The latest Quotable Value (QV) figures released last week show an average increase of 49% for properties in the Clutha district.
These new rating valuations for 12,111 properties showed the total rateable value for the district was now $8.8 billion, with the land value of those properties now valued at $5.6 billion.
This means the value of a residential house on average, has increased by 49.4% since 2017, with the average house value now sitting at $313,000, while the corresponding average land value has increased by 77.8% to an average of $97,000.
For those wanting to sell it is good news as their equity has improved, but for those wanting to buy it is not so good.
But Ray White Balclutha licensee agent Stuart McElrea said the public have to remember that this latest valuation increase is merely realigning the previous figures with the current market trends.
“If you looked at a house to buy and went online to see what its current valuation was, then last week what you were seeing was a figure from before 2017. Now you will see the latest valuation as it brings it all into line with what’s happening today.”
Clutha District Council (CDC) communications co›ordinator Sue Wilkins advised that the values of all properties were reviewed every three years, with previous values dating from November 2017. CDC Mayor Bryan Cadogan said there had been an unprecedented rise in recent times, especially in some urban communities.
“While the revaluation process is outside Council control, the changes will have an influence on rates
— but only the margin your property has altered compared with others,” Mr Cadogan said.
Compared to many larger cities where the rates are assessed totally by the value of an owner’s property and house, Clutha district rates are different.
The council splits the district into 11 different areas for rating purposes: Balclutha, Clinton, Kaitangata, Kaka Point, Lawrence, Milton, Owaka, Stirling, Tapanui, Waihola and Rural.
Staff were calculating what the changes will mean for individual properties, Mr Cadogan said, and “we will have more in›depth analysis by next week’’.
“From a rating perspective for every property that increases above the average, there will be a corresponding reduction elsewhere. That said with such an unprecedented ‘wide spreading’ of adjustments, there will be significant changes for some.
“The reality is that with national trends running in tandem with a local economy that is showing amazing resilience and strength, residential price increases look set to continue.
“I sympathise with the plight of people trying to enter the property market, but it wasn’t that many years ago that our market was so depressed that people were deterred from shifting here for fear of financial stagnation — it’s a double edged sword.”
QV area manager Tim Gibson said the demand for residential housing was buoyant across the region, with all townships in the district seeing significant increases in values.
“The townships close to Dunedin city in particular have seen the highest growth, with Waihola and Milton being sought after by people that are seeking a more affordable location. Another is the demand for coastal locations within the Catlins. Lower value properties have seen the most competition from buyers and have seen the greatest value increases.
“Lifestyle properties typically align in value with high›end residential properties and this segment of the market has seen a more modest increase in values than the residential market overall,” Mr Gibson said.