Valuations and Revaluation

Valuations

What are rateable values and why do they matter to me?

Rateable values are gathered for the Council and used as the basis for setting rates. Every property is valued at a common date. The most recent revaluation was 1 September 2021.

Rateable values have three parts:

Capital value - an assessment of the probable price for the property if it had been sold on the valuation date.
Note capital value does not include chattels.

Land value - the probable price that would have been paid for the land on the valuation date.

Value of improvements - in this context it is the difference between the assessed capital and land values.
The value of improvements should not be used for insurance assessments or build costs.

Revaluation what does it mean for you?

Why was my property revalued?

Legislation requires that every Council must complete a revaluation of the properties in its area at least once every three years. As Nelson City Council was last revalued in 2021, new rateable values must be set in 2024.

The Council has contracted Quotable Value Ltd (QV) to undertake this task.

How have the new values been assessed?

QV has reviewed all sales over recent months then using mass appraisal techniques has applied these to other similar properties. They have also reviewed properties for which building consents have been issued.

Owners of non-residential properties have been surveyed to obtain up to date information about rental income.

Valuation Rolls

The revised rating values are effective as of 1 September 2024, and the new notices of valuation will be posted to owners and ratepayers from 26 March 2025.

What are the overall changes in values over the last three years?

Since the 2021 revaluation, Nelson’s property market has experienced notable fluctuations. Initially, values rose rapidly due to record-low interest rates, but this upward trend reversed in late 2022, leading to a sharp decline. The downturn continued at a more gradual pace through 2023 before the market stabilised in 2024.

The latest valuations reflect ongoing economic pressures, including high interest rates, inflation, and a slowing economy. The impact of the 2022 weather event is also evident, with continued buyer caution in affected areas.

In the commercial and industrial sectors, values have shown modest growth. Owner-occupied properties have generally performed better than investment properties, as higher borrowing costs have placed pressure on the investor market.

What impact will the new values have on my rates?

The new values will be used as the basis for assessing rates as from 1 July 2025.

Council uses land value as the basis for its general and flood protection rates. No decisions have been made yet on the rates for 2025/26. The revaluation does not generate additional revenue for the Council; rather, it adjusts how rates are distributed among ratepayers.

If your land value has decreased more than the citywide average, rates increase will generally be lower than average, and in some cases, your rates may decrease. Conversely, if your land value has increased more than the citywide average, you can expect a higher-than-average rates increase.

Lodging an objection to your property valuation

When you receive a valuation notice, if you don’t agree with the value of your property, you can object to it.

• An objection can only be lodged prior to the objection due date on your notice.
• All properties that have an objection lodged against the values are inspected as it is a legal requirement.
• A valuer may contact you if the inspection and consequent review cannot be conducted from the outside of the property. The outcome of the consideration of your objection will be advised to you in writing.

General revaluation objections:

Any enquires regarding revaluation objections refer to QV's Valuation Objection.

Objection outside of the revaluation process

For all enquiries regarding your property valuation, please refer to the QV website.

Please note that there is a charge for this service.

How do I make enquiries?

If you wish to find out more about your rating value visit ratingsvalues.co.nz.

Enquiries about the new valuations can be made by calling QV on 0800 787 284 (0800 QV Rating).

If your enquiry is about a rates issue, please contact Nelson City Council on 03 546 0200.