The valuation process took into account recent sales of similar properties at the time of revaluation
Seaside suburbs and areas outside New Plymouth have benefitted the most from the latest round of capital valuations for the district, according to Quotable Value (QV).
The company revealed that properties in the seaside suburb of Oakura and those in Fitzroy/Strandon benefited the most from the latest valuations – with the value of residential homes jumping by $160,000 for Oakura and $107,000 for Fitzroy/Strandon. Meanwhile, average section prices across the district are $252,029.
Paul McCorry, senior consultant at QV, said the valuation process noted the recent sales of similar properties at the time of revaluation and established market thread, adding that the valuations were “effectively trying to get a snapshot of the market” and used by to-be home owners as an indicator of value when looking to purchase.
“It's the only thing that's out there, it's the only guide. But we follow the market, rather than set the market,” he told Stuff.co.nz.
Read more: New Plymouth’s property market is growing
QV prepared the property valuations on behalf of the New Plymouth District Council (NPDC) as it worked on setting rates for the 2020/21 financial year.
Joy Buckingham, chief financial officer at NPDC, noted rate rises were not directly relative to land value increases.
“A 25 per cent rise in land value does not mean a 25 per cent rates increase. Your share of the rates depends on how much your land value rises compared with the average,” Buckingham said.
Garry Malcom, Real Estate Institute of New Zealand (REINZ) ambassador for Taranaki, added that the new figures will not directly affect the New Plymouth property market.
“They're two different things. The new rateable value has brought the rateable value more in line with market value,” Malcom said.
