Property and land values have dropped throughout the Kapiti Coast and there have been huge drops in the values of some rural properties.
The latest Kapiti Coast valuations show the total capital value of the 25,000 properties within the district has reduced by 4% from 1 August 2008 to $10.86 billion.
The corresponding land value has gone down 6% to $5.5 billion.
These figures come from the latest triennial District revaluation. Owners will be told of their new rating values by post from today.
Rating Valuations have an effective valuation date of 1 July 2011. The Rating Values have been prepared for the Council by Quotable Value (QV).
Some rural properties throughout the district have reduced by up to 30% since the last valuation with the biggest falls affecting the larger economic holdings.
“The rural sector has enjoyed some big value increases over the past few years, however while commodity prices are still strong, farmers are faced with growing liquidity issues reducing their ability to service debt,” says Mr Nagel.
Otaki Beach property down sharply
The capital value for residential properties in Ōtaki Beach has reduced between 10-15% over the three years since the last revaluation. Residential section values in Ōtaki Beach have also decreased between 10-20% since 2008.
“Ōtaki Beach has been a big mover over the previous two revaluations in 2005 and 2008, however owning a beach house in the current economic climate has become an unaffordable luxury for many,” says Mr Nagel.
“This is evident in the selling prices achieved in Ōtaki Beach versus the more commuter friendly southern beaches closer to Wellington.”
Other residential properties in the district have also fallen in value. The average value for a residential dwelling is now $377,000, down 2.4% on 2008 levels, while the average value for a section is now $185,000, a reduction of 3.9%.
“The Kāpiti district residential sector has closely followed the national trends with decreasing sales volumes and extended selling periods,” says Mr Nagel.
Lifestyle properties hit
Lifestyle properties have also reduced since 2008 with the average capital value reducing 5% to $686,000, while the corresponding average land value has decreased 7.1% to $347,000.
Owners will receive their new rating valuations in mid October. Copies of the valuation roll are also available for inspection at the Kāpiti Coast District Council offices.
Owners who believe their Rating Value is not accurate, can object. Owners have until 18 November 2011 to lodge objections to the new values.
Objections can also be lodged online at QV.co.nz or call 0800 787 284 to request an objection form.