Valuation increases significant

The latest rateable revaluations of residential properties in Invercargill have jumped 48% on average and the rise in value could spell an increase in rates paid to council.

Information released by the Invercargill City Council yesterday showed the biggest upturn in house and land values was in South Invercargill.

Appleby-Georgetown had an average 67% increase in dwelling value (DV) and 143.2% rise in land value (LV), South City had a DV increase of 61.6% and LV rise of 181.2% and Appleby-Kew had a 53.2% DV and 180.2% LV increase.

North Invercargill increases, while still significant, were far less than those in the south.

Gladstone-Avenal had on average a 36.7% DV and 29.7% LV jump and Windsor posted 39% DV and 39.4% LV increases.

ICC finance and assurance group manager Michael Day said while the rating valuation increase was good news, it would have an impact on distribution of rates throughout the city.

"Rates which are based on properties’ rateable valuations are calculated on the valuation for each individual property throughout the city.

"Different increases across the city will change the distribution of rates accordingly."

Property owners would receive their new rating valuations in the post after November 25 and new council rates would be effective from July 1 next year.

Jubilee Budget advisory manager Sharon Soper said the increase in property owners’ rates would put more pressure on some who were already vulnerable.

"It’s going to be huge."

"Since Covid and lockdown, more and more people are struggling, trying to make ends meet."

A combination of redundancies and cutting back of hours, had resulted in an upturn in people looking for budgetary advice, she said.

People should be aware provisions could be made if they were struggling to pay rates — they could either go through a budget advisory organisation or directly to the council, she said.

Professionals real estate agent Tim Frampton said the valuations would bring values in line with the market.

"They’ve just been so low," he said.

A shortage of listings, an increased demand for property among people moving to the area, as well as first-time buyer demand and low interest rates, meant it was likely prices would continue to increase, he said.

There was also a shortage of sections available at a time when building a new home was comparative to buying a dwelling.

Property owners had until January 22 to object to the ICC if they did not believe their rating value was accurate.

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