Kaipara rates may rise as property values increase by a third

The new Kaipara district rates from July 1 this year will be based on an increase in valuation of properties by a third. Photo / Michael Cunningham

The majority of Kaipara homeowners may get a rates rise this year as the value of the district has shot up by a third.

All 14,819 properties in Kaipara have been revalued by Quotable Value (QV) as part of its three-yearly revaluation process, and the capital values of the district's properties are now worth a combined $8.6 billion.

Land value of properties is $5b — a 33.3 per cent increase from the previous valuation in 2014.

The new rating valuations were prepared by QV on behalf of the Kaipara District Council.

Property owners received a 2017 Notice of Rating Valuation with the updated rating value of their properties.

Rating valuations are carried out on all properties in New Zealand, usually once every three years to specifically help local councils set rates for the following three-year period.

Rating values are just one of a number of factors councils use to allocate rates. The new valuations will be used to assess rates for the year starting July 1, 2018.

The updated rating valuations should reflect the likely selling price of a property.

QV senior consultant Thomas Ujdur said the overall increase for residential properties from the 2014 valuation was 47 per cent on capital value and 59 per cent for land.

The average value for developed commercial property increased by 35 per cent while developed industrial property went up by 17 per cent, he said.

"In many cases a sale price achieved in the market today may be different to the new rating valuation set as at 1 September, 2017. Rating valuations are not designed to be used as market valuations for raising finance with banks or as insurance valuations," Mr Ujdur said.

He said the central Kaipara region had been the standout performer as the market recognised the relative undervalued nature of smaller towns such as Kaiwaka, Maungaturoto, and Paparoa.

A KDC spokesman said an increase in land value did not automatically lead to a hike in rates payable but it was early to comment on any increase or decrease in rates for this year.