Nelson homes increase in value by 8.7 per cent

Friday 20 November 2015

Nelson City Council has just released its latest rateable valuations, which shows an average increase of 8.7 per cent for residential property values.

Recent revaluations of the city’s rateable properties has been undertaken by Quotable Value, on behalf of the Council.

Mayor Rachel Reese says the new valuations show a positive trend, with more house sales year on year and a steady rise in house sale prices through 2015.

“Nelson residential properties have increased in value by an average of 8.7 per cent, which shows how strong our housing market is. I’m not surprised more people want to live here and are purchasing property.”

“At the same time, while the new valuations are in line with national trends, which have all shown increases over the past three years, Nelson property is still much more affordable with house prices below the national average.”

Council's Corporate Services Group Manager Nikki Harrison says the revaluations are undertaken every three years by Quotable Value.

"Quotable Value's assessment of the city’s rateable properties reflects the value of a property, excluding chattels.

"A process which is used all over the world, called 'mass-appraisal' is used to calculate the values, which takes into consideration a property's individual attributes, as well as local sales," Ms Harrison says.

“While we have been discussing capital value, which includes both the land and building values for a property, Council only uses land value for rating purposes. These have increased by an average of 4.2 per cent for residential property, mainly due to increased demand.”

New rateable land values will be used for rating purposes from 1 July 2016.

“The Council has yet to make any decisions on the levels of rates for 2016/17. The revaluation does not generate any additional revenue for the Council. Rather, the updated valuations means rates will be spread between ratepayers in different proportions than before.

“For example, if your land value has increased by more than the average for the city you can expect your rates to increase by more than the average. If your land value has decreased, this will usually mean your rates increase will be lower than the average and in some instances rates may decrease,” Ms Harrison explains.

The revised rating values are effective as at 1 September 2015 and the new notices of valuation have been posted to owners and ratepayers.

The District Valuation Rolls will be open for public inspection, free of charge, during regular office hours, at the Nelson City Council office: 110 Trafalgar Street, Nelson or on our website nelson.govt.nz.

Objections to the revised valuations must be lodged, in writing or on line at www.qv.co.nz no later than 15 January 2016.

Objection forms are available from Nelson City Council or Quotable Value Limited and should be posted to:

Quotable Value Ltd – Business Support
Private Bag 39818
Wellington Mail Centre
LOWER HUTT 5045

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