Nelson property owners will soon receive a Notice of Rating Valuation in the post or via email with an updated rating value for their property.

The new rating valuations have been prepared for 23,296 properties on behalf of Nelson City Council by Quotable Value (QV). They show the total rateable value for the district is now $22,690,681,700 with the land value of those properties now valued at $11,249,805,750.

Rating valuations are usually carried out on all properties in New Zealand every three years to help councils set rates for the following three-year period. They reflect the likely selling price of a property at the effective revaluation date, which was 1 September 2024, and do not include chattels.

On average, the value of residential housing has decreased by 9.4% since 2021 with the average house value now sitting at $812,748, while the corresponding average residential land value has decreased by 16.1% to an average of $425,714.

Nelson City Council sets its general and flood protection rates based on land value, with some uniform charges applied. This differs from some other councils that use capital value as a rating base. The land value component ensures a consistent and fair approach to funding the essential services and infrastructure that support the community.

Group Manager Corporate Services Nikki Harrison said that while the updated property values will influence how rates are allocated, they do not impact the total amount collected by Council.

“While the new property values will be used to calculate rates from 1 July 2025, it’s important to remember that revaluation does not change the total amount of rates Council collects—only how they are distributed among ratepayers. If your land value has changed more than the citywide average, this may affect your share of rates, but it does not automatically mean an increase.”

Harrison encouraged property owners to review their new land value carefully, as it plays a key role in determining rates.

“If you believe your new valuation does not fairly represent the value of your property as at 1 September 2024, you have the right to lodge an objection before 2 May 2025.”

QV Nelson/Marlborough manager Craig Russell said rating valuations were a snapshot of the property market at a point in time, with the latest reflecting a market that is still being affected by difficult economic conditions.

“Back in 2021, when Nelson’s rating valuations were last completed, the market was rising rapidly, buoyed by record low interest rates. The market has experienced a downturn since then, with property values falling sharply in the second half of 2022, before a modest decline in 2023, and a relatively stable market in 2024 through to the effective valuation date of 1 September 2024,” he said.

“These latest valuations for Nelson are reflective of a market that is still being affected by strong economic headwinds. The softening in property values has, in part, been due to a high interest rate environment, high inflation, and softening key economic indicators relative to 2021.”

“They also reflect the significant weather event that impacted Nelson in 2022, with properties on the Tahunanui Hills, Nelson East, and Atawhai most affected by the change in market dynamics as purchasers remain cautious in these locations,” Mr Russell added.

Lifestyle property, capital and land values followed a similar trajectory, decreasing by averages of 7.6% and 7.3% respectively.

Meanwhile, Nelson’s commercial property values have increased by an average of 10.7% since the city’s last rating valuation in 2021, with commercial land values growing by an average of 6.8% in the same period. Industrial property and land values also increased by average of 15% and 22% respectively.

“The commercial and industrial market has shown mild to moderate growth overall, with the owner-occupier market performing better than the investor market due to high interest rates,” Mr Russell said. 
 

What impact will the new values have on my rates?

The new values will be used as the basis for assessing rates as from 1 July 2025.

Council uses land value as the basis for its general and flood protection rates. No decisions have been made yet on the rates for 2025/26. The revaluation does not generate additional revenue for the Council; rather, it adjusts how rates are distributed among ratepayers.

If your land value has decreased more than the citywide average, rates increase will generally be lower than average, and in some cases, your rates may decrease. Conversely, if your land value has increased more than the citywide average, you can expect a higher-than-average rates increase. 
 

What are rating valuations?

Rating valuations are usually carried out on all New Zealand properties every three years to help local councils assess rates for the following three-year period. They are not intended to be used for any other purpose, including raising finance with banks or as insurance valuations.

They reflect the likely selling price of a property at the effective revaluation date, which was 1 September 2024, and do not include chattels. Any changes in the market since that time will not be included in the new rating valuations, which often means that a sale price achieved today will be different to the new rating valuation.

Rating valuations are calculated using a highly complex and detailed process that utilises all relevant property sales from your area. A large number of properties will also be physically assessed, particularly those that have been issued building consents in the last three years.

The updated rating valuations are then independently audited by the Office of the Valuer General to ensure they meet rigorous quality standards, before the new rating valuations are confirmed and posted to property owners.

New rating values will be posted or emailed to property owners from 26 March. If owners do not agree with their rating valuation, they have a right to object through the objection process before 2 May 2025.

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