An increase in property values does not necessarily mean a rise in rates, Waitaki Mayor Gary Kircher says.

New property valuations for the Waitaki district will start showing up in the post next week.

Independent valuers Quotable Value (QV) carry out valuations of land and capital improvement every three years, on the 14,552 properties in the Waitaki District.

The average value of a residential property in the district is $460,000, an increase of 24%, while land values have on average increased by 58% to $197,000.

The average capital value of an improved lifestyle property has increased by a third to $700,000, while the corresponding land value has increased by 35% to $340,000.

Commercial property has seen a 16% rise, and industrial properties 26%, with the land they sit on rising in value by a whopping 84% and 74% respectively, in that time.

The new values are used to help the Waitaki District Council assess its rates for the next three years, Waitaki Mayor Gary Kircher said.

“Valuations help council determine how part of the rates take is shared across the district. A number of key activities are rated on property values, with the majority of other activities funded by set amounts per property," he said.

“It’s important to recognise that the overall rate take does not increase as a result of the new valuations, though individual properties can see increases or decreases depending on the relatable change overall.”

Since the district’s last revaluation, QV senior consultant Baylan Connelly said Waitaki had experienced a strong property market in 2021, with record low-interest rates helping to drive growth. 

It began to slow and then decline towards the end of 2022 but has started strengthening once more.

“Overall, the market has seen moderate growth in the three years since our last revaluation in Waitaki in 2020. 

“Though property values have softened over the past 12 months or so – particularly the first home buyers’ market – modern new-build housing has seen some strong increases, reflecting the cost to build and more demand for good quality accommodation,” he said.

“Properties at the more affordable end of the ladder have seen smaller average home value increases, which is due to higher interest rates, maintenance costs, and rising inflation making it difficult for prospective purchasers to obtain finance. 

“On the other hand, more expensive properties further up the property ladder have been less affected by the rising cost of living, as people who are looking to retire or relocate to the region are also less impacted by ongoing economic conditions.”

Valuations are audited by the Office of the Valuer General before they are confirmed and sent to property owners.

People are able to appeal the new valuation of their property with QV between the time of notification, and Thursday, March 14. Details of this process will be available in the notification letter.