Market prices higher than QV figures
Leading real estate agents say they don't believe New Plymouth's recently released and stagnant Quotable Value ratings are accurate.
QV's 2013 figures show overall land value has increased by only 2.3 per cent in the district since 2010 and capital value has increased by a modest 0.3 per cent.
Overall that means the value of the district has increased by 2.9 per cent from $16.42 billion in 2010 to $16.9 billion in 2013.
But real estate veteran Garry Malcolm said he thought New Plymouth property values had increased on average by about 4 to 5 per cent in the last three years.
He said QV calculated blanket increases or decreases in an area and it was important they were not confused with market values, as the two did not compare.
"Market values are still considerably higher than rateable values."
REINZ representative Maree Gendall said the QV figures are there as a guide for council rating and agreed they do not necessarily reflect property market values.
"They can be used as a general guide for property valuing - they're sometimes right and they're sometimes off the mark."
She said the QV figures were commonly used by banks as a lending guide, but the valuations were calculated based on blanket values of streets or areas.
Mr Malcolm agreed banks were looking at the rateable value but it was not a true depiction of residential market value.
"The Taranaki economy is stable but there's no 'second home lifestyle'. People are reducing rather than increasing their debt."
He said there had been a slight glitch in the market after the Reserve Bank's mortgage lending restrictions came into force on October 1.
"The demand for houses under $300,000 decreased because of first home buyers dropping out of the market."
He said the current increase was in the middle to top end of the New Plymouth property market.
QV's Tony Welch said land value is one of the variables used by the New Plymouth District Council to assign a proportion of a property's general rates.
In South Taranaki and Stratford, capital value is used to set rates.
According to QV, although rating values may change, it does not necessarily mean your rates will follow proportionately.
The new valuations will be used to determine 2014/15 New Plymouth district rates, which will come into play on July 1 next year. Fairfax NZ
Taranaki Daily News