Porirua City property rating revaluation shows jump in value

Media Release
23 November, 2016

Porirua City property rating revaluation shows jump in values over past year

The Porirua City Rating Revaluation for 2016 is now 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 19,176 properties on behalf of the Porirua 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 rating revaluation figures show the total ratable value of the 19,176 properties within Porirua city is now $10.56 billion, with the land value of those properties now valued at $4.11 billion.”

“The average residential house capital value has increased by 24.0% since the previous rating revaluation in 2013 to $486,000. The corresponding land value has increased 18.0% to $189,000 over the same period.”

“The strongest value movement has been seen in lower to mid-range value properties while higher end properties have seen more modest value movement since 2013.”

“The average capital value for flats and townhouses has increased by 20.0% to $335,000 since the last rating revaluation in 2013; while the corresponding average land value for flats and townhouses has increased by 19.0% to $133,000 since 2013.”

“Commercial and industrial properties have also seen value increases, with the average capital value for developed commercial property increasing by 11.5% since the last rating revaluation in 2013, and the average capital value for developed industrial property increasing by 25.0% over the past three years.

“Rural and lifestyle properties have also seen values increase since 2013 with the average improved lifestyle property capital value increasing by 12.0% to $1,116,000, with the corresponding average land value for a lifestyle property increasing by 6.0% to $493,000.”

“It is important to remember 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.

This revaluation has resulted in the largest increase in Porirua City property rating values since 2007 and will impact on the distribution of rates across the various sectors and suburbs of the City. The rating revaluation only redistributes the rates across the rateable properties of the City and does not increase the total rates requirement for the City.

If Council’s total rates requirement did not change from year to year and every property increased in value by the same percentage increase then every property would pay the same total rates as last year. However the property rating values have changed by varying percentages both individually and within sectors and this means that those properties with a higher percentage increase in rating value than the average increase will have a higher percentage rates increase than the average property, while those that have a lower percentage increase in rating value will have a lower percentage rates increase than the average property.

New rating values will be posted to property owners in Porirua City after 28 November, 2016. If owners do not agree with the rating value they have the right to object. The objection close-off date is 13 January, 2017. Objections can be lodged online at www.ratingvalues.co.nz or call 0800 787 284

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