Nelson homes have increased in value by 8.7 per cent, according to the latest rateable valuations which have just been released by Nelson City Council.
The revaluations are undertaken by Quotable Value every three years, on behalf of the Council.
Gail Smits from Quotable Value, delivered the findings to councillors at yesterday’s full council meeting, saying the figures show “very much a good news story.”
The lower end of the residential market has seen the biggest lift, which Gail says is very much driven by first home buyers, investors and interest rates.
“Nelson is doing pretty well residentially,” says Gail. “The lower end of the market has come up.”
Wakatu and Annesbrook have had the biggest increase in capital value, with 12.5 per cent growth, followed by Nelson South and Bishopdale with 11 per cent growth. Washington Valley and Abraham Heights have also shown good growth.
Nelson North, The Glen and Cable Bay have had the least movement, with a 3.8 per cent increase in capital value. Other suburbs with lesser increases include the Port Hills, Central Nelson and The Wood.
Mayor Rachel Reese says the new valuations show a positive trend, with more house sales year on year and a steady rise in house sale prices through 2015.
“Nelson residential properties have increased in value by an average of 8.7 per cent, which shows how strong our housing market is. I’m not surprised more people want to live here and are purchasing property,” she says.
“At the same time, while the new valuations are in line with national trends, which have all shown increases over the past three years, Nelson property is still much more affordable with house prices below the national average.”
Gail says that while there has been a lift in residential property values, the business sector has not shown a lot of movement. There has been little change to 2012 land value levels for business zoned land and a slight increase in central retail rentals.
New rateable land values will be used for rating purposes from 1 July 2016, and council’s corporate services group manager Nikki Harrison, says they have yet to make any decisions on the levels of rates for 2016/17.
“The revaluation does not generate any additional revenue for the council. Rather, the updated valuations mean rates will be spread between ratepayers in different proportions than before,” she says.
“For example, if your land value has increased by more than the average for the city, you can expect your rates to increase by more than the average. If your land value has decreased, this will usually mean your rates increase will be lower than the average, and in some instances rates may decrease.”
The revised rating values are effective as at 1 September 2015 and the new notices of valuation have been posted to owners and ratepayers.
Objections to the revised valuations must be lodged, in writing, or online at www.qv.co.nz, no later than 15 January 2016. Objection forms are available the from Nelson City Council or Quotable Value Limited.
The district valuation rolls will be open for public inspection, free of charge, during regular office hours at the Nelson City Council office, or at their website, www.nelson.govt.nz.