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QUEENSTOWN LAKES VALUATIONS INCREASE

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October, 2017

Properties have seen significant rating value increases since 2014
according to the recently completed Rating Revaluation for 2017. The
new rating valuations have been prepared for 25,059 properties on
behalf of Queenstown Lakes District Council by Quotable Value (QV).

Rating valuations are carried out on all properties in New Zealand,
usually once every three years to help councils set rates for the
following three-year period. These are one of a number of factors used
to allocate rates and reflect the likely selling price (excluding chattels)
of a property at the effective revaluation date. Rating valuations are
not designed to be used as market valuations for raising finance with
banks or as insurance valuations.

An increase in a propertys capital value does not automatically lead to
an increase in rates payable. If a propertys valuation increase is higher
than the average for the district, then the capital value portion of rates
on the property will be proportionally higher in the next rating year.
The reverse also applies where properties could see a decrease in the
capital value portion of rates if the propertys valuation increase is
lower than the district average. The capital value portion of rates
equates to around 50% of the annual rates assessment.

In 2017 the revaluation date was 1 July, and new council rates based on
these rating valuations will take effect from 1 July 2018. Any changes in
the property market since 1 July 2017 wont be included in the new
rating valuations. Updated rating valuations are independently audited
by the Office of the Valuer General.

The rating revaluation figures compiled by QV show the rateable value
of the 25,059 properties within the district is now $32,120,192,000,
with the land value of those properties now at $19,012,419,000. The
growth in tourism remains the largest economic driver for the district.
High demand for residential property has fuelled price increases while
rental housing shortages are keeping rents high. The biggest percentage
increase has been for housing at the lower or entry level to the
residential market.

Outlying towns such as Glenorchy, Kingston, Albert Town and Lake
Hawea are all benefitting from residential shortages in both
Queenstown and Wanaka. There is also steady demand across the
district for lifestyle properties. The average capital value for an
improved rural and lifestyle property has increased by 42.6% to
$2,532,000 since 2014. The corresponding average land value for a
lifestyle property has increased by 58.8% to $1,265,000.

Commercial and industrial properties have also seen value increases,
with the average capital value for developed commercial property
increasing by 53.7% and developed industrial property by 53.3% in the
last three years.

New rating values are currently being posted to all property owners in
Queenstown Lakes District. If owners do not agree with the rating value
they have the right to object until 10 November 2017.

 

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