Property values skyrocket - Tararua

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Property values skyrocket
16 October 2005
By SONITA CHANDAR

Tararua property values have leapt 64 percent in the last three years, playing catch up with the rest of the country but also benefiting from the robust rural economy.

The capital value of properties in the region now totals $4.08 billion from the last valuation in 2002.

In a presentation to the Tararua District Council, Quotable Value Ltd manager Simon Willocks also said that the land value had increased by 85 percent to $2.6 billion.

Although values have increased across the property spectrum, huge increases have been seen in residential property in the small townships of Eketahuna and Woodville.

The value of sections in Eketahuna has increased on average 350 percent in the three years while capital values have increased on average by around 80 percent. Similarly, large land value increases have been seen in Woodville township with values rising 340 percent in the three years since 2002 and capital values increasing 60 percent.

There has also been a notable increase in the value of coastal property and the largest increases have occurred in lower value properties.

The average house price in the Tararua is now $115,000, up 62 percent and the average price for a section $22,500, an increase of 143 percent.

The average price for a home unit has risen to $98,000 up 49 percent while the average unit section has seen a 105 percent increase to $12,500.

Mr Willocks said the Tararua residential sector has thrived on the back of a very strong rural economy.

"The high percentage increases are coming off a very low base value in 2002. The new values show a good healthy increase in three years."

Rural properties have seen a strong buyer demand with no indications of letting up, despite the high New Zealand dollar.

The largest increases have been in the hill-country blocks including forestry.

On average, values in this sector have risen 72 percent in capital value and 82 percent for the land value.

There has also been a strong demand for lifestyle properties, with values mirroring the residential increases. Affordability has increased at the bottom end of the market.

Average capital value for lifestyle blocks has risen 50 percent to $230,000 while the average land values are up 98 percent to $82,000.

Tararua District Council financial services manager Peter Wimsett said the increased values did not necessarily mean that everybody's rates would go up.

"If everybody's land values went up by 100 percent then there would be no effect on your rates. This is because the relationship of your property value to every other property value is unchanged."

Mr Wimsett said that if your land value went up only 90 percent while land values for everyone else went up by 100 percent, you could expect a rates decrease and your neighbours will pay more to make up for the lesser amount you are paying.

Mock rate invoices based on the draft annual plan will be sent out in April, which will reflect the increased values and what effects these will have on rates.

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