Carterton property owners will soon receive new three-yearly rating valuations in the post.
Updated values have been prepared for all 5,248 properties in the district by independent valuers Quotable Value (QV), reflecting the likely price a property would have sold for on 1 September 2023, not including chattels.
Since the district’s last revaluation in 2020, the value of residential housing has increased by an average of 16.5%. The average house value is now at $615,000, while the corresponding average land value has increased by 27.7% to a new average of $275,000.
QV Lead Valuer Blake Ngarimu said it had been a “turbulent” 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, which continued until the end of May 2023.
“Carterton experienced significant value growth throughout 2021 much like the rest of New Zealand, peaking with an average value of just under $780,000 – a 44% increase over the 2020 revaluation,” Mr Ngarimu said.
“Though property values have softened over the past 18 months or so due to increased interest rates, they’re still above where they were at the 2020 revaluation. The market stabilised at the start of 2023, seven months prior to the revaluation date of 1 September, with no subsequent value declines being recorded. However, the market has experienced some slight growth since that revaluation date.”
The average capital value of an improved lifestyle property has increased by 18.9% to $879,000, while the corresponding land value for a lifestyle property increased by 13.1% to $400,000. “Carterton’s lifestyle market has seen strong growth since 2020,” Mr Ngarimu added.
Meanwhile, commercial property values have increased by 21.1% and property values in the industrial sector have increased by 55.6% since the district’s last rating valuation in 2020. Commercial and industrial land values have also increased by 25.3% and 96.6% respectively.
“The strongest industrial growth is centred in the Waingawa, which boarders Masterton. The increase for industrial properties reflects the low vacancy rate pushing up rents for industrial properties over the three-year period. The low vacancy rate pushed land values up over 2021 and 2022. Although this has come back from its peak due to higher construction cost, land values are still significantly above their 2020 levels,” said Mr Ngarimu.
Forestry and pastoral dominate the local rural sector, with a 42.1% increase in capital values for the former and a 22.7% increase for the latter.
“The rural market was very buoyant through 2020 to the middle of 2022 on the back of strong demand for land for forestry conversion. From early 2023, however, rural markets have largely been subdued, due to pressures from new forestry regulations, commodity prices and rising interest rates. This has resulted in a rapid decline in farm values, especially pastoral properties that were previously sought after for forestry conversion. However, there has been some upward market movements observed from their 2020 levels, driven by the earlier demand forestry conversion of suitable pastoral holdings from both corporate and private investors.”
The total rateable value for the district is now $4.78 billion, with the land value of those properties now valued at $2.68 billion.
What are rating valuations?
Rating valuations are usually carried out on all New Zealand properties every three years to help local councils set 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 1 September 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 through the objection process before 31 May 2024.
Visit the Quotable Value website for more information.
What if I think the new valuation is wrong?
Quotable Value, an independent body, undertakes these revaluation.
You can query your updated rating value by lodging an objection with Quotable Value.
Objections must be lodged before 31 May 2024.
Objections can be lodged online or over the phone. Visit the Quotable Value website [www.qv.co.nz/services/rating-valuations/object-rating] for more information or call 0800 787 284