Depressed market reflected in decreased district valuation

The latest valuation of the Hurunui District has seen a more than a three hundred million dollar decline in property and land values over the last three years.

The capital value of the district now sits at just under five billion ($4,713,354,000) down from $5,043,768,000 and land value is $3,040,106,000 where three years ago it was $3,298,782,000.

Overall, that is a 6.5% decrease in the capital value of the district, or in dollar terms around $330 million and an 8% decrease in land value or just over a quarter of a billion dollars.

Hurunui District Council Finance Manager, Jason Beck, says the results are not surprising given the revaluation occurred during a depressed market.

“The last revaluation was in September 2007 when the property market was buoyant. Since then, the market has softened and that has been reflected in the new figures.”

He says other councils whose three yearly revaluation cycle has fallen at the same time have also experienced a similar trend.

Homeowners will be receiving formal notification of their new valuations mid November, which Jason Beck says will show a drop in value of as little as one thousand dollars to as much as 29 thousand dollars, on average, depending on where a property is located.

In Hanmer Springs, the average value of a home is now $370,000. In 2007 it was $399,000.

In Amberley, the average house value is now $288,000. In 2007 it was $306,000.

In Cheviot, values have remained largely the same with the average house value at $197,000 today, down just one thousand dollars on the previous valuation three years ago.

Capital and land value of rural properties have reduced on average by 7.3% and 7.7% respectively with land value for vineyards down on average 16%, though land used for dairying has bucked the trend with an average INCREASE in value of 26%.

The revaluation will have no effect on this years’ rates, which are already set.

The new valuations will, however, be used to determine the level set for the 2011/2012 year but Jason Beck says ratepayers should not expect a drop in property value will equate to a drop in their rates bill.

“The Council still needs to bring in the same total amount of rates revenue regardless and it will be apportioned differently according to the new values.”

This was the case in 2007 when ratepayers who experienced a doubling in valuation did not automatically receive a 100% increase in their rates.

Ratepayers are able to object to their new valuations if they believe they do not reflect the true market value of their property. You will find details on how to do this on your valuation notice. But you must do so by 23 December 2010.

For further information contact:

Jason Beck

Manager, Financial Services

Hurunui District Council

03 314 8816