Mayor's Message
Property valuations and rates
The owners of all 23,000 properties in Nelson will this week receive their new rating valuations from Quotable Value (QV). It is important people understand what it means, how it affects your rates and what to do if you disagree with the valuation.
Council gets rating valuations every three years, which we use to help set the rates for the next three years. These latest valuations are based on the value of the properties on 1 September 2024 and don’t include chattels such as curtains and carpets.
QV does a detailed market analysis of all property types, reviews Council’s building and subdivision consents, accesses property sales data and uses GIS mapping tools as well as roadside inspections to estimate the fair market value of every property. The QV team also accessed the effect on values in areas damaged by the August ’22 storm and changes in Council’s rules that affect where development can occur.
The last valuations were on 1 September 2021 during the property market boom when interest rates were at artificial lows. This resulted in average land values jumping 73% and the average house price increasing from $623,000 in 2018 to $885,000 in 2021.
These latest valuations show average residential land values have dropped 16% and average Nelson house values have fallen 9.4% since 2021 to $812,748. The total capital value of all Nelson property covering residential, commercial, industrial and rural is $22.69 billion, down 4% on 2021 and land value is $11.3 billion, down 12% from 2021.
There are areas where values have changed significantly from the average. Land valuations in the areas affected by landslides at Tāhunanui have fallen by 40% and in flood-prone areas like Nile St East by 30%. Forestry land has had a sharp increase of 35%. Industrial property has increased in land value by 22%, reflecting the shortage in the city.
These changes in valuations will affect rates bills from 1 July. Rates bills are a mix of a general rate, a flood protection rate, a uniform annual general charge and specific charges for water, stormwater, wastewater and storm recovery. It is only the general and flood protection rates, based on land valuation, that are affected by these revaluations.
We determined last year through the Long Term Plan 2024-34 that the average rate rise for 2025-26 would be 6.5%. If your property’s land value has dropped 16% (the average across the city), your rates will be increasing by about 6.5%. If your land value has dropped by more than 16%, your rate increase will be less and about 900 properties will get a rate reduction. If your property has dropped in value by less than 16% or gone up, you will have a bigger rate increase. There are about 900 properties that will have a rate increase of more than 10%.
Property owners have until 2 May to object to the valuation. This will trigger a valuer reconsidering the valuation and may involve a property inspection. If you still disagree, you may request a hearing by the Land Valuation Tribunal. I will be at the Nelson Market on Saturday, 5 April, if any residents have questions.
Mayor Nick Smith
