Strong value increases seen across Marlborough District over the past three years

The Marlborough District Rating Revaluation for 2017 is now confirmed and property owners will soon receive a 2017 Notice of Rating Valuation with an updated rating value for their property.

The new rating valuations have been prepared for 26,566 of properties on behalf of the Marlborough District Council by Quotable Value (QV).

Rating valuations are carried out on all properties in New Zealand, usually once every three years specifically 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. Marlborough District Council rates will not be updated based on the new 2017 rating valuations until 1 July 2018.

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

The rating revaluation figures compiled by QV show the total ratable value of the 26,566 properties within Marlborough District Council is now $19.79 billion with the land value of those properties now valued at $9.37 billion.

QV registered valuer Richard Kolff says demand has increased strongly for residential properties which has pushed prices up over the past three years since the last revaluation.

“Blenheim and Picton residential values have increased significantly and lower price bracket properties have been in high demand. Typically investment rates of returns for residential properties that are well located and maintained are now in the 6.5% to 8.0% range,” said Mr Kolff.

Further information on how Marlborough residential property values compare to other districts and to all of New Zealand can be found at www.qv.co.nz/property-trends/residential-house-values.

“The 2016 Earthquake has had little effect on the Seddon/Ward residential market overall,” said Mr Kolff.

Unrepaired earthquake damage where known has been included in the new rating valuations but property owners who believe damage hasn’t been included can contact QV by calling toll free 0800 787 284.

Commercial and industrial properties have also seen value increases, with the average capital value for developed commercial property increasing by 11.8% since the last rating revaluation in 2014, and the average capital value for developed industrial property increasing by 12% over the past three years.

Rural and lifestyle properties have also seen values increase since 2014 with the average improved lifestyle property capital value increasing by 12.5% to $580,000 with the corresponding average land value for a lifestyle property increasing by 9% to $311,000.

Richard Kolff says dairy farms in the area have seen a modest lift in value levels which correspond with increased dairy pay-outs.

“Vineyard values have increased significantly and are back up to 2007 value levels prior to the global financial crisis. There have been more than 2200 ha of new vineyard plantings since 2014, virtually all being Sauvignon Blanc,” he said.

Marlborough District Council Financial Services Manager Murray South says it’s helpful to remember the effective rating revaluation date of 1 July 2017 has passed and any changes in the market since then won’t be included in the new rating valuations.

A sale price achieved in today’s market may be different to the new rating valuation set as at 1 July 2017.

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 27 September, 2017. If owners do not agree with the rating value they have the right to object. The objection close-off date is 3 November 2017. To find out more about objection or to lodge an objection online go to

www.marlborough.govt.nz/services/rates/rateable-valuations

or call toll free 0800 787 284.

ENDS

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