Far North property values plummet

Northland property prices have plummeted.

Property values have plummeted across the Far North in QV's latest revaluation.

Land values have dropped by an average of just under 20 per cent since the last revaluation in 2010 with the greatest falls in South Hokianga and Doubtless Bay. In Opononi and Omapere the average residential land value has plunged by almost 40 per cent; places like Coopers Beach have also been hard hit due to an oversupply of sections.

The drop in capital values - the value of land plus buildings - has been less dramatic, averaging just under 12 per cent.

The values are calculated every three years by valuation company QV and are based on sales data and other information. They are used by the Far North District Council to set rates, a good chunk of which are based on land value.

However, Far North residents who expect a drop in value of their land will automatically lead to a drop in rates may be disappointed. Because land values have dropped almost everywhere and the council still needs to collect the same total amount of rates, only ratepayers whose land values have dropped more than the 19.5 per cent average are likely to see their rates drop. Ratepayers whose land values have dropped by less than the average may see their rates go up because they will have to pick up a bigger share of the total rates take.

QV valuer Jan O'Donoghue told last week's council meeting that residential land in the wider Kerikeri area and close to town centres such as Kaitaia and Kaikohe had held its value better than coastal properties.

The big drop in value of vacant land had been driven by an ''extreme oversupply'' of residential and lifestyle sections in places such as Coopers Beach. However, the market had steadied since 2012 and values were starting to head up again.

The demand for quality farmland, especially dairy, remained strong and pre-1990 forests showed steady value, although the low price of carbon had halted the planting of new forests.

Valuation notices started going out in the mail on September 30. Property owners have until November 8 to object.

Total property value in the Far North hit a peak in QV's 2007 revaluation, falling in 2010 and again this year. The new values will be used for rating purposes from July 2014. Whangarei is due for a revaluation in 2015.

THE NEW VALUES IN BRIEF:

* Land values have dropped on average 19.5% across the Far North.

* Capital values (land plus buildings) have dropped on average 11.6%.

* The biggest drops in value for residential land are in Opononi/Omapere (39.8%), Rawene (39.4%) and east coast bays such as Coopers Beach (34.1%).

* The smallest drops in residential land values are in some rural areas, Russell (8.7%) and traditional urban centres such as Kaikohe (11.5%), Kawakawa (14.9%) and Kaitaia (15%). Kerikeri is down 18.2%, Paihia 24.3%.

* The only place in the Far North where land value has gone up is Moerewa (+41%), albeit from a very low base.

* By land type, the biggest drop in value is for residential land (down 22.4%), followed by lifestyle (20.1%) and commercial (19.9%). The smallest drops are for dairy (13.1%) and forestry (13.7%). The falls in capital value are less pronounced (residential down 13.6%, commercial 2%).

* Your share of the Far North's total rates bill will go down only if your land value has dropped by more than the average. If your land value has fallen, but by less than the average for the whole district, your rates may go up.

* If you disagree with your valuation you have until November 8 to appeal to QV. Instructions are on the back of the valuation notice. Anyone who objects will have their property inspected in person. There's no point complaining to the council because they don't set the values.