Rating valuation

We are required to value all properties in the district every 3 years for rating purposes.  This is termed a general revaluation. 

2011 revaluation of Gisborne district properties

All properties in the district have been revalued to reflect the market level at 1 July 2011.  Council contracts Landmass Technology Ltd to carry out the valuations.

The valuation process

There are 3 parts to valuing your property:

• Capital value
• Land value
• Value of improvements

What changed from the 2008 valuation

Residential values dropped because the market has been quiet. The drop was not the same across all residential properties. An over supply of new sections and the high value of coastal properties at the 2008 valuation meant the value of these properties dropped more than the average.

Nationwide values in the rural sector have dropped significantly from their peak in 2008. The Gisborne district has followed this trend. Isolated locations are showing the largest drop. Locally the downturn in horticultural crops has lead to a decline in cropping land values. The lifestyle market is tracking closely to the residential sector.

Māori land

A significant change to valuations for Māori freehold land this year is the ‘Mangatu discount’. It discounts the value of Māori land up to 10% depending on the number of owners.  The valuer will consider each valuation individually. 
This is a Te Puni Kokiri fact sheet explaining the Valuation of Maori Freehold Land

Initial discount for multiple ownership

Land that is considered significant may also be discounted up to 5%

Additional discount for special significance sites

How are rating valuations assessed?

Landmass Technology Ltd analysed the sales of comparable properties to determine movement levels per property type and location.  Using mass appraisal techniques, values are then adjusted to reflect movement levels against the former rating valuation.

Can the valuation be amended?

The rating valuation may be amended during the 3 year period between revaluations as a result of one or more of the following:

• any improvements being added or removed from the property
• any works affecting the land value
• any extraordinary event affecting the property value
• any change in the provisions of the operative district plan
• any subdivision, amalgamation or resurvey of the land
• any errors or omissions
• by request under Section 16 Rating Valuations Act 1998

If you have an addition or alteration to your property that required a building consent, we will send you a new valuation notice. This may or may not result in a change to your value.

Difference between a rating and a market valuation?

A market valuation will change depending on the state of the market at the time.  A rating valuation is set on the date of the general revaluation and does not change (except for amendments above) until the next revaluation.

Rates are based on the value of the property.  Rating values (RV) do not include chattels such as carpets, curtains, light fittings and any other such items.

Does Council set the rating valuations?

Council contracts Landmass Technology Ltd.  Landmass must comply with the Rating Valuations Act 1998, Rating Valuation Regulations and Rating Valuation Rules, and the Local Government Rating Act. The Office of the Valuer General audits Council and Landmass.

What is capital value? 

This is an assessment of the probable price that would have been paid for the property if it had been for sale on 1 July 2011. This value does not include chattels, plant, stock, crops, good will, machinery or trees.

What is land value? 

Land value is the probable price that would be paid for bare land at the date of valuation (1 July 2011). It includes any development work which may have been carried out such as drainage, excavation, filling, retaining walls, reclamation, grading, levelling, vegetation clearance, fertility build-up, or erosion or flood protection.  It does not include buildings, structures or improvements.

What is improvements value? 

This is the difference between the capital value and land value. It generally reflects the added value given to the land by any buildings or other structures on the property and any landscaping features.

Nature of Improvements
The most common types of these improvements are:

DWG - dwelling
FLAT - ownership unit/townhouse
OB - other buildings
OI - other improvements
FG - fencing