Gore leads the way in southern rateable values increases since 2007 market peak

Gore's rateable property valuations are 4.6 per cent up on 2007.
RACHAEL KELLY/FAIRFAX NZ

Gore's rateable property valuations are 4.6 per cent up on 2007.

Gore's rateable property values are leading the way in the south since the market peak in 2007 showing a 4.6 per cent increase while surrounding districts are going backwards.

According to the latest statistics from Quotable Value (QV) nationwide residential property values surged ahead in the year to December 2015 at a rate of more than 10 per cent faster than for the same period the previous year. The short-term view was not as rosy for Gore with a -0.2 per cent drop in values, however since 2007 values overall had risen 4.6 per cent. In the Clutha district, values have dropped -9.7 per cent on average, while in Southland they have dropped -7.7 per cent and -2.4 per cent in Invercargill. Invercargill's rating book has picked up in the past year with a 5.2 per cent increase during the past 12 months.

Gore District Mayor Tracy Hicks said Gore's valautions were up for review this year, which could be a factor as the valuations are done every three years.

"From my perspective, I'm really encouraged to hear this. The Christmas trading period we've just been through has indicated there's strong retail sales an my understanding is in real estate there's a lot of interest."

Gore's rebranding had been successful and they would continue to reinforce the rural city living message.

"I believe it has been [successful]. We've had some really strong feedback from out of towners in particular."

Values in most districts and provincial centres rose during 2015 with the exception of the Ruapehu District in the North Island and the Grey, Buller, Clutha and Gore Districts in the South Island.

The West Coast of the South Island saw the greatest declines in value following tough times in the coal industry and the closure of some mines in the areas. Buller District values decreased 9.9 per cent and the Grey District was also down by 6.2 per cent in 2015.

Dunedin City home values rose at a moderate rate of 5.7 per cent year on year and 2.1 per cent during the last three months of 2015 which is faster than the market there has risen at any time since the previous peak of 2007.

Whangarei District and Queenstown Lakes District also saw values up significantly rising 12.9 per cent and 12.1 per cent respectively and the Queenstown Lakes District now has the highest average value in the country outside of Auckland at $776,671.

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Overall the nationwide average shows residential property values increased 14.2 per cent or $69,472 during 2015 from $488,674 in December 2014 to $558,146 in December 2015.

The average national value increased 2.9 per cent during the final three months of 2015 and nationwide values overall are now 34.7 per cent higher than the previous market peak reached in late 2007.

Professionals managing director and Real Estate Institute of New Zealand Southland spokesman Jon Irving said that rating values were a guide only and market value was usually established through gaining a registered valuation and through indepth market analysis.

"I think it would be fair to say they are a guide."

However, Irving said rating valuations tended to be inconsistent.

Professionals had had a busy start to 2016 with about 20 properties being listed already, he said.

"We're starting hot."

 - Stuff

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