Property revaluations 2007/08

The three yearly revaluations of property values in the Whakatane District show moderate increases in values across the property spectrum, consistent with the national trend towards easing growth in property values. The total capital value of the 16,069 properties within the District has increased by 31.4% to $7,8 billion


The property values are assessed under the Rating Valuations Act 1988 and audited by the Office of the Valuer General. The valuations will be used for rating purposes in the 2008/9 financial year.


The residential property market has been buoyant in recent years but has experienced easing growth in recent months. Within the residential sector, capital values have increased by an average of 35% and land values by 46%. The average capital value of a house is now at $323,000 (excluding chattels) with the average land value now at $187,000. While these figures are the average across the whole district, there are variations within different areas.


The higher priced properties in areas such as Ohope and Coastlands showed smaller increases than the average (16% and 22% respectively) as their existing values were already at relatively higher levels. Conversely, the smaller towns of Murupara and Taneatua experienced the greatest growth in capital value in percentage terms (174% and 75% respectively) but their existing values were at a very low starting base.


Within the lifestyle property range capital values moved by an average of 38% and land values by 46%. The greater increases in lifestyle property values occurred where there was good demand for the smaller rural residential type lots located in close proximity to town or with a view.


The rural market remains strong, with purchasers having faith in the long term outlook for farming. The dairy market in particular has been helped by the increase in forecast milk solid payouts for the next season. However, this could be tempered by other factors including the exchange rate, higher costs and global events. The effect will not be fully reflected until next season’s farm purchases are negotiated later this year. The economic returns are not as strong for pastoral, kiwifruit or forestry properties but there has been some growth in these sectors influenced mainly by competition for land and a long term investment outlook. Dairy farms rose by approximately 38% in capital value, pastoral properties 35%, horticulture by 13% and Forestry by 15%.


The largest growth within the commercial type properties has been in the industrial sector with good demand for well located industrial land. The commercial sector has been steady and is undergoing some shifts within, namely; the opening of The Hub which is drawing some larger retail outlets and an expansion of commercial activity from the CBD into the adjoining semi residential and industrial areas. The eastern end of The Strand has also changed significantly with the completion of two five storey apartment blocks and another complex under construction. Overall, commercial properties showed an average increase in capital value of 29% and industrial categories 40%.


All property owners have been sent notices of the revised valuations for their properties from 31 October. The revised Whakatane District Valuation Property Rolls are also open for public inspection at the Council’s office until 5 December.


For further information Quotable Values on 0800 787 284.