New QV ratings on the way for Ruapehu property owners

The average house value in the Ruapehu district is now $361,000.

The average value of Ruapehu properties has increased by 28 per cent in the past three years while land values have increased by 51 per cent, according to new rating valuations for the district.

Property owners will soon receive a valuation notice in the post with an updated rating value for their property, assessed by Quotable Value (QV) on behalf of Ruapehu District Council.

According to the latest figures, the average house value is now $361,000, while the corresponding average land value has increased to $132,000.

Simon Willocks, QV manager for Manawatū and Taranaki, said it had been a “rollercoaster” during the past three years for the property market, with record-low interest rates helping to drive significant value growth in 2021, before experiencing a long period of decline throughout 2022 and 2023.

“We’ve witnessed a strong increase in residential property value levels overall since our last revaluation in Ruapehu in 2020. Though property values have softened over the past 18 months or so, they’re not yet back to their pre-pandemic levels and appear to be levelling out now.”

The average capital value of an improved lifestyle property had increased by 22 per cent to $577,000, while the corresponding land value for a lifestyle property increased by 27 per cent to $235,000.

Willocks said the Ruapehu lifestyle market had seen strong growth since 2020, as the prices were relatively low compared to national standards.

Bayleys Ruapehu office manager Michaela Palacio said the growth in lifestyle property sales had tapered off and she had noted a recent increase in residential sales to local buyers.

“There were seven house sales by our agents in October. The buyers were almost all from this region and they have been able to get into the market because the competition had died down.”

Ruapehu commercial properties showed more modest increases, with an average of 1.8 per cent.

Property values in the industrial sector have increased by 24 per cent since 2020 and commercial and industrial land values have increased by 20 per cent and 42 per cent respectively.

Pastoral farms dominated the local rural sector, with a 28 per cent average increase in capital values and an average land value increase of 30 per cent.

The total rateable value for the district is now $8 billion, with the land value of those properties now valued at $4.6 billion.

Ruapehu Mayor Weston Kirton said the valuation increases didn’t necessarily equate to rates increases.

“Not all rates are determined by capital value. As a council, we look at the costs related to the area of the property, such as roading and water supply.”

The average valuation increase could be deceptive because of improvements to lifestyle properties pushing up valuations at the top end of the scale, he said.

“We take those things into consideration when we assess the report.”

Rating valuations are completed every three years to help councils assess rates for the following three-year period. They are not intended to be used for any other purpose, including raising finance with banks or as insurance valuations.

The latest figures reflect the likely selling price of a property at the revaluation date, which is July 1, 2023.

If owners do not agree with their rating valuation, they have a right to object before January 19, 2024.