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While the value of residential property in Invercargill has dropped, the city is fairing better than other areas such as Queenstown and Marlborough, according to QV spokesperson Brendon Bodger.
Mr Bodger said the average capital value of residential properties in Invercargill was down 4.3% in comparison to Malborough and Queenstown, which is down by 11%.
“The city’s property market has performed reasonably well over the last three years, taking into account the difficult economic times facing the country.
“Although the values have held up reasonably well, the market is still operating on very low sales volumes, in comparison to the peak of the market in late 2007,” Mr Bodger said.
The Invercargill City Council has commissioned QV to undertake the three yearly revaluations for Invercargill and Bluff, with the overall capital value for the city reducing in value by 4.2%, and the land value by 6.6%.
“Value movements have varied across the city however, the hardest hit areas are the central city and south Invercargill, while the higher valued areas of the city remained relatively unchanged from the last revaluation that was at 2008,” Mr Bodger said.
Movements in the individual areas of the city are;
|Area||% CV Change||% LV Change||2011 Average CV||2011 Average LV|
Rating valuations are based on sales that have occurred in the city.
The graph below shows the QV residential house price index. This measures the movement in house prices for local council areas throughout New Zealand, providing an indicator of capital growth and how prices are trending in an area.
Mr Bodger said the graph showed the “relatively strong” performance of the Invercargill residential property market in comparison to the National average.
The commercial and industrial market has also shown a decrease with a 7% reduction in value. Rental levels in most areas remain relatively stable, however it was the increase in the investment yield that had led to the slight reductions in value, Mr Bodger said.
Rural values have shown an 11.2% reduction in value, with all sectors showing a decline in value, the highest being the pastoral sector at 13.5%. The total rural property numbers for the city however only comprise 455 properties, or 4% of the total value of the city, Mr Bodger said.
Invercargill City Council Environmental and Planning Services Director Pamela Gare said the while valuations had decreased in most areas it did not necessarily mean that ratepayers would notice a reduction in their rates when the new values are used for rating purposes from 1 July 2012.
“The Council still requires the same amount of money to deliver the necessary services to the community.
“A reduction in the rating value for most ratepayers does not alter that fact.
“In broad terms, those ratepayer’s values that have dropped above the average amount for their sector, could see some reductions in rates next year, whereas if your value has reduced at less than the average, then the rates amount could increase.
“The final rates will depend however on the Long Term Plan for 2012/13, and the associated rates polices,” Mrs Gare said.
Property owners can expect to receive their valuations in the post from October 31, and will have until December 8 if they wish to object to their rating valuation.
This year QV has included with the owners notice free access to property data on their website, www.qv.co.nz for the one month objection period.
Mr Bodger said during this period, property owners would be able to access all of the rating valuations in the city, and also be able to access 10 recent sales of properties in their locality for no charge.
Rating valuations are also available from October 28 at www.icc.govt.nz or from Council’s Civic Administration Building in Esk Street, the Invercargill Public Library and the Bluff Service Centre.
Objections to the revised valuations must be lodged, in writing or on line at www.qv.co.nz no later than 8 December 2011.
More information about “Understanding your Rating Value” can be found at www.qv.co.nz