Tuesday 29 November 2016

Christchurch property values rise 9.2 per cent

The 2016 rating revaluation shows the overall value of Christchurch property has risen by 9.2 per cent since the last general revaluation in 2013.

Christchurch City Council contracted independent valuer Quotable Value (QV) to carry out the revaluation of 167,857 city and Banks Peninsula properties this year. Councils must undertake a general rating revaluation of all properties every three years so rates are spread fairly.

Rating Values, (also called Capital Values) are used to work out who pays what portion of the City’s total rates. The new rating values reflect a property’s estimated market value (less chattels) as at 1 August 2016 and will apply to rates from 1 July 2017.

Residential property has risen 7.3 per cent. Average rating values are now at $529,000 for houses and $265,000 for residential sections. Suburbs showing the highest increase in values are Somerfield, Spreydon, Upper Riccarton, Sockburn and Fendalton.

The overall value of commercial properties has increased 8.5 per cent over the past three years, with a corresponding land value increase of 13.7 per cent. While overall industrial properties have seen an increase of 13.4 per cent, with a corresponding land value increase of 14.8 per cent. Commercial and industrial properties in parts of the central city have seen the highest value growth since 2013.

“The Christchurch property market has seen the rate of value growth slow over 2015 /2016 as the rebuild has seen supply meet demand. The market is generally functioning well with clear indications of market trends,” says QV National Revaluation Manager Gail Smits.

Rating valuations are done using a mass-appraisal approach, taking into account recent sales of similar properties and establishing a market trend that is applied to similar properties in the area.

Individual property inspections for new building consent work, subdivisions, objections, and ratepayer requests to have their rating values updated, add to the process.

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.

“We’re keen to make sure people realise that Rating Values do not affect the total rates collected by the Council, which are set through the Council’s Annual Plan. Rating Values do influence how much of this total is collected from each ratepayer,” says the Council’s Acting Chief Financial Officer Diane Brandish.

The last general revaluation was done in 2013, when the Government passed a special Order in Council to value Christchurch properties as if the earthquakes had not damaged them.

This time QV followed the standard rating revaluation legislation, which meant unrepaired earthquake damage was taken into account. About 4,040 properties with unrepaired earthquake damage were identified.

It’s important to remember that while a rating valuation should reflect the likely price a property would sell for at the effective date of the rating revaluation (in this case 1 August 2016), they are not designed to be used as a current market valuation of your property. Current market valuations require an individual inspection of a property and full written report by a Registered Valuer and can be provided to banks for use in raising finance or for other legal purposes. These are a different type of valuation to a rating valuation.

The new rating values go live on the Council’s website by 4pm today and property owners will be sent letters from 2 Decemberwith their new valuations.

If property owners don’t agree with their updated rating value or believe damage to their property is not reflected in their new rating valuation, they have the right to object. The objection close-off date is 31 January 2017, and objections can be lodged online at www.RatingValueObjections.co.nz

or call 0800 787 284 to request an objection form.

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