Over the last three years, residential land values in Nelson have risen by 72 per cent.
A presentation detailing the city's three-yearly revaluation review by Nelson City Council's external valuation service provider, Quotable Value (QV), was heard by elected members at a council meeting yesterday.
The review shows that, over the last three years, there has also been a 40 per cent lift in capital value in the Nelson residential market.
The average house is now worth $875,000 and the average residential land value has risen to $508,000.
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Nelson City Council rates are assessed on land value only.
Property owners can expect to receive a revised Notice of Rating Valuation with an updated rating value for their property in late January or early February 2022, after the audit is completed.
The Nelson residential property market is presently a "sellers' market", with minimal stock for sale and good demand from well-financed out-of-town buyers, a spokesperson said.
They said the major change drivers in the residential market are similar to what is happening in other centres.
Group manager corporate services, Nikki Harrison, says that the revaluation does not generate any additional rates revenue for council.
"Rather, the revaluation means rates will be spread between ratepayers in different proportions than before. It is important that property owners remember that a change in the rateable land value of a property does not mean rates will change by a similar percentage," she said.