Wairoa property rating values up 40 per cent

The lighthouse on Wairoa's Marine Parade. Photo / File

Recent gains in the housing market have added $654.6 million to the capital value of properties in Wairoa in the past three years - potentially bringing a big financial boost for the district council.

Property owners will soon receive an updated rating value for their property, a Wairoa District Council statement said.

The new rating valuations were prepared for 7209 properties on behalf of the council by Quotable Value (QV).

Rating valuations are carried out on all properties in New Zealand, usually once every three years to specifically help local councils apportion rates for the following three year period.

The councils said rating values were "just one of a number of factors" used to allocate rates.

The council rates would not be updated, based on the new 2018 rating valuations, until July 1, next year.

Overall, the total rateable value of the 7209 properties within the Wairoa District Council is now $2,430,125,000, with the land value of those properties now valued at $1,549,822,000.

QV Property Consultant, Philippa Pearse said capital values had risen from a total of $1,775,553,000 in 2015 to $2,430,125,000.

"Similar increases are being seen in other predominantly rural areas.

"There is demand for residential property in the Wairoa township with values increasing significantly since the last revaluation three years ago,"

"Generally, housing at the lower end of the market has experienced a higher percentage of value growth compared with higher-value properties."

On average, residential RVs rose by 40 per cent from three years ago.

However, some properties in Mahia had increased by more than 200 per cent "mainly due to the coastal influence".

The value of commercial and industrial properties in the district had increased by just over 9 per cent since the last rating revaluation in 2015.

"However, there have been some value decreases particularly of potentially earthquake prone buildings due to the cost to strengthen and difficulty to secure funding for properties with a NBS (new build standard) below 67 per cent."

There is strong demand for quality farms with a good finishing ability. A notable observation was the continuing trend of existing farmers acquiring neighbouring properties to increase their scale of economy.

Pearse said any changes to the market from August 1 onwards would not be included in the new valuations.

New rating values will be posted to property owners after October 17. If owners do not agree with the rating value they have the right to object.

The objection close-off date is November 22.