2015 revaluation figures and sales map | What does the revaluation tell us? | What does this mean for my rates? | What are the important dates? | How is your rating valuation calculated? | How to read your Notice of Valuation | What is the difference between capital value and market value? | Objecting to your new rating valuation | What property information does the Council record? | Questions and answers
Tauranga’s latest city-wide property revaluation was completed in November 2015. A revaluation is a process we go through every three years to reassess the value of every property in the city, as required by the Office of the Valuer General. Valuations are conducted by an independent company (LandMass Technology Limited).
Revaluations tell us about the trends in property sales in Tauranga and provide us with updated valuations that are used to calculate each property owner’s share of the rates over the following three years.
The 2015 rating valuations are based on the property market conditions at 1 July 2015, and will apply to rates starting 1 July 2016.
2015 revaluation figures and interactive property sales and valuation map
The average city-wide increase in capital value for residential properties between 2012 and 2015 is 19%. The average increase for all rateable properties (including lifestyle, horticulture, commercial and industrial) clocked in at 17%. Lifestyle blocks gained 15%, commercial properties and industrial properties 12%.
The map below shows detailed capital value movements since the 2012 revaluation. Hover over suburb names for a snapshot of trends in each area, and click on any suburb name to launch our interactive sales and valuation map.
What did the revaluation tell us? The trends
The new rating valuations were assessed in the midst of a rapidly rising market, boosted by Tauranga’s growth and the increasing pressure on the Auckland property market. This rise started around April 2015, gained momentum in the months leading to the revaluation (1 July 2015), and continued after 1 July. This follows two and a half years of minimal value movements.
This was reflected in this 2015 revaluation, which saw capital values in certain areas soar. This trend is most prominent in established areas such as Mount Maunganui and Omanu, and less dramatic in peripheral suburbs with land available for new building. Note there are quite large variations of value movements within each suburb, and that the market has continued to evolve after 1 July. This means that your new valuation will probably not reflect the actual market price of your property today.
Overall it is the lower end of the market that saw the highest movements in capital value, with high demand for the cheaper properties driving prices up. On the other hand prices at the higher end of the market (e.g. waterfront properties) remained relatively flat – due to less demand for those properties at the time of the revaluation.
However property sales took off since the revaluation date (1 July 2015). This is why 2015 valuations mostly don’t reflect actual market price of properties after that date. This applies to both the lower and higher ends of the market. See the Revaluation 2015 newsletter for more information and trends.
Revaluation 2015 newsletter (1.2mb pdf)
What does this mean for my rates?
A 21% valuation increase (for example) doesn’t mean a 21% rates increase as the revaluation doesn’t affect the total amount of rates collected by Tauranga City Council.
The Annual Plan is Council’s budget and work plan for the year ahead, and sets the amount of rates that will be collected to pay for that year’s work. The Annual Plan 2016/17 set an average rates increase of 2.2%, after growth. Through the revaluation we updated the capital values of properties across the city. Your property’s capital value (CV) influences the share of rates that you pay.
This means your August 2016 rates invoice probably doesn’t show a neat 2.2% rates increase from last year. If through the revaluation your property’s CV went up more than most (the average CV increase was 17%), then your rates increase will also be more than 2.2%. Likewise if your CV increased by less than 17%, or if it decreased, then you’ll have a smaller rates increase to pay, if any. Please call the rates team on 07 577 7000 with any questions.
What are the important dates?
- 18 November 2015: Notice of Valuation sent to all property owners
- 18 November – 8 January 2016: objection period open. Landmass will respond to all objections before 1 July 2016. All objections will be reviewed on an area by area basis. Please note that there is no priority allowed in the order of review of objections.
Objecting to your new rating valuation
- 1 July 2016: the new values start applying to rates
How is your rating valuation calculated?
Residential rating valuations are calculated using mass appraisal techniques. They are not individual valuations of every property like those undertaken by private valuers. Mass appraisal valuations are used for all rating valuations both in New Zealand and globally. The value of your property is determined using a range of factors and evidence. First the Valuer reviews and analyses sales of properties in your area over the last three years and in particular around 1 July 2015. Where there is little sales activity further evidence such as asking and selling prices in the market are analysed. You can see sales since 1 July 2012 or since 1 July 2015 in your area by using the Rating Information Database. Go to the Property Values and Recent Sales page for details.
Property values and recent sales
This initial analysis is followed up by site inspections for all properties that have sold around 1 July 2015 and inspections of properties that have sold outside of the expected value range at any time since the previous revaluation. In addition, the Office of the Valuer General (which audits the revaluation process) has requested that all homes or properties with known weather-tightness or earthquake issues be inspected at the time of the revaluation.
All of this information is used to create a model for valuing similar properties and the relative value of all properties in the city. The rating valuation is a reflection of what a willing seller might be expected to receive from a willing buyer on sale of their property (excluding chattels) on 1 July 2015.
LandMass Technology is an independent company, specialising in rating valuations and the valuation process is audited independently.
How to read your Notice of Valuation
Your Notice of Rating Valuation shows three different values.
This is what your property might have sold for at 1 July 2015. (The capital value is actually 3-5% less than the likely sale value for most homes. When you sell your house the sale value includes chattels - things like new carpet and curtains. The rating valuation capital value excludes chattels).
This is the value of the land on its own without any improvements. This is not calculated on a linear $/m2 basis. Different categories of land have different calculation basis. For standard residential properties a $/m2 value is applied to the house site and the residual land is valued at a lower $/m2.
This is the difference between the Land Value and the Capital Value. It reflects the value of your house and other improvements you’ve made to the property that may have required building consents.
What is the difference between capital value and market value?
Capital value is the probable price that would have been paid for the property at the date of the valuation (1 July 2015). Market value is the probable price that would have been paid for the property at any given time, depending on market factors.
Objecting to your new rating valuation
Homeowners can object to their new rating valuation if they think it doesn’t accurately reflect the value of their homes. You can do this for free during the revaluation objection period. The objection period will be open from Wednesday 18 November 2015 (date the new valuation notices are sent out) until Friday 8 January 2016.
The objection period for the 2015 Revaluation is now closed. You can however make self-corrections to your valuation at any time throughout the year, or ask a valuer for a review.
Objecting to rating valuations
What property information does the Council record?
The Valuers record a wide range of information for each property including:
location of property
slope of land
quality of landscaping
type of view
- scope of view
- building type/appearance
- interior modernisation
area of largest continuous living space
areas not included in main living space
other substantial improvements drive on access
properly formed and covered driveway
You can see what information we hold about your property on the rating information database. Search for your own property and click on the link View National Property Data. You can send us self-corrections and we will respond to your request. Further information about valuations and requests to revalue properties can be found on the property valuation page.
Rating information database
Questions and answers
Q1. Is the Rating Value lower than the market value?
While the Rating Values are based on market sales they are a snapshot of the market at a single point in time. As real estate generally tends to fluctuate over time, a rating valuation cannot be expected to represent the true value for long.
Rating Values also do not include chattels, which often can be quite considerable – including carpets, curtains, light fittings and other loose furniture.
Q2. How do you assess Rating Values?
By mass market modelling. Council’s Valuation Service Provider (VSP) Landmass Technology inspect and analyse all sales prior to setting the rating valuations, particularly those leading up to the revaluation date. This process involves researching low or high sales to determine whether or not they are true market sales. The existing 2012 values are then indexed based on this sales analysis.
In terms of inspections, emphasis is given to ‘hotspot’ areas i.e. those where there is significant movement or where special features may influence property prices. For example: beach front property, apartments, new subdivisions, monolithic cladding.
Q3. How can you value my property without inspecting it?
It is not feasible to inspect every property in the district nor do we consider it necessary. We already hold individual details about your property, which includes a plan of the main improvements, age, floor area, construction type, other on-site improvements etc. Landmass receive notification of any major change such as subdivisions and building consents issued from the Council and carry out ongoing inspections to record other changes.
Q4. Why has the Land Value gone up a lot more than the Value of Improvements?
Assessing your rating valuation involves research into two distinct areas of the real estate market –
- house sales, and
- vacant bare land section sales
The house sales are used to derive the capital value and the vacant section sales determine the land value. These two sales groups can behave independently of each other. Improvement value is the difference between capital and land value.
In Tauranga’s case, generally the land value has increased at a much higher rate than the capital value.
Q5. Will this valuation increase my rates?
Not necessarily. Usually only properties which have Capital Value increases more than the average will pay higher rates, but that will depend on whether Council decide to keep total rates the same and what differentials (between property types/categories) they decide to adopt.
Q6. I’ve got a registered valuation at $550,000 and you’re telling me it’s worth $450,000!
The valuation date is 1 July 2015. When the notices are issued in November they may already be out of sync with a fast moving market. Compare the date of the registered valuation (in a buoyant market it’s possible both are correct). If you want to make an objection, include a copy of the registered valuation as supporting evidence.
Q7. I’ve improved my property heaps in the last two years and I’ve seen no valuers around this neck of the woods.
Valuers will generally review a property value when there has been a building or resource consent which may change the value. There are times where properties are improved without a consent which may impact on the rating value. Find out how you can make a self-correction and a property review in our objections section.
Objecting to rating valuations
Q8. My mate who’s a qualified real estate agent reckons I’ll get far more than your valuation if I put it on the market.
Our values are based on confirmed sales (excluding chattels) prior to 1 July 2015, not asking prices. They are not the same as real estate listings, which often include a margin for bargaining. If you want to lodge an objection it is helpful to include the comparable sales from pre-1 July with your supporting evidence.
Last Reviewed: 20/07/2016