Latest valuations show Ruapehū district housing and land in hot demand

Raetihi property valuations have increased an average 80 per cent. Photo / Bevan Conley

Properties in the Ruapehū district are in high demand, contributing to valuation increases of as much as 80 per cent.

Ruapehū district property owners will receive their 2020 notice of rating valuation, with an updated rating value for their property, after October 7.

Rating valuations are usually carried out on all New Zealand properties every three years to help local councils set rates for the following three-year period. They reflect the likely selling price of a property at the effective revaluation date, which was August 15, 2020, and do not including chattels.

QV valuer Simon Willocks said demand for residential housing was up across all townships in the district, most with increases of between 50 and 60 per cent. Raetihi had the largest increase on average at more than 80 per cent.

"There is a high demand, unprecedented low interest rates and limited stock - all factors driving demand in the housing market, along with values previously being at a low base relative to much of New Zealand."

Commercial property values have increased by 20.8 per cent and property values in the industrial sector have increased by 35 per cent since the district's last rating valuation in 2017. Commercial and industrial land values have also increased by 56 per cent and 77 per cent respectively.

"This shows a solid performance for commercial and industrial properties off some very low start values," Willocks said.

"Because Mt Ruapehū caters predominantly for domestic tourists, the Ruapehū district isn't dependent on international tourists, which also lessens the impact of Covid-19.

"In Taumarunui and Ohakune, after a prolonged flat market for lifestyle rural properties, we have now experienced considerable growth. The lifestyle market strength aligns with the high-end residential increases."

Willocks said the rural market remained strong with sustained farm gate prices and a shortage of listings. There are limited mānuka transactions for mānuka honey, and market gardening continues to dominate the higher-valued land.

Any changes in the market since August 15 will not be included in the new rating valuations.

New rating values will be posted to property owners after October 7. If owners do not agree with their rating valuation, they can object through the objection process before November 30, 2020.