Central Otago properties have increased in value by up to 87%, according to Quotable Value (QV).
The figures were taken on October 1 last year for the Central Otago District Council to help it set property rates for the next three years. The region’s total property rateable value was $18.29billion.
QV revaluation manager Melanie Halliday said strong demand and population growth in Central Otago had underpinned property values in the district, particularly for residential and lifestyle properties.
The average value of residential property had increased by 38% since 2019. The average house value was now $806,000 and average residential land value $413,000.
The value of improved lifestyle properties value had increased, on average, by 46% to $1,370,000 and lifestyle land values by 56% to an average of $667,000.
The biggest increase was in commercial and industrial land values which had increased by 66% and 87% respectively.
Commercial property values had gone up, on average, 37%. Pastoral property had the least gain rising, on average, 29%.
"The rural sector observed slightly more subdued growth overall. Pastoral experienced a 29% increase on average, with rural values underpinned by a strong lifestyle market. The market for cherry orchards showed some volatility. After strong demand in 2019 and 2020, it has experienced a downturn, which has largely been driven by challenges obtaining finance for these properties in the current economic climate," Mrs Halliday said.
On Wednesday the new valuations were discussed at a Central Otago District Council meeting.
Mayor Tim Cadogan said the rise in quotable value would not necessarily translate to a corresponding rates increase.
"It’s not as simple as if everything goes up, that causes the rates to go up," he said.
If the value of one sector rose significantly and another very little it was likely property in the larger-rise section would go up more than the one with a smaller increase.
Growth in the district also increased the number of rateable properties, which contributed to the amount of rates collected.
The amount of money the council needed to collect stayed the same and it was how that was divided up that changed, Mr Cadogan said.
