Tararua Valuations:
Tuesday 21 October 2008, 6:49PM
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The Tararua district property revaluation has now been completed and owners will receive their new rating Values by post from the 22nd October.
Copies of the valuation roll are available for inspection at the Tararua District Council service centres and at www.tararuadc.govt.nz, click on “Rates”.
Quotable Value Manager Simon Willocks advised council that the total capital value of the 11,128 properties within the district has increased 30% to $5.416 billion. The corresponding land value has increased 36% up to $3.378 billion.
The rating valuations have an effective valuation date of 1st September 2008. The effect on rates won’t take place until 1 July 2009.
This is particularly relevant in a market that has reduced from its peak in late 2007 and even with so much global turmoil and uncertainty in the local market, the values for most property types have increased well above the 2005 levels.
In the Residential sector, capital values have increased the most in Eketahuna and Woodville, reflecting the relatively low values in these townships compared with Pahiatua and Dannevirke that have had more modest increases. The same result has flowed through with the land values with Eketahuna and Woodville section values also having the biggest increases. Some key movements of capital value by use are:
Pastoral 20%
Dairy 47%
Residential 43%
The residential capital value increases, by towns, are:
Dannevirke 33%
Woodville 68%
Pahiatua 43%
Eketahuna 91%
Lifestyle property values have increased on average 36%, in line with the residential movements.
Certain sectors in the rural market have performed better over the last three years. The dairy sector and dairy support properties have sold well above the 2005 values, however at the other end of the scale, hill country properties, on the back of the drought and low farm returns have managed to hold their 2005 values.
The commercial and industrial sectors have shown an average increase of just under 20% throughout the district in a relatively low activity market.
Will my rates go up?
Peter Wimsett manager corporate services advises that property value increases do not automatically increase rates. If all land values went up by 30% then there would be no effect on your own rates. This is because the relationship of your rateable value to every other property hasn’t changed.”
“On the other hand if your land value went up just 20% while land values for everyone else went up by 30%, you will benefit and others will pay more to make up for your saving. Unfortunately the reverse is also true.”
For this valuation we expect that hill country properties will benefit and dairy properties will find rates increasing. The smaller towns will catch up on the levels paid in the bigger towns. However for urban properties, only a fraction of rates are charged through land values and this buffers town folk from the effects of localised swings in land values.
Rate increases will occur due to things such as general inflation, particularly the inflationary effects of oil and bitumen. It will also pay for increases to services such as new sewerage and water treatment plants. These are separate issues and are subject to public consultation and should not be confused with the “valuation issue”.
However right now, it is a big concern that Council’s recent pricing for future construction projects have had staggering rises. It is also extremely uncertain how the global financial turmoil will settle in regard to access to funds, commodity and oil prices, and exchange rates. The ancient Chinese curse springs to mind, loosely translated –“may you live in interesting times”!
Lastly, Council is currently working through reviewing the rating system and if changes are made then this will also affect “who pays”.
Mr Wimsett says that a sample rate invoices for 2009/10 will be sent out in April 2009 indicating the effect on individual rates of the new property values and other proposals in the draft long-term council community plan.
Property owners can contact QV directly on 0800 16 44 44 with any queries on the new valuations. Owners will have until 27 November 2008 to lodge objections to the new values.
Ends
Table One – Residential Summary by Location
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Table Two – Revaluation Summary by Sector
| Sector | No. Assts | 2008 CV
($000) |
% Change | 2008 LV
($000) |
% Change |
| Pastoral | 2,169 | $2,469,987 | 20% | $2,064,756 | 22% |
| Dairy | 779 | $1,259,899 | 47% | $1,039,742 | 58% |
| Hort & Specialist | 62 | $50,636 | 45% | $39,545 | 58% |
| Forestry | 75 | $21,843 | 1.1% | $20,076 | 1.2% |
| Lifestyle | 1,473 | $367,690 | 36% | $172,867 | 54% |
| Residential | 5,319 | $775,291 | 43% | $232,283 | 103% |
| Com / Ind | 562 | $171,307 | 17% | $37,986 | 44% |
| Other | 689 | $300,122 | 33% | $71,313 | 60% |
| TOTAL | 11,128 | $5,416,774 | 30% | $3,678,568 | 37% |