Gisborne district properties have lost value

Most Gisborne district properties have reduced in value since the last valuation in mid 2008. This is in line with properties throughout New Zealand. Gisborne district properties were last valued when the market was peaking and just before the start of the global financial crisis.

Gisborne District Council contracted Landmass Technology Limited to reassess the valuations for Gisborne district properties. These revaluations are now being audited. Property owners will be advised of the new value of their property by mail. Notices will be posted on 16 December.

The biggest reductions are in coastal residential properties, says Landmass director Garth Laing.  “Wainui, Makorori and beachfront properties have reduced on average by 20%. In 2008 a high premium was being paid for a beach view. That is not so much the case now.”

“The value of hill country farms dropped dramatically soon after the 2008 revaluations by close to 20%. They have stayed at those lower levels due to economic uncertainty and bank’s tighter lending criteria. Better returns for farmers have not flowed through to property values. Farmers seem to be focusing on paying off, rather than taking on, debt.”

“The district’s 385 cropping properties, mostly on the Poverty Bay or Tolaga Bay flats have reduced on average by 12%. The fall has been more dramatic for the 400 horticulture blocks. Land values have fallen on average by 17% and capital values, which include the value of the crops such as grapes, citrus and kiwifruit, have fallen on average by 25%.”

“Forestry land is bucking the trend and has increased in value by around 25%. It is the only class of land in the district where value has increased. This is mainly being driven by increasing returns for logs and the number of people interested in planting trees for carbon trading.  There has been a noticeable trend for conversions from pastoral land to forestry in the last 2 years.”

“Rural townships are ticking along with prices quite stable. In Gisborne city however residential and commercial land values have fallen on average by 14%. The number of properties selling is low and I am surprised values didn’t fall further after the 2008 crash.”

The revaluations may have some affect on a property owner’s rate bill from July next year. Just what that will be is not yet known.

A decrease in the value of your property does not necessarily mean an equivalent movement in rates, says Council’s corporate services manager Mike Drummond. “By February next year Council is likely to know what affect the revaluations will have on rates. People will be able see this for themselves by using the rates calculator on Council’s website. The proposed 2012/2013 rates will be available to compare from March. Rating levels will be consulted on as part of Councils’ Ten Year Plan.”

If you are the owner of the property and you don't agree with your revaluation you can make an objection using the Rating Valuation Objection form available from customer services or Council’s website.  It must be received by Council before 31 January 2012.