General increase in new property valuations

QV says the Clutha district had had moderate increases over the past three years. Photo: ODT files
QV says the Clutha district had had moderate increases over the past three years. Photo: ODT files

Clutha district house values have steadily increased during the past three years.

New rating valuations have been prepared for 11,975 properties on behalf of the Clutha District Council by Quotable Value (QV) and will be sent to owners this month.

The rating revaluation figures compiled by QV show the total rateable value of the 11,975 properties within the Clutha district is now $8.18 billion, and the land value of those properties is now $5.5 billion.

QV senior consultant Tim Gibson said the district had had moderate increases over the past three years.

The majority of the growth was in 2016 and had continued this year.

Ongoing low interest rates and overall confidence within the residential sector had driven value growth after a long period of static movement since the global financial crisis of 2007, he said.

Commercial and industrial properties had also gone up in value. The average capital value for developed commercial property had increased 9.6% since the last rating revaluation in 2014, and the average capital value for developed industrial property had increased by 5.6% over the past three years.

Rural and lifestyle property values had increased since 2014 on average by 11.4%, to $305,000.

Mr Gibson said commercial and industrial value levels within Balclutha had lifted moderately, along with Tapanui and Waihola.

The other small provincial centres had limited growth. Most had retained 2014 value levels, driven mainly by a lack of demand for commercial and industrial investment properties in the smaller centres, due to perceived high risk in retaining tenants and obtaining any rental increases.

Within the rural sector, the market was showing a slight lift in values from the 2014 levels, supported by good beef and lamb prices and continued low interest rates. A lot of the sales had been made for farm enlargement.

Overall, the dairy sector was showing little change over the 2014 levels and continued uncertainty concerning the dairy payout level was a contributor.

New rating values would be posted to property owners tomorrow. Council rates are not updated based on the new 2017 rating valuations until July 1 next year.

The updated rating valuations should reflect the likely selling price of a property at the effective revaluation date, which was September 1, 2017.


 

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