Rotorua property valuations: Suburb by suburb

SALE POINT: Real estate agents say new property valuations will not affect sale prices. PHOTO/FILE

New rateable property valuations for Rotorua have decreased on average 2 per cent but that is unlikely to affect house sale prices, local real estate agents say.

Residential capital values released earlier this month by Rotorua District Council show a drop of 2 per cent from 2011, while land values decreased 6 per cent.

The council has received 219 objections - from a total 29,873 properties - to the revised valuations to date.

Professionals McDowell Real Estate sales manager Phil Hereford said new valuations created uncertainty among buyers, however the market, not rateable values, would ultimately dictate what properties would sell for.

"The rateable value is still the most asked question we get from purchasers but has little impact on the final contract price.

"House prices will be more influenced by a superior location and presentation," Hereford said

Harcourts Rotorua sales agent Hielke Oppers said revised valuations should not impact on house sales, nor disadvantage vendors or purchasers.

Properties sold both "significantly higher, and significantly lower" than the rateable value, he said.

"Most buyers are well educated to know what the property is worth.

"Vendors are more likely to decide to sell based on their personal circumstances - not necessarily what the market is doing," Oppers said.

"The capital value is only a rough guide to the market but it won't determine what buyers consider good, or bad value."

Council rates lead (finance) Murray Ramage said the number of objections it had received so far was "within normal expectations".

Rotorua deputy mayor and sustainable economic growth portfolio head Dave Donaldson said the rating values were a market snapshot at July 1 this year.

"We're hearing that the market is on the up which should have a positive effect on future property values," he said.

Developing Rotorua's economic base by growing existing and attracting new businesses was a priority and the council was working towards a number of goals that could influence property valuations in future if demand for housing in Rotorua increased, he said.

"We want Rotorua to be an attractive place to live, work and do business so we're striving hard to achieve that.

"It should translate into increasing demand for residential properties and, in turn, increased property values."

Under the new valuations, the capital value of all properties had increased 0.1 per cent to $12.88 billion, while land value dropped 1.7 per cent to $6.36 billion, since 2011, said council chief financial officer Dave Foster.

Capital values dropped on average 7 per cent in Lake Tarawera and Lake Okareka, and 6 per cent in Koutu and Ohinemutu.

Average values for houses in Tarawera and Okareka areas were the highest - $765,000 - in the region, compared with $191,500 in Ohinemutu and Koutu.

A total of 3129 properties had sold since 2011 - down 10-15 per cent from the previous three years.

Ratepayer Jane Walters said capital valuations gave home owners a guide as to what their property was worth if they were selling.

"To the average buyer the capital value means a lot," she said.

Mrs Walters said the valuation on her own home, and a rental property she owned, had dropped $30,000 and $41,000 respectively.

"I would be concerned at the valuation drop if I were selling either property," she said.

Property owners have until November 17 to object to their new valuation.