Rating Valuation Changes For Napier

Quotable Value’s recent revaluation of Napier’s 25,000 properties has seen land values for most residential properties reduce by around five percent.

There are, however, pockets of the city where value movements are more significant.

The total capital value of Napier properties has reduced by 3.4 percent and the corresponding land value by 4.8 percent.

This triennial revaluation doesn’t affect Napier City Council’s total rating income. When the total land valuation of the city changes every three years, the rates levied per dollar of land value are altered accordingly, taking into account the change in land value.

What the 2011 revaluation will do is trigger a redistribution of rates paid city-wide.

Residential properties where land values have decreased by more than five percent could see rates reductions. Rates will increase for properties with land value movements below five percent or where land values have gone up.

However, a change in a property’s valuation doesn’t mean a proportional change in the level of rates, as other factors, such as proposed changes to the rating system for 2012/13, need to be taken into account.

Of the 2011 revaluation, Quotable Value says the residential property market has been quiet for some time and values have fluctuated within a narrow band for most of the year.

The new average value for a residential dwelling in Napier is now $337,000 – 3.3 percent less than in 2008. The average section value is $161,000, a decrease of 4.8 percent.

Land values for most Napier Hill properties have decreased by 10 percent, and for some apartments they have decreased significantly more than average.

Areas of greatest increase are Greenmeadows West, Parklands and parts of Taradale. For some residential properties in Greenmeadows West, the increase has been around 15 percent.

The decrease in value for commercial property is around five percent while industrial property has increased by about one percent. There were some areas, including parts of Pandora, where values markedly increased.

The revised values will apply to the rating system from 1 July 2012.