuations are made up of land and capital value and councils base their rates on land value. Far North District Council revenue and policy manager Chris Ellington said the valuations reflected a reversal of property trends in the district.
He said Kaikohe, the Hokianga, northern parts of the district and Whangaroa had experienced significant land value growth compared with Kerikeri, Kawakawa and the Bay of Islands where the rate of growth was well below the median increase for the district. In Kaikohe the median land value increased by 295 per cent since 2004, far more than the district's median of 135 per cent.
In Hokianga that figure was 174 per cent, and the very Far North and Whangaroa had median land value rises of 157 per cent and 156 per cent. But the increase for Kerikeri/Paihia was only 61 per cent and Kawakawa/Russell 117 per cent.
"Put simply, this means that it's catch-up time for the Far North's traditionally slower growing communities," he said.
"The balance has shifted with the result that rates will rise for most ratepayers in these communities, while some property owners in and around the Bay of Islands can expect to pay less rates next year."
He said one reason for the dramatic increases for some properties was because the valuer-general had insisted that properties, especially smaller rural lots, should be valued according to their highest and best use.
It meant that many rural properties were valued as if they were lifestyle blocks even if the property was only being used for grazing animals.
Quotable Value representative are due to formally present their findings to council next Thursday.
If you object to your valuation contact Quotable Value 0800 787 284 or visit their website www.qv.co.nz. Objections must by filed before February 22.