Strong value increases seen across Kāpiti Coast District over the past three years

Newly-released rating revaluations for the Kāpiti district show strong increases in property values.

Mayor K Gurunathan says the rise in property values over the past three years reflects the very real appeal of the Kāpiti district.

“With a relaxed lifestyle that appeals to young and old alike, a strong, growing economy and improving connections in the region, it’s a great place to live.”

The new rating valuations have been prepared for 25,599 of properties on behalf of the Kapiti Coast District Council by Quotable Value (QV) and property owners will soon receive a 2017 Notice of Rating Valuation with an updated rating value for their property.

The rating revaluation figures compiled by QV show the total rateable value of the 25,599 properties within Kapiti Coast District Council is now $15.08 billion with the land value of those properties now valued at $7.32 billion.

The average house value in the district is now $541,500, an increase of 37% on capital values three years ago.

The updated rating valuations should reflect the likely selling price of a property at the effective revaluation date, which was 1 August, 2017, but do not include chattels.

Property rating valuations are one factor used by councils to distribute rates across the region and councils are required to ensure property values in the district are revalued at least every three years. Council rates will not be based on the new 2017 rating valuations until 1 July 2018.

QV General Manager, David Nagel said, “Demand has increased strongly for residential properties on the Kapiti Coast which has seen overall residential capital and land values increase significantly over the past three years since the last revaluation on 1 August, 2014.”

“There was some concern that the new Expressway may have a negative impact on property prices but so far there has been no conclusive recent evidence of properties close to the expressway selling at a discounted rate. The Expressway had previously been designated for several years and construction was underway at the time of the last revaluation.”

Kāpiti Coast District Council Group Manager Corporate Services Wayne Maxwell says it’s important to remember that an increase in the rateable value of a property does not mean an equivalent rates increase for that property.

”The total amount of rates collected by the Council from ratepayers across the district isn’t affected by an increase in property values,” says Mr Maxwell.

“Valuations are one of the factors that determine how rates are allocated across the district, with a combination of land value, capital value and fixed charges playing a part, with differential rates applied in some cases.”

Typically, where a property’s revaluation exceeds the average revaluation increase, the property will have a higher rates increase than the average. Conversely, a property that has a revaluation below the average revaluation increase will have a lower rates increase than the average.

“The Council are mindful that some homeowners will be concerned about the possible impact on rates of an increased valuation,” says Mr Maxwell.

“We’ll be looking carefully at the impact of the revaluations on rates and affordability across our district as part of our rating review, which is currently underway. This work will be completed before July next year, when rates will start to be based on the new valuations. Any proposed changes to how we spread rates costs across the district will be shared with the community for their feedback early in 2018, along with our draft long term plan.”

It is helpful to remember the effective rating revaluation date of 1 August, 2017 has 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 1 August, 2017 and that rating valuations are not designed to be used as market valuations for raising finance with banks or as insurance valuations.”

The updated rating valuations are independently audited by the Office of the Valuer General, and need to meet rigorous quality standards before the new rating valuations are certified.

New rating values will be posted to property owners after 25 October, 2017. If owners do not agree with the rating value they have the right to object. The objection close-off date is 8 December, 2017.

To find out more about objecting or to lodge an objection online go to www.ratingvalues.co.nz or call toll free 0800 787 284.

Additional information:

Residential property valuations

• The lower end of the market has shown considerable movement from a low base with areas such as Ōtaki Central and Ōtaki Beach seeing land values rise on average by 45%.

• Waikanae Beach area saw the largest increase in land values with most increasing at least 55% with the exception of beach front land values which have increased 45%.

• Residential dwellings in Paekākāriki increased on average by 27% and residential land values increased by 30%.

Commercial property valuations

• The average capital value for developed commercial property increased by 16% since the last rating revaluation in August 1, 2014, and the average capital value for developed industrial property increased by 13% over the past three years.

• Commercial retail values in the Ōtaki township area increased by 5% while both the commercial and industrial property around the highway areas have decreased

• Waikanae commercial values have increased while industrial values have held steady.

• Paraparaumu and Raumati commercial and industrial values have increased by between 15-20% over the past three years.

Rural and lifestyle property valuations

• Rural and lifestyle properties have seen both capital and land values increase since the 2014 revaluation but at a more modest rate than residential properties.

• The average improved lifestyle property capital value increased by 19% to $766,000 with the corresponding average land value for a lifestyle property increased by 22% to $412,000.

Additional information is available from QV on their website –

www.ratingvalues.co.nz,

You can also watch this video -

https://www.youtube.com/watch?v=DLh3nSC7CxU&t=18s.

ENDS

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