Wairoa District property owners are now receiving their new three-yearly rating valuations in the post.

The total rateable value for the district has reduced to $3.777 billion, with the land value of those properties now valued at $2.486 billion, down 11% and 19% since the 2021 district revaluation.

The new rating valuations have been prepared by independent valuers Quotable Value (QV) on behalf of the Wairoa District Council.

Updated values have been prepared for all 6,958 properties in the district. They reflect the likely price a property would have sold for on 1 August 2024, not including chattels.

QV lead valuer Damien Hall commented: “Wairoa’s residential housing market has experienced a number of challenges since our last revaluation in 2021. The cyclone was a turning point in what was a good market at the time. The further flood events in 2024 caused additional damage across the district at a time when the economy was still struggling.

“Flood-damaged areas, specifically in Wairoa township, have seen a greater drop than the overall average, with some areas falling between 35% to 50% from their 2021 values. Purchasers are cautious and reluctant due to it being harder to source mortgages and insurance for flood-damaged properties, particularly in areas such as North Clyde.”

Since the district’s last revaluation in 2021, the value of residential housing has decreased by an average of 1.4%. The average house value is now at $367,000, while the corresponding average land value has decreased by 8.4%.

Mr Hall said areas such as Mahia Peninsula had shown resilience. “Residential values have held from their 2021 values and higher quality properties are still seeing an increase in value, although activity remains quiet.”

The rural market has also seen a decline over the past 18 months, with values well back from their 2021/2022 peak. On average, pastoral properties have experienced a 22% decrease in value since 2021 and land is down 26% for the same period – though this varies based on individual property characteristics. Forestry for both capital value and land value is down 11% from their 2021 values.

The Wairoa lifestyle market indicates a trend of increasing values from late 2021 through to 2022 for vacant land, with a drop-off in value and activity in 2023. Mr Hall said the increased cost of capital and capital outlay within the previous two years have been the main contributor in the slowing of the market. “However, high quality and well-established properties have shown resilience,” he added.

“The market for improved lifestyle shows a similar pattern of sales activity and prices lower than 2021 values. Buyer enquiries and market momentum remain subdued, while the impact of flood events has compelled purchasers to proceed with caution. The lifestyle market has fallen just shy of 10% in three years with land values falling around 20% for the same period.”

The Wairoa commercial and industrial market has been relatively quiet over the last three years with limited sales activity. Commercial property values have declined by 13% and property values in the industrial sector have fallen just shy of 2% since the district’s last rating valuation in 2021. Commercial and industrial land values have also decreased by 15% and 19%, respectively.

Wairoa District Council's Chief Executive Officer Kitea Tipuna said rating valuations are carried out by independent valuers on all properties in New Zealand, usually once every three years, to specifically help local councils apportion rates for the following three-year period. 

“The effective rating revaluation date is August 1, 2024, so any changes in the market since then won’t be included in the new rating valuations.

“The updated rating valuations are independently audited by the Office of the Valuer General and need to meet rigorous quality standards before the new rating valuations are certified. Rating valuations should reflect the likely selling price of a property at the effective revaluation date and are not designed to be used as market valuations for raising finance with banks or as insurance valuations.”

Mr Tipuna said rating values are just one of a number of factors councils use to allocate rates. A property owner’s rates do not necessarily change by the same percentage as the valuation change.

“The valuation is only a means of levying/distributing the rates across the district. The total amount of rates required for the district does not change because of the revaluation of the district.

“The Council determines rate requirements after considering the region’s long-term budget every three years. The Council looks at the cost of services the district needs and subtracts revenue from fees and charges and other sources, which leaves the rates required to run the district. That rate requirement is then shared across the district based on each property’s capital value.”

What are rating valuations?

Rating valuations are usually carried out on all New Zealand properties every three years to help local councils assess rates for the following three-year period. They are not intended to be used for any other purpose, including raising finance with banks or as insurance valuations.

They reflect the likely selling price of a property at the effective revaluation date, which was 1 August 2024, and do not include chattels. Any changes in the market since that time will not be included in the new rating valuations, which often means that a sale price achieved today will be different to the new rating valuation.

Rating valuations are calculated using a highly complex and detailed process that utilises all relevant property sales from your area. A large number of properties will also be physically assessed, particularly those that have been issued building consents in the last three years.

The updated rating valuations are then independently audited by the Office of the Valuer General to ensure they meet rigorous quality standards, before the new rating valuations are confirmed and posted to property owners.

If owners do not agree with their rating valuation, they have a right to object through the objection process before 14 March 2025.

11 February 2025

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