First rung on property ladder getting higher

New valuation figures indicating the average house price is valued at more than $500,000 in Central Otago could offer further challenges for residents trying to get on the property ladder.

Central Otago Mayor Tim Cadogan said this was a possible view for residents as the Central Otago District Council announced latest Quotable Value (QV) figures this week.

A council statement has said new rating valuations by QV had been prepared for more than 14,000 properties, on behalf of the council.

QV registered valuer Tim Gibson said residential housing was showing an average capital value increase of 36.6% since the previous revaluation in 2016 and the average house value was $531,000.

He added the corresponding average land value had increased by 72.7% to an average of $266,000.

"Value level changes vary on location and house type."

Rating valuations are carried out on all properties in New Zealand — usually every three years — to assist local councils in setting rates for the following three-year period.

Mr Cadogan said increases were dependent on whether residents owned a home or not.

"For a homeowner, their equity in their property has obviously increased but for someone trying to get on the property ladder, that first rung just got a lot higher.’’

Council corporate services executive manager Leanne Macdonald said it was a common myth that capital value increases meant rates increased by the same percentage.

Mr Gibson confirmed commercial property was showing an overall increase of 23.3%, while the industrial sector had increased 40.5% compared with the 2016 capital value levels.

“Land values have increased overall with 58.7% for commercial and 67.7% for industrial compared to 2016 land values.’’

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.

Residents had up to January 17, 2020 to object to their rating value.

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