Graph of the Wellington residential price index
The valuations are an important component in Wellington City Council's process of setting rates for the 2010/11 financial year.
The average house price has fallen 3.5 percent to $538,000, with the corresponding section value reducing 4.4 percent to $258,000.
Quotable Value Operations Manager David Nagel says most property sectors within the City have had value reductions within the range of 0-10%.
"The residential property market has been volatile over the past 24 months with some quite large reductions in values throughout 2008. However, falling interest rates, coupled with other positive economic data throughout 2009 has instilled some confidence back to the housing market which has softened the value reductions for this revaluation."
The graph of the Wellington residential price index shows the market peaked in the first quarter of 2008, which was followed by 12 months of decline through to the first quarter of 2009. The three months to September 2009 saw values increase but they are not yet up to the levels of September 2007.
Mr Nagel says ownership flats and townhouses have also reduced in value by 4.5 percent, with the average value now $372,000, while the average ownership flat and townhouse land value is now worth $144,000, a reduction of 4.2 percent on 2007 levels. Apartment values have reduced by 3.4% with the average now $417,000, with the corresponding land value falling 4.5% to $151,000.
"Commercial and industrial properties have also shown small declines, with most developed properties reducing in value between 0 and 10 percent on 2007 levels. Rural and lifestyle properties have shown an average decrease of 7.3% on 2007 levels."
The revaluation figures show that the total capital value of the 74,037 properties within Wellington City is now $48.4 billion and the land value of those properties is $21.9 billion.
Copies of the latest valuations, showing the value of properties as at 1 September 2009, will be mailed to every Wellington City property owner next week. Owners can also see the new values at the Council Service Centre at 101 Wakefield Street.
Wellington City Council Chief Financial Officer Neil Cherry says it's important property owners remember that a change in the rateable capital value of a property does not mean rates will change by a similar percentage.
"The Council uses property values to divide the rates it needs to collect between all ratepayers - it doesn't collect more rates just because capital values have increased and it doesn't collect less rates just because capital values have decreased."
The actual rates increase for each property will depend on a range of factors, including:
- the Council's overall rates ‘budget' calculated each year in the Annual Plan
- the capital value change for your property compared to the average change
- any change in the mix of services the Council provides
- any change in targeted rates or the Council's rating differential.
The new valuations will be available on the Council's website later this year.
If property owners do not agree with their valuation, they have until 11 December to send objections to Quotable Value. Objection forms are available from the Council Service Centre, 101 Wakefield Street, or from Quotable Value.