New rating valuations on the way for Waikato district
Waikato district property owners will soon receive new rating valuations in the post.
Updated values have been prepared for all 36,483 properties in the district by independent valuers Quotable Value (QV) on behalf of Waikato District Council. They reflect the likely price a property would have sold for on 1 October 2023, not including chattels.
Since the district’s last revaluation in 2020, the value of residential housing has increased by an average of 21%. The average house value is now $721,000, while the corresponding average residential land value has also increased by 22% to a new average of $401,000.
QV North Island Operations Manager James Wilson said it had been an especially busy last three years for the property market, with record-low interest rates helping to drive significant value growth in 2021, before experiencing a long period of decline throughout 2022 and into 2023. There had been a small recovery since.
“We’ve witnessed a strong increase in residential property value levels overall since our last revaluation in the Waikato district. Value levels have softened since experiencing a post-COVID-19 property ‘boom’ back in 2021, but they remain significantly higher on average than they were back in 2020,” he said.
“The district posed some unique challenges for our valuers, who not only had to ensure that changing value trends were well analysed and understood, but also to ensure that other impacts – such as underlying land zone, and the impacts of natural hazards and climate change – were also recognised.”
Meanwhile, commercial property values have increased by 16%, and property values in the industrial sector have increased by 48% since the district’s last rating valuation in 2020. Commercial and industrial land values have also increased by 22% and 59% respectively.
Horticulture continues to dominate the local rural sector, with a 21% average increase in capital values – compared to a pastoral increase of 11%, and 7% for dairy.
The total rateable value for the entire district is now $45.9 billion, with the land value of those properties now valued at $27.6 billion.
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 October 2023, 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.
If owners do not agree with their rating valuation, they have a right to object to any information by 24 July 2024.
Residential housing value changes since 2020 revaluation levels:
Capital Value (CV): This is the total value of a property, including both the land and any improvements (such as buildings) on it. It's an estimation of what the property would sell for at the time of valuation.
Land Value (LV): This is the assessed value of the land itself, excluding any improvements or buildings. It represents the value of the land independent of any structures built upon it.
