QV said they reflected the likely price a property would have sold for on October 1, 2023, not including chattels.
QV North Island operations manager James Wilson said it had been an especially busy last three years for the property market, with record-low interest rates helping to drive significant value growth in 2021, before experiencing a long period of decline throughout 2022 and into 2023.
There had been a small recovery since.
“We’ve witnessed a strong increase in residential property value levels overall since our last revaluation in the Waikato District. Value levels have softened since experiencing a post-Covid-19 property ‘boom’ back in 2021, but they remain significantly higher on average than they were back in 2020,” he said.
“The district posed some unique challenges for our valuers, who not only had to ensure that changing value trends were well analysed and understood, but also to ensure that other impacts, such as underlying land zone, and the impacts of natural hazards and climate change were also recognised.”
Meanwhile, commercial property values had increased by 16 per cent, and property values in the industrial sector had increased by 48 per cent since the 2020 rating valuations.
Commercial and industrial land values had increased by 22 and 59 per cent respectively.
Horticulture continued to dominate the local rural sector, with a 21 per cent average increase in capital values compared to a pastoral increase of 11 per cent, and 7 per cent for dairy.
The total rateable value for the entire district was now $45.9 billion, with the land value of those properties now valued at $27.6b.
What are rating valuations?
Rating valuations are usually carried out on all New Zealand properties every three years to help local councils assess rates for the following three-year period. They are not intended to be used for any other purpose, including raising finance with banks or as insurance valuations.
They reflect the likely selling price of a property at the effective revaluation date, which was October 1 2023, and do not include chattels. Any changes in the market since that time will not be included in the new rating valuations, which often means that a sale price achieved today will be different to the new rating valuation.
Rating valuations are calculated using a highly complex and detailed process that utilises all relevant property sales from your area. A large number of properties will also be physically assessed, particularly those that have been issued building consents in the last three years.
The updated rating valuations are then independently audited by the Office of the Valuer General to ensure they meet rigorous quality standards, before the new rating valuations are confirmed and posted to property owners.
If owners do not agree with their rating valuation, they have a right to object to any information by 24 July 2024.
