Friday, May 24, 2024

Hamilton homes hit new high

Hamilton City Council’s new property rating valuations show the city is now worth $71.4billion.

In a statement today, Council said the city’s total property Capital Value – the total value of the land and any buildings on it – had increased 53%, with Land Value up 67% since 2018.

Residential property saw the average Capital Value increase 57% to $922,800. The average residential Land Value is up 63%, now $568,700, Council said.

On average, Capital Values for commercial and industrial property have increased by 40% across the city.

“Hamilton’s substantial growth in the past few years has been due to several factors including low interest rates and increases in both first home buyer and investor activity,” said Council’s Financial Support Services Manager, Matthew Bell.

“Demand for housing has continued to drive infill development such as units and townhouses, increasing values in some of Hamilton’s more established suburbs. Large blocks of land in the future development areas of Peacocke and Rotokauri have seen the larger increases driven by the demand for land across the city. Hamilton’s industrial market has also seen high growth following nationwide trends.”

Independent registered valuation company, Opteon, carried out Hamilton’s revaluation, with the process audited and approved by the Office of the Valuer-General.

Mr Bell said the revaluation would not necessarily mean higher rates for residents.

“There is a common misconception that a large valuation increase automatically means an equivalent rate increase. It’s not necessarily the case,” he said.

“What determines a rates increase is if a property’s Capital Value increased more than the average for the property type.

“Council does not collect more rates as a result of a revaluation, rather budgets are set through its Long-Term and Annual plans, which determines the total rates needed to provide services to the city.”

Council is proposing a 4.9% average rates increase from 1 July 2022 as set out in the 2021-31 Long-Term Plan. This will be confirmed in June, he said.

A residential property with a Capital Value increase of about 57% should see a rates increase of about 4.9%, while a commercial or industrial property with a Capital Value increase of about 40% should see a rates increase of about 4.9%.

“If a property changed by more than the average, a rate increase will be more than 4.9%. Less than the average, it may be less than 4.9% or could decrease.”

“Not all rates are based on property value. Some rates are a fixed amount and are not affected by the revaluation.

“Council staff are now working through what next year’s rates look like for individual properties and will make this information available over the coming weeks,” said Mr Bell.

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