Ruapehu property values rise by up to 25 per cent

Demand has been the driver pushing up residential property values in the Ruapehu district.

The latest valuations prepared by Quotable Value (QV) covered off close to 10,000 properties in the district and in some cases valuations have risen by 25 per cent since 2014.

Simon Willocks, a senior consultant for QV, said the latest valuations had also see increases in commercial and industrial properties, as well as lifestyle and farming properties.

"Taumarunui residential values have increased the most, with lower priced properties in high demand and driving up these levels beyond the averages," Mr Willocks said.

It was only in Owhango township where some ageing and poorly maintained properties had kept the valuation increases marginal.

The valuations cover off both capital and land values and will be used by the Ruapehu District Council to set its rates. But council's rates will not be based on these new valuations until July 1 next year.

The latest QV data shows the total rateable value of the 9805 properties within the Ruapehu district is now $4.778 million while the land value is now sitting at $2.539 billion.

Ohakune and National Park boast the highest average capital value at $265,981 and $242,783 respectively. The biggest hike in both capital and land value has been seen in Ohura where capital value has gone up by 24.7 per cent and land values by 38 per cent.
But putting that in perspective, the average capital value in that tiny township sits at $86,578 and land value averages at $3714.

"Commercial and industrial properties have also seen improved values across the district, although property type and quality are main criteria for any value changes," Mr Willocks said.

He said the average capital value for developed commercial properties was $522,000, an increase of 5 per cent since the 20-14 valuations. with industrial properties lifting almost 8 per cent in the intervening three years.

Lifestyle blocks have lifted by an average of more than 13 per cent (to $360,000) and land values for those properties up an average of 9 per cent (to $137,000).

The rural market has also seen a 15 per cent increase across most farming types with honey producers seeking out manuka covered land.

But Mr Willocks said property owners needed to remember the effective rating revaluation date of July 1 this year had passed and any changes in the market since then won't be included in the new rating valuations.

"This means in many cases a sale price achieved in the market today may be different to the new rating valuation set as at July 1, 2017 and that rating valuations are not designed to be market valuations for raising finance with banks or as insurance valuations," he said.

The new valuations are now being posted to property owners. If they do not agree with the valuation they can object. To find out more go to: www.ratingvalues.co.nz