Yesterday, Quotable Value (QV) released a summary of its three-yearly revaluation of 14,153 properties in the district.
The values are calculated on behalf of the Central Otago District Council as one factor used to set rates.
Cromwell had the largest increase, rising an average of 36.9% in the past three years to an average of $495,000.Cromwell Community Board chairman Neil Gillespie said it should not come as a surprise.
"You just have to look at what the property market has been doing."
People should "sit back and wait" until they received their individual valuations to see how it would affect their rates, he said.
Certain rates were based on land value, some on capital value, and were comparative to value change in the district as a whole.
An average value for an area "wasn’t particularly useful", he said.
"For every $600,000 house, there has to be a $400,000 house."
Naseby’s values dropped most steeply at 9.4% for an average of $199,300, and Ranfurly’s fell 4.2% for an average of $169,300.
Maniototo councillor and farmer Stu Duncan said property investors were buying in Ranfurly, but past house values were inflated and the pull-back was now needed.
In Naseby’s case, the drop was due to its small permanent population, he said.
The pastoral sector increased by 33.1% in capital value and 36.6% in land value.
These rises were "ridiculous", he said.
"The price for wool is the same as it was in the 1990s. It makes it hard for young guys trying to go out and buy a farm."
The district’s dairy sector of 21 properties jumped by an average of 45% in capital value and 54.2% in land value.
QV registered valuer Dave Johnson said this increase was distorted by development on recent dairy conversions and present values were back 15% from their 2014-15 peak.The overall rateable value for the district increased 23.3% to $400,000 for a total of $9.2 billion, he said.
"The residential market in Cromwell, Clyde and Alexandra is strong, with a shortage of supply and the strongest growth in the lower end of the market."
The commercial sector "strengthened considerably" in the district’s main centres and Cromwell was now a "central hub" due to its proximity to surrounding towns such as Queenstown, Wanaka and Alexandra, making it an appealing location for both owner occupiers and investors, he said.
"The commercial sector within Alexandra has also shown steady growth with lower vacancy levels noted within Tarbert St since the 2013 rating revaluation."
Capital values for commercial and industrial properties rose 15.5% and 14.7% respectively.
Increases in the the pastoral sector were partly due to irrigation development, but values remained lower than the peak of 2014-15, Mr Johnson said.
Lifestyle blocks increased by 15% in capital value and 17% in land value. The 390 horticultural properties in the district also rose: 67% for cherry orchards and 27% for vineyards. Council rates will not be updated based on the new valuations until July 2017.
● Property owners can lodge objections at www.rating values.co.nz before January 13.
