A substantial increase in Wanganui property valuations won't affect the council's intention for a nil rates increase, Wanganui Mayor Michael Laws said yesterday.
The total capital value of district properties has increased by 37 percent but Mr Laws said that didn' mean people were earning 37 percent more income.
"Some councils hike rates upon these sorts of valuation increases ? we won't be.
"Rates are too high already," he said. But Deputy Mayor Dot McKinnon was more cautious. "We're hoping for a nil increase," she told the Chronicle last night.
Cr McKinnon said not increasing rates was a policy the Vision Wanganui team campaigned on.
"We have only just received the information about the revaluation and the impact on future years' rating is yet to be analysed.
"There are likely to be some incidence movements in rates, but people shouldn't assume that because their valuation has gone up, they will pay more rates," she said.
Council staff would analyse the revaluation information and its impact on rates from now and March, 2005.
"The scale of the revaluations in the Wanganui District is positive news for the economy; it's the first time in about eight years that Wanganui has seen valuations go up across the board," Cr McKinnon said.
Quotable Value Palmerston North manager Simon Willocks said the increase in values had been substantial across all property types, particularly residential, lifestyle, commercial and industrial areas.
"The residential sector has thrived in the past year with a buoyant economy and relatively low interest rates that's fuelling demand and maintaining the pressure on house prices," Mr Willocks said.
Both local buyers and outside investors were driving property prices up, with the residential market increasing by an average of 40 percent.
This average had been bettered in sought-after beach areas, properties with views and properties in the lower price brackets.
The average value for a residential dwelling was now $119,000, up 43 percent on 2002 levels while the average value of a section is $29,000 an average increase of 72 percent.
Ownership flats increased 36 percent to $91,000. Mr Willocks said homeowners weren't sent survey's asking for information like improvements because it was a logistical nightmare.
"We just don't have the resources," he said. "If people have done work to their properties and they want it recognised (in their valuation) they can put in an objection." There was no cost involved in placing an objection.
Nil rates rise despite new valuations - Mayor
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