Whanganui’s average property values stable in latest QV valuation

The average value of residential housing in Whanganui has fallen 0.5% since September 2022. Photo / NZME

Whanganui property values remain stable in the latest Quotable Value figures released on Tuesday.

In a statement, Quotable Value (QV) said the average value of residential housing in Whanganui dropped 0.5% since the last valuation in September 2022.

“The average home value is now $529,000, while the corresponding average land value has increased 1% to $250,000.”

The 2022 valuation revealed that Whanganui’s residential housing value had increased by 53% since 2019, with the corresponding average land value up 96%.

Aramoho, Castlecliff, Gonville and Whanganui East had average land value increases of over 100% in 2022, resulting in average rate rises of close to 20% in some areas for 2023/24.

For 2023/24, the average residential rates rise in Whanganui was 8.1%.

The council’s general rate, which covers community services such as libraries, museums, parks and cemeteries, is based on land value.

QV senior consultant and lead valuer Simon Willocks said rating valuations were “like a snapshot of the market at a point in time”.

“Leading up to the previous rating valuations, in 2022, the Whanganui property market had experienced considerable post-pandemic growth,” he said.

“This time around, the market has stabilised, with most residential properties holding their value.

“Variations from this trend were generally driven by individual property characteristics, including improvements or declining property condition.”

The valuations reflect the likely selling price of a property at the revaluation date.

In Whanganui, that was September 1 last year.

Whanganui Mayor Andrew Tripe said QV valuations were out of the council’s control.

Council chief financial officer Mike Fermor. Photo / NZME

“But it appears some suburbs had their catch-up last time around, and we’re back to normal,” he said.

“What we’ll see is a more even spread [of rates] across the suburbs.

“We are also not quite in the same environment [as 2022], where the average rate rise across the country was around 15%.”

In 2023, the council launched a one-off remission scheme providing up to $500 to ratepayers who had a rates increase of more than $700 and a gross household income of no more than $90,000.

Tripe said elected members were working on potential rate rises for the next financial year.

For 2025/26, the average rise was 2.2%.

The projected increase for 2026/27, in the council’s long-term plan, is 6.6%.

“It’s still pretty tough out there, and councils are still incurring high costs of delivering services, particularly in infrastructure,” Tripe said.

“We don’t know the actual figure yet, but it won’t be 2.2%.”

QV said commercial property values in Whanganui had a similar trend to the residential sector, with an average decrease of -0.5%.

Commercial land values increased by 0.6%.

Industrial property values rose by 7.8%, and land values by 2.5%.

Council chief financial officer Mike Fermor said it is important for residents to understand that changes in property values did not directly translate into the same level of change in rates.

“People often assume that if their property value has increased or decreased, their rates will change by the same amount,” he said.

“For example, if their property has increased by 10%, their rates will also increase by 10%.

“That’s not how the system works.”

He said the council went through a budget-setting process each year, where it calculated the total cost of delivering services and facilities for the district.

“That overall cost is what determines how much we need to collect in rates across the district.

“Property values don’t change the total amount we need to collect.

“They simply help determine how that cost is shared between property owners.”

New rating values will be posted to property owners after March 11.

If owners do not agree with their rating valuation, they can object until April 11.

Valuations were prepared for 22,442 properties in the district by QV on behalf of Whanganui District Council.

Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily Whanganui District Council.