Nelson rating revaluation shows significant growth in property values

A presentation detailing Nelson’s three-yearly revaluation review by Nelson City Council’s external valuation service provider, Quotable Value (QV), was heard by elected members at a Council meeting yesterday.

The review from QV shows that, over the last three years, there has been a 40 per cent lift in capital value in the Nelson residential market and a 72 per cent increase in residential land values, taking the average house worth to $875,000 and average residential land value to $508,000.

Nelson City Council rates are assessed on land value only.

The QV presentation provided unaudited figures, and property owners can expect to receive a revised Notice of Rating Valuation with an updated rating value for their property in late January or early February 2022, after the audit is completed.

The updated rating valuations are independently audited by the Office of the Valuer General and need to meet rigorous quality standards before the new rating valuations are certified. Any questions relating to specific property valuations won’t be able to be answered until owners’ notices go out.

The Nelson residential property market is presently a “sellers’ market”, with minimal stock/listings for sale and good demand from well-financed out-of-town buyers.

QV says that the major change drivers in the residential market are similar to what is happening in other centres:

• Low interest rates means more buyers are actively looking to purchase.
• A low level of available housing stock means buyers are having to compete against one another, pushing values up.
• Increased demand from buyers from outside of the district.
• Phased removal of interest deductibility from October 2021 for residential investment property.

The QV presentation shows a strong regional economy with industries such as horticulture, fishing, forestry, tourism and building performing well.

Retail, office and industrial properties have seen lower increases in value than the residential property market, but business properties have seen significant gains.

Group Manager Corporate Services, Nikki Harrison, says that the revaluation does not generate any additional rates revenue for Council.

“Rather, the revaluation means rates will be spread between ratepayers in different proportions than before. It is important that property owners remember that a change in the rateable land value of a property does not mean rates will change by a similar percentage.”

New rating values will be posted to Nelson property owners in late January or early February 2022. If owners disagree with their rating value they have the right to object. The objection cut-off date is 10 March 2022. Objections can be lodged online at ratingvalues.co.nz and QV advises people to call 0800 787 284 in the first instance to discuss the valuations.