Western Bay of Plenty property valuations reach $42.6b for district, $1.05m for the average property

Western Bay of Plenty's kiwifruit orchards, with Tauranga City and Mauao in the background. Photo / Mead Norton

The value of Western Bay of Plenty homes has increased by 55 per cent in the past three years, with the average property value now worth $1.05 million as the district records a total rateable value reaching $42.6 billion.

Western Bay of Plenty District Council released its updated three-yearly property revaluations last week, revealing the corresponding average land value had also increased by 72 per cent to a new average of $648,000.

The rating valuations were completed by Quotable Value (QV) following the council’s last revaluation in 2019. The valuation process is audited by the Office of the Valuer-General.

The council says although property values had gone up, it does not mean a corresponding increase in rates, and any rates increase was determined by a property’s value increase compared with the average increase across the district.

At Pukehina, Maketū and Paengaroa, the average capital value increased by 61 per cent, while the average land value rose by 71 per cent.

Ray White Pukehina owner Rochelle Carter said the increase in valuations was needed.

“The last valuations were done in July 2019 and they do not reflect the value of the property even in today’s market,” she said.

Carter said the area was no longer viewed as only a holiday destination, but a desirable place to live with more permanency than in holiday homes.

Pukehina was seen “as an attractive place to live”, she said.

“We are achieving sale prices nearly double the rateable value, depending on the location of the property.”

Buyers were often disputing the list price versus the rateable value, she said.

Carter said she believed the valuations would result in an increase in rates for people, “although the increase will be reflecting a more accurate view of the property they own”.

At Waihī Beach, resident and ratepayer advocate Keith Hay felt differently, citing concern that some people might not be able to afford an increase in rates.

“There are a lot of retired people at the beach on a fixed income and that’s part of their cost, the rates, and we don’t get a hell of a lot for it.”

Hay said the town’s stormwater system was in dire need of upgrading, especially in light of recent flooding,

Ray White Pukehina owner Rochelle Carter.

“It’s not just the pipes, though. They don’t clean up the catchments,” he said.

“It’s not acceptable.”

Hay said the valuation of his land doubled from $550,000 to $1.1m.

He said he had partly anticipated such an increase after seeing a three-bedroom 1960s-era house down the road sell for $1.8m a few days ago.

Personally, Hay estimated his rates would increase from $1180 to $5400.

Hay accepted the need to pay rates but felt the benefits of doing so needed to be equitable.

Hay believed, based on the valuation of properties, a lot of rates Waihī Beach residents were paying were going to other parts of the district.

The council’s group manager of corporate services Adele Henderson said the valuations were important as they provided a snapshot of the district and were used for the sole purpose of rating.

They did not reflect the value of a property on the open market, nor did they reflect the sale price of any property.

In a statement, Henderson said: “We use these valuations as a guide for setting your rates.”

The revised rating valuations were effective as of September 1, 2022. These values would be used to set rates for the 2023/24 year.

Henderson said she wanted to stress that an increase in property value did not necessarily mean people paid more in rates.

“Any rates increase is determined by your property value increase compared with the average increase across the Western Bay Of Plenty district,” she said.

“Some valuations will go up, others will go down - some won’t change.”

Henderson said there had been extremely large growth across all sectors of the district since the last valuations.

“This has been driven by a number of factors - demand for housing, a steady increase in residential, lifestyle and commercial properties, high gains for kiwifruit orchards, as well as dairy and pastoral land values where there is opportunity for diversification into horticulture,” Henderson said.

Katikati-Waihī Beach Residents and Ratepayers' Association secretary Keith Hay. Photo / George Novak

The revaluations also noted an increase in the rural sector, with average capital values for horticultural property increasing by 52.1 per cent and pastoral properties recording a 42.1 per cent increase. Dairy had a 43.1 per cent increase.

The demand for lifestyle development near major settlements had also been a factor in these rural value increases, Henderson said.

Capital values for commercial property increased by 48 per cent on average, and property values in the industrial sector increased by 68 per cent. Commercial and industrial land values had also increased by 81 per cent and 138 per cent, respectively.

The average capital value of an improved lifestyle property increased by 50 per cent to $1,582,000, while the corresponding land value for a lifestyle property increased by 46 per cent to $905,000.

QV national revaluation manager Tim Gibson said analysis showed the total rateable value for the district was now $42.6b, a 51.2 per cent increase since the district’s last revaluation in 2019, with the land value of those properties now valued at $23.7b, a 57.1 per cent increase.

“It will come as no surprise that residential property values are now much higher than they were in 2019. During this period, we’ve witnessed property values grow a great deal both locally and nationally in 2020 and especially 2021, primarily as a result of record-low interest rates. They’ve fallen back in 2022 - however, they remain a long way off their pre-pandemic levels overall.”

In response to Hay’s concerns, the council’s general manager of infrastructure Garry Allis said it had a regular maintenance programme for stormwater drains, culverts, and catchpits. Maintenance checks were specifically done prior to predicted heavy rain events.

An inspection two weeks after the May 29 flash flood found a single outlet pipe blocked and not functioning. The other 37 were working despite half needing their sumps sucked out.

This has been completed, and all catchpits in Athenree and Waihī Beach were “currently being sucked out”.

Also in response, Henderson reiterated that although property values had gone up, it did not mean a corresponding increase in rates.

“It is the proportional change compared to the rest of the district.”

“For those on low incomes, they can seek an option of a rates rebate and can contact the council for more information,” Henderson said.

Letters from QV outlining people’s new valuations were sent out last week.

Kiri Gillespie is an assistant news director and a senior journalist for the Bay of Plenty Times and Rotorua Daily Post, specialising in local politics and city issues. She was a finalist for the Voyager Media Awards Regional Journalist of the Year in 2021.