The average capital value of residential property has risen by 3.7% to $300,000 and the land value component alone (which rates are based on) by 8.5% to $148,000.
The new values reflect the likely price a property would sell for (excluding chattels like curtains and appliances) on the effective valuation date of 1 September 2015.
"Since the last revaluation in 2012, residential property values for the greater part of the City have shown modest growth." says Simon Willocks, Quotable Value Team Leader Palmerston North.
Kelvin Grove, Milson, Cloverlea, Hospital and Ashhurst residential properties have performed best. Capital values in Kelvin Grove have increased by an average of nearly 9%. In contrast the high end and the bottom of the residential market have held fast.
There have also been significant increases in land value reflecting the strong demand within the newer subdivisions on the periphery of the City including Kelvin Grove, Milson, Summerhill, and Ashhurst, as well as inner City locations including the Hospital area and affordable land parcels in other sought after areas. Average land values in Kelvin Grove have increased by nearly 26%.
Rural and Lifestyle properties have generally held their values.
The Commercial and Industrial value changes are more variable, in a market where location, property type and seismic issues are driving the sector's performance. Overall these capital values have decreased by 2% and land values by 5%.
The new rating values have been prepared by Quotable Value Ltd (QV) on behalf of the Palmerston North City Council. QV uses a mass-appraisal process to determine the new rating values. This involves taking relevant property sales in an area, around the effective date, and establishing a market trend which is then applied to similar properties in that area.
The mass-appraisal process is complemented with property value reviews, as a result of building consent work, subdivisions, sales inspections and ratepayer requests to update rating values.
Rating values are independently audited by the Office of the Valuer General, with rigorous quality standards being met before a rating valuation is approved.
The Palmerston North City Council will use the new values as the base for setting rates for the 2016/17 financial year. Council's Strategy Manager - Finance, Steve Paterson says Council staff will be reviewing the new values and then advising Council what impacts they may have on rates for individual properties.
"It is important to realise that the changes to values does not increase or decrease the total rates revenue for the Council", says Mr Paterson. "Instead, rates will be spread amongst ratepayers in slightly different proportions than before."
Copies of the valuation roll are available for inspection at the Palmerston North City Council offices. The new valuations can be viewed here.
Objections to the revised valuations must be lodged, in writing or online at www.ratingvalues.co.nz , no later than 10 December 2015.
Objection forms are available from Palmerston North City Council or Quotable Value Limited and should be posted to:
Quotable Value Ltd - Business Support Private Bag 39 818 Wellington Mail Centre LOWER HUTT 5045
More information about "Understanding your Rating Value" can be found at www.qv.co.nz