Media Release
11 November, 2016

Hutt City rating revaluation shows jump in residential property values

The Hutt City Rating Revaluation for 2016 is now been confirmed and property owners will soon receive a 2016 Notice of Rating Valuation with an updated rating value for their property.

The new rating valuations have been prepared for 40,055 properties on behalf of the Hutt City Council by Quotable Value (QV).

Rating valuations are fit for purpose valuations carried out on all properties in New Zealand, usually once every three years to help local councils set rates for the following three year period. Rating values are just one of a number of factors councils use to allocate rates.

The updated rating valuations should reflect the likely selling price of a property at the effective revaluation date, which was 1 September, 2016, but do not include chattels. However, council rates will not be updated based on the new 2016 rating valuations until 1 July 2017.

QV ratingvalue Central Manager, Justin Latchford said, “The total ratable value of the 40,055 properties within the city is now $22.13 billion, with the land value of those properties now $10.74 billion.”

“The Hutt City residential price index graph shows the market has increased sharply since the end of 2015. Prior to this there had been a long stagnant period in the market following the global financial crisis and values were lower than the previous peak of 2007, right up until late last year.”

“The average residential house rating value has increased by 24.0% since the last rating revaluation in 2013 to $496,000, with the corresponding land value increasing by 21.0% to $249,000.”

“The strongest value movement was for lower to mid-range properties with higher end properties showing more modest value increases since the last rating revaluation.”

“Average rating value for flats and townhouses has increased by 25% to $300,000, while the corresponding average flat and townhouse land value has increased by 23% to $155,000.”

“Commercial and industrial properties have also increased, with most developed properties rising in rating value between 8.0% and 24.0% on 2013 levels.”

“Rural and lifestyle properties have also increased in value since 2013, with the average improved lifestyle property rating value increasing by 13.0% to $693,000, with the corresponding average land value for a lifestyle property increasing by 18.0% to $248,000.”

“It is important to realise that the effective rating revaluation date of 1 September, 2016 has passed and we have seen very strong value growth in the market since then, which can’t be included in the new rating valuations.”

“This means in many cases a sale price achieved in the market today is likely to be higher than the new rating valuation set as at 1 September, 2016 and this is to be expected as growth in the market has continued since then.”

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.

A change in a rating value doesn’t necessarily mean that rates will change, it depends on the local council’s requirements and how rating values have changed over the rest of the area. If all rating values drop by the same amount, your percentage remains the same, and so do your rates, but this does depend on your council’s funding requirements.

New rating values will be posted to Hutt City property owners after 14 November. If owners disagree with their rating value they have the right to object. The objection close-off date is 23 December, 2016. Objections can be lodged online at www.ratingvalues.co.nz or call 0800 787 284 to request an objection form.

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