Home and land owners across Southland District will soon receive a new rating value for their property.

Southland District Council (SDC) say the average house has increased in value by 46% since the last valuation in 2018, with corresponding average land value increasing by 67%. 

Rating valuations are usually carried out every three years, to help local councils set rates for the next three year period. 

They reflect the likely selling price of a property at the revaluation date, which was 1 August 2021, and do not include chattels.

Valuations have been prepared for 19,948 properties and show the total rateable value for the district is now $25.5 billion (up 10.9%), with the land value of those properties now valued at $17.7 billion (up 9.9%).

On average, the value of residential housing has increased to $441,000, while average land value is now sitting at $172,000.

Table showing property (CV) and land (LV) value changes by location, compared to 2018. Image supplied. 

Quotable Value (QV) prepared the new valuations for SDC.  

QV’s National Revaluation Manager Tim Gibson says the residential sector has seen significant growth since 2018.

He says this has been fuelled by record low interest rates, a shortage of listings, and people relocating or returning to the district. 

“The highest percentage growth within the residential market has been observed within the smaller provincial townships of Southland, largely due to their low value base. The larger townships of Winton, Te Anau and Riverton have experienced more moderate value growth in comparison.”

Meanwhile, the commercial and industrial sectors have had more moderate increases across the district. 

Commercial property values increased by 15% and property values in the industrial sector have increased by 21% since the Invercargill City’s last rating valuation in 2018.

Commercial and industrial land values have increased by 38% and 64% respectively.

Gibson says the exception to this is Te Anau’s commercial sector, where growth has been slow due to uncertainty caused by COVID-19. 

Table showing property (CV) and land (LV) value changes by category, compared to 2018. Image supplied. 

The rural sector in Southland District has seen no to moderate growth, depending upon the land use type. 

Dairy properties have, on average, seen a very slight reduction in property and land value of -0.2%. =

Pastoral properties were on average showing a 4.4% increase in capital value and a 3.7% increase in land values. 

Within the rural sector, forestry was showing the largest increase with 35.6% increase to capital values and 37.2% increase to land values.

Southland District Council say decisions about proposed rates from 1 July 2022 will be considered during the development of its Annual Plan 2022/2023.

They say the updated rating valuations are independently audited by the Office of the Valuer General and need to meet rigorous quality standards before they are certified. 

They are not intended to be used as market valuations for raising finance with banks or as insurance valuations.

New rating values will be posted to property owners after 16 February 2022. 

If owners do not agree with their rating valuation, they will have a right to object through the objection process before 24 March 2022.