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Double-digit jump in property values

Masterton property owners can now view their new three-yearly rating valuations online – and will soon receive them in the post.

Updated values have been prepared for all 13,664 properties in the district by independent valuers Quotable Value [QV], reflecting the likely price a property would have sold for on September 1, 2023 [not including chattels].

The impact these new rating valuations will have on rates for individual properties will be part of Masterton District Council’s [MDC] proposed Long-Term Plan, which will be available in early April.

They are viewable online through the MDC website’s property search portal.

Since the district’s last revaluation in 2020, the value of residential housing has increased by an average of 10.3 per cent.

The average house value is now at $564,000, while the corresponding average land value has increased by 15.4 per cent to a new average of $257,000.

QV Wellington manager Hoa Quan said the past three years have been a “rollercoaster” 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, which continued until the end of May 2023.

“Masterton was one of the hottest residential markets in New Zealand throughout 2021, peaking with an average value of just under $708,000 – a 41 per cent increase over the 2020 revaluation,” Quan said.

“Though property values have softened over the past 18 months or so due to increased interest rates, they’re still above where they were at the 2020 revaluation.

“The market stabilised in the three months prior to the revaluation date of September 1, 2023, with no subsequent value declines being recorded.”

The average capital value of an improved lifestyle property has increased by 16.1 per cent to $879,000, while the corresponding land value for a lifestyle property increased by 12.4 per cent to $437,000.

“Masterton’s lifestyle market has seen strong growth since 2020,” Quan added.

Meanwhile, commercial property values have increased by 13.8 per cent and property values in the industrial sector have increased by 47.3 per cent since the district’s last rating valuation in 2020.

Commercial and industrial land values have also increased by 17.6 per cent and 61.3 per cent respectively.

“The increase for industrial properties reflects the low vacancy rate pushing up rents for industrial properties over the three-year period,” Quan said.

“Land values have reduced from their peak due to higher construction costs, but they are still significantly above their 2020 values.”

Forestry and pastoral dominate the local rural sector, with a 33.3 per cent increase in capital values for the former and a 23.7 per cent increase for the latter.

“The rural market was very buoyant through 2020, 2021, and peaking mid-2022 on the back of strong demand for land for forestry conversion.

“From early 2023, however, rural markets have been subdued, with pressures from new forestry regulations, commodity prices, and rising interest rates.

“This has resulted in a rapid decline in farm values through 2023 – especially for pastoral properties that were previously sought after for forestry conversion – but they are still well above what they were three years ago.”

The total rateable value for the district is now $10.92 billion, with the land value of those properties now valued at $5.92 billion.

If owners do not agree with their rating valuation, they have a right to object through the objection process before May 3, 2024.

1 COMMENT

  1. This includes all extra services? No 👎 its for an overpaid council with to many constants plus heavy management. Stop bleeding rate payers and rental payers. Councils need to pull there heads in and do the work that’s required NO DREAMS AND REDUCE MANAGEMENT SIZE.

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