New rating valuations released

Properties across Christchurch and Banks Peninsula have seen an average increase in residential property values of 47.3% since the last revaluation in mid 2019, according to an independent revaluation undertaken by Quotable Value Limited (QV).

From Wednesday 1 February, property owners can check ccc.govt.nz/rates to see the new valuations, which have been determined by QV by looking at relevant market sales across the district around 1 August 2022.

The Council is required to receive an independent general revaluation every three years to ensure that rates are spread fairly across the city.

The new values will apply to rates from 1 July 2023. They don’t affect the total rates collected by Christchurch City Council, but they do affect how this is shared out between property owners.

“Broadly, values across the city have increased substantially compared with the previous revaluation three years ago, particularly for residential property,” says Christchurch City Council Chief Financial Officer Leah Scales.

“The significant increase in the residential valuations has moved more of the rates burden from business to residential ratepayers. Without some action from the Council, this will increase rates for most residential ratepayers while reducing rates for most business ratepayers.

“To keep the proportion of rates paid by business properties the same, we’re looking at increasing their general rate differential,” Ms Scales says.

The current business differential is 1.697, which means a business property pays general rates at 1.697 times what a standard property with the same capital value pays. The proposed differential on business properties of 2.25 would work by scaling up the contribution that business properties make to general rates. The differential does not apply to any targeted rates like sewerage and water supply.

“While this is a significant change in the business differential, the result will be that the business sector as a whole pays the same proportion of overall rates as they currently do. Christchurch currently charges the lowest business differential of all main cities in the country. The public will get a say on the proposal as part of consultation on the Draft Annual Plan 2023/24,” Ms Scales says.

The Draft Annual Plan 2023/24 is scheduled to be adopted on 28 February 2023, with public consultation occurring shortly after in March/April.

Property owners will receive letters in the coming days informing them of their new valuations, with instructions on how to lodge an objection with QV.

“If you feel like the value is incorrect, you have until 16 March 2023 to object,” Ms Scales says.

“QV sets the rating values based on market value at a certain snapshot in time – in this case 1 August 2022. It’s not an indication of how much you may have spent to build your home, or the value you added through renovation. If you want to object, QV will consider the individual factors that apply to your property and potentially recommend a different value.”

You can make an objection:

• Online at qv.co.nz.
• By picking up an objection form from the Civic Offices or a Council library or Service Centre. Alternatively you can call 0800 787 284 and organise to have a form sent out.
• By emailing ratingsupport@qv.co.nz with the details of your objection.

House price movement, 1 August 2019 to 1 August 2022

See below for average residential values and changes by area.