Council tips decline in values
The value of some Hamilton commercial and industrial properties may have slumped by 10 to 20 per cent when the city's new valuations emerge, says the Waikato Property Council.
Spokesman and former president Graham Dwyer said the expected declines were because of the market downturn since the last valuation in 2009, and because in that year, many land values were "quite high".
Hamilton is one of the rare New Zealand local authorities which rate on land value, not capital value.
Dwyer said the results of a "desk-based" revaluation review had increasingly less relevance in the market.
"We are finding that market value is far more utilised," Dwyer said.
Some commercial property values, such as those for suburban shops and well-located property, could rise, he said.
The effects of the economic downturn and earthquake-prone building concerns, which have had the effect of prolonging vacancies in some central city streets such as Alexandra and Collingwood, may not be reflected in a drop in valuations, Dwyer said.
"The methodology of the valuation means one good sale in a street like that can have an impact on the valuation."
Meanwhile, the council will "keep banging away" at promoting a change to capital value-based valuations.
The Property Council lobbied hard for the change last year but city councillors showed no stomach for the change after a record number of protest submissions late last year.
The change was seen as putting too much cost on to residential ratepayers.
At $3000 and up, it was too expensive for commercial and industrial building owners to get their own capital value-based valuations done, Dwyer said.
"All we are after is to pay our fair share," he said.
Commercial sector property owners often did not use services such as rubbish collection that they were rated for.