The total capital value of properties in South Taranaki has risen by 20.4% in the last three years, to be worth $13.9 billion according to the latest district wide property rating valuation conducted by Quotable Value (QV).

The largest increases were in the residential, lifestyle and commercial sectors with properties seeing an average of 86%, 45.8% and 40.7% increase in value respectively, while dairy and pastoral properties saw a small -0.1% decrease.

South Taranaki District Council group manager of corporate services, Marianne Archibald, says it’s important to remember that while property rating values are based on market sales they are only a ‘snapshot’ of the market at a single point in time.

“Because real estate fluctuates over time, a rating value can’t be expected to represent the market value for an extended period, which is why the district is re-valued every three years,” she says.

Property rating values are prepared on behalf of the Council by Quotable Value (QV) using a process called ‘mass-appraisal’; a methodology used all over the world.

Rating valuers consider relevant property sales from the area around the time of the valuation. A market trend is established and applied to similar properties in the area. The mass-appraisal process is also supported with a number of valuation assessments being done on specific individual properties every year. The process for calculating rating values is then audited by the Office of the Valuer General, an independent authority, which is part of Land Information NZ.

Ms Archibald says property owners in South Taranaki will soon receive a Notice of Rating Valuation with an updated rating value for their property.

“The calculation of property rating values and how they impact on rates is complex. Just because your property rating value may show a change, that does not mean that your future rates will change proportionately. Rating values are just one component used to determine the share of the total rates paid, and the total amount of rates collected does not change as a result of the revaluation of properties in the District,” she says.

“If you think of the rates budget like a pie. The pie doesn't get any bigger because of revaluation. Your property’s value just determines the portion of the pie that you're going to pay and ensures your portion is the same as others whose properties are valued the same as yours. Put simply, your rates will be affected if your property value has increased or decreased by more or less than the average movement across the District.”

Ms Archibald says the new rating values will be used from 1 July 2022 when the new financial year begins.

“If you think that your rating value is not accurate, you should object. You can object online at www.qv.co.nz or call Quotable Value on 0800 786 822, 8:30am - 5pm Monday to Friday. Alternatively you can download an objection form on the Council’s website www.southtaranaki.com

The last day for objections in South Taranaki is 19 May 2022. If you have any other questions, please call the Council’s finance team on 0800 111 323,” she says.

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