Patea's table-topping property value gains - what's going on?

The average capital value of Patea properties has increased 75 per cent in the latest South Taranaki district valuation.

Waverley and Patea properties have recorded the highest percentage increases in capital value in South Taranaki's latest property valuation.

The district wide rating valuation by Quotable Value (QV) shows the average capital value in Patea has increased 75 per cent while in Waverley the increase is 31 per cent. The reason for the big percentage increase is that those areas started from a very low base, with the new average capital value in both towns less than $150,000.

The average sale price of a house in South Taranaki is $222,000 but the average price is higher in areas such as Hawera/Tangahoe and Opunake.

The total capital value of properties in South Taranaki has risen by 6.5 per cent in the past three years to $11.27 billion. The largest increases were in the commercial (average 18.7 per cent) and residential (17.9 per cent) sectors, while rural properties had a 3.3 per cent increase.

South Taranaki District Council manager of corporate services Phillippa Wilson said property rating values were done in a mass-appraisal process, based on market sales, and were a snapshot of the market at a single point in time.

"Because real estate fluctuates over time a rating value can't be expected to represent the market value for an extended period, which is why the district is re-valued every three years," Wilson said.

South Taranaki property owners would soon receive a notice of rating valuation with an updated rating value for their property. Rating values are one component used to determine the share of rates paid by a property owner.

"Put simply, your rates will only be affected if your property value has increased or decreased by more or less than the average movement across the district," Wilson said.

The new rating values will not be used for rating purposes until the new financial year begins in July 2019.

Property owners could object if they thought their rating value was not accurate. Objections can made online at www.ratingvalues.co.nz or call Quotable Value on 0800 787 284. An objection form is available on the council's website www.southtaranaki.com

The last day for objections in South Taranaki is November 22.