Do you live in one of the coveted nine suburbs where house values have risen above $1 million? Photo / Mark Mitchell
Wellington homeowners will be popping the champagne this week with the release of the latest ratings valuations.
Quotable Value (QV) have officially released the figures today on how much homes in the capital are worth - and the numbers show the average house price has gone up 45 per cent in the past three years.
But some outliers are experiencing growth above 60 per cent, including a small house on Oriental Parade that has risen $2.55 million in value, from $3.9m to $6.45m.
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The data shows much of the property value comes from the land, rather than the house.
QV carry out the ratings valuations once every three years to attempt to bring RVs in line with market value.
The latest update shows the average house value in Wellington is $876,912, and the average residential piece of land worth $474,074. Land value has risen 76.8 per cent.
The highest value property in Wellington is 284 Oriental Parade with a new value of $6.8m - up from $5.5m.
Nine properties went down in value - the biggest drop was $300,000 - but the property is still worth $4.2m.
The process takes into account recent sales of similar properties and establishes a market trend which is then applied to similar properties in that area. The following rating values are then audited by the Office of the Valuer General.
The new RVs put nine Wellington suburbs about $1m, compared to only two in 2015.
But while homeowners will be feeling rich, the situation is a little more grim for first home buyers, particularly given the highest increases in value are in the traditionally cheaper suburbs.
The more affordable areas, such as Newlands and Tawa, have experienced more than 50 per cent growth in value.
QV general manager David Nagel said those large increases came about partly because first-home buyers and investors were competing for the same properties.
He said there had been growth in those areas over the past three years, and prices could continue to increase until people simply couldn't afford to buy there any more.
But Nagel didn't believe Wellington was in danger of running into such dire housing issues as Auckland, because Wellington had more locations within the region that were still available for development, and less migrants settling to live in the city.
How much is your home worth? Check out the interactive to see your home's rateable value and how much it's grown in the last three years.
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