Property Revaluation 2023/2024
We've updated all
property valuations
across the District
We must keep capital and land values of all properties in the District updated so that rates can be accurately and fairly calculated. Every council in New Zealand is required to carry out a revaluation at least every three years. Valuations are not designed to reflect the sale price of any given property and should not be substituted for an independent market valuation for the purpose of sale.
The new values will form the basis of our rates calculation for the 2023/24 year, starting on Friday 1 September 2023. Your rates pay for a large proportion of services and activities provided by us. Some examples include; animal control, recycling centres, safe drinking water, playgrounds and maintaining 1079km of local roads and over 200km of footpaths.
The Main Changes
| Residential |
All sectors of the residential market have experienced strong growth since the previous revaluation in 2019, however value growth has been subdued since reaching the peak in early 2022 with rising interest rates and stricter lending protocols dampening demand.
| Lifestyle |
The general market for over the last three years the diverse Western Bay of Plenty lifestyle sector has continued to grow across the District in line with both residential and rural movement. Most localities are seen as an attractive place to live with many blocks also having small orchards mainly Kiwifruit and/or Avocados. There is still a diverse range of properties from quality beachfront small holdings to remote larger blocks of pasture and bush, views obtained being a major part of land value.
| Kiwifruit and other horticulture |
Since the last revaluation in 2019 the kiwifruit industry has experienced good positive growth. Demand for kiwifruit orchards and bare land suited for development had been heavy and resulted in land prices reaching a record high in late 2021 early 2022. However, since then in the six months leading into this revaluation we have seen a correction in values.
| Dairy Farm and Pastoral |
Both dairy and pastoral categories have seen good increases in value mainly driven by a strong lifestyle sector and the search for land suitable for horticulture. Since the last revaluation we have seen large portions of productive land converted into horticulture with small to medium pastoral blocks with easier contour in good demand for lifestyle blocks.
A visual representation of the movements.
Who does the revaluation?
Valuations are completed by an independent valuation company Quotable Value (QV) on behalf of us. The valuation process is audited by the Valuer-General. The role of the Valuer-General’s off ice is to provide fair and transparent land values and to offer specialist valuations and property advice to Government.
What’s the impact of the revaluation on my rates?
Revaluations do not necessarily mean an increase in rates. For example, a 29 percent property valuation increase doesn’t mean a 29 percent rates increase. Usually, only properties with valuation increases above the average increase for all rateable properties will pay higher rates.
Why is there a difference in how rural and residential property valuations affect rates?
The main difference is due to fixed charges such as water, wastewater and roading. Rural properties have fewer fixed charges than their urban counterparts. This means that property values make up a greater proportion of the rates calculation for rural people than urban residents. For example, a typical rural property’s rateable value may make up 80 percent of this calculation, while an urban property’s could be just 25 percent, with the rest made up of fixed charges.
What does the valuation figure impact on?
The valuation is calculated on the land and capital value of each property. These valuations drive the general rate based on capital value and the roading rate based on land value. This is totally separate from the remaining rates charged by Council that are fixed charges such as sewerage and water
What makes up the valuation of a property?
Land value
The value of the vacant land with no improvements.
Capital value
The total value of the property (including land, buildings and other improvements). It is the estimated sale price of a property at the date of valuation and does not include movable items such as household chattels, business goodwill, or other income derived from your property.
Value of improvements
This is the difference between the land and capital values of the property and reflects movement in capital value as a result of improvements. For example improvements can include the construction of buildings or the establishment of orchards/vines, and any landscaping, forestry etc.
Capital value - land value = value of improvements
Does growing gold kiwifruit on a property add to the capital value of the property?
As directed by the Valuer General, where the amount a purchaser would pay for a property was higher due to the presence of a licence or consent, such as the SunGold licence, that additional value is to be included in a capital valuation.
Disagree with your valuation?
If you disagree with your property’s latest valuation you can lodge an objection no later than Thursday 3 August 2023.
The easiest way to object is online at the QV website here.
You can also:
- Pick up an objection form from your nearest QV office or one of our Library and Service Centres.
- Phone QV on 0800 787 284 to talk with someone and have a form sent to you.
