Invercargill property owners have enjoyed a hefty rise in values over the past three years, but it could have been better, council data shows.
Updated values have been prepared for all 26,344 properties in the city by independent valuers Quotable Value (QV) on behalf of the Invercargill City Council.
They reflect the likely price a property would have sold for on July 1 this year.
Since the district’s last revaluation, in 2020, the value of residential property, which makes up the majority of property in the city, has increased by an average of 21%.
The average house value is now $475,000, while the corresponding average land value has increased by 44% to a new average of $194,000.
QV urban revaluation manager Melanie Halliday said strong home value increases continued from the 2020 revaluation through to last year, when the market cooled significantly.
Prices then reduced by about 9.9% from their peak to the effective revaluation date.
"This year has been a turning point for residential property in Invercargill, with the market flattening since early in the year.
"Now, in more recent times, we have seen green shoots in the market."
The turnaround has been caused by a low stock of houses for sale, increased demand from first-home buyers, and out-of-town buyers looking to relocate.
The average capital value of an improved lifestyle property has increased by 28% to $753,000, while the corresponding land value for a lifestyle property increased by 28% to $315,000.
Commercial property values have increased by 27.2%, influenced by commercial accommodation showing good recovery since the 2020 pandemic restricted market and increased demand for quality office and carparks rents.
Property values in the industrial sector have also increased by 26.9% since the district’s 2020 rating valuation, with commercial and industrial land values also increasing by an average of 25% and 33% respectively.
Pastoral properties make up the majority, with an average increase of 12% in capital values, compared with horticulture increase of 16% and a 5% average increase for dairy.
The total rateable value for the district is now $16.7 billion, with the land value of those properties now valued at $9.1billion.
The change would not lead to a rise by the same percentage in rates, the council said.
Those who do not agree with the change in rates had until November 30 to appeal.
