Average Wellington house price: $550k

KATIE CHAPMAN
WELLINGTON REPORTER
Last updated 12:10 31/10/2012

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Residential Property

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Home owners in Melrose and central Tawa will see the biggest increases in their property values in the latest round of rating valuations.

But while that will be good news for those looking to sell, it could also mean higher rates bills.

The average house value in Wellington has risen 0.7 per cent to $550,000 in new valuations being released by Wellington City Council.

The three yearly valuations by Quotable Value look at capital value, and help determine what proportion of rates you pay.

Property owners will receive notification of their new rateable value in the mail next week.

QV Wellington operations manager David Nagel said there had only been small changes across the commercial and residential sectors, but some areas had seen higher growth.

''Certainly with the residential sector it's steady as she goes.''

The biggest increase was in Melrose, where the average price rose 4.9 per cent to $522,000.

That was largely driven by higher market demand for the area, particularly due to the burgeoning film industry.

The affordability of houses in central Tawa, and it's appeal for young families, saw a 4.6 per cent increase to $373,000.

The biggest decrease was in central Wellington, where a 5.1 per cent decrease saw the average price drop to $418,000.

While those getting big increases could be pleased, it may also mean a rates increase.

Each property sector pays a proportion of the rates take, and property valuations are the way rates bills are allocated across each sector.

Council's financial planning manager Martin Read said this year's rates were already set,  so would not be affected but ''hypothetically'', next years rates could be altered.

If the rates were split across sectors in the same way next year, people whose property values change by more or less than the 0.7 per cent average could see shifts in their bill.

''If their house price price individually has increased by more than the average ... they will be paying a slightly larger proportion of the rates.'' He could not speculate on the dollar amount for individual people.

While residential values remained steady, the average commercial value dropped 1.5 per cent, largely driven by looming earthquake strengthening bills for many properties.

With in the commercial sector's 5105 buildings, 455 saw their values drop by more than 20 per cent.

Mr Nagel said it was driven by the buildings being less appealing for office space, and the bills associated with earthquake strengthening.

Property owners not wanting to wait for valuations to arrive in the mail can visit the city council office to check hard copy records for their valuation. People can lodge objection to their valuation until December 14.

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The average townhouse value decreased 0.5 per cent to $370,000, and apartments fell 2.1 per cent to $401,000. The drop for apartments was largely driven by valuation drops in the commercial sector because of earthquake strengthening bills.

 

Contact Katie Chapman
Wellington reporter
Email: katie.chapman@dompost.co.nz
Twitter: @katiechapman28

- The Dominion Post

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