Plummeting valuations shock land owners

Some Far North land owners have been shocked to see their property values plummet in the latest three-yearly QV valuations, a reflection of the slide in property prices since the financial crisis of 2008 and the Far North's oversupply of sections.

Among the dismayed was Pawarenga farmer Avril Sanderson, whose property fell in value by $27,000, or 12.5 per cent. She couldn't console herself with the prospect of a lower rates bill when the council starts using the new value to calculate its demands from July next year.

As almost all properties have lost value, only those to shed more than the 19.5 per cent average are likely to see their rates fall.

Average capital values are down almost 12 per cent.

Ms Sanderson said she paid $1700 a year in rates, despite living in a rural area with few services.

"There's just one streetlight, no amenities, no sewerage, no water," she said. The roads were the worst they had been in 10 years and there was no council maintenance of roadside drains.

Far North District Council strategic policy manager Chris Ellington said the council played no part in the valuation process, adding that owners of rural properties not connected to sewerage or water did not pay for them, while 30 per cent of rating income was spent on roads. The council often spent more on isolated rural roads than it collected locally in rates.

In 2010, the biggest falls were in Kaitaia and on the west coast, but that was partly reversed this time, particularly in coastal communities like Cooper's Beach and Mangonui. Worst hit was residential land, values dropping by almost 40 per cent in Omapere/Opononi and 34 per cent at Doubtless Bay. In general, residential land has held its value better near the centres of towns such as Kaitaia and Kaikohe, but even there some drops have been steep.

A Kaitaia resident has seen his home's capital value plummet from $190,000 to $150,000 and his rental from $170,000 to $120,000, almost 30 per cent.

Property owners who object to the new valuations 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.