Large increases in latest Hamilton property valuations

The latest figures show that the CV in all but two of Hamilton's suburbs have increased by atleast 20% on 2012 (24/11/2015).

Property values have soared in the past three years prompting a property valuer to warn against a market correction.
QV valuer Richard Allen delivered the latest residetial property ratings valuations to Hamilton City Council and said while the market was buoyant, the property clock was ticking and a dip was expected to be on the way.
 
"There will be a correction and when that correction happens, who knows, but there will be one," said Allen.
 
It wasn't just a stab in the dark. This year has seen a run in sale from June to September and was reminiscient of 2007.
"It's the same as 2007 . . . it was probably the peak of it but things can happen in no time and like the global financial crisis, they can stop pretty quickly too."
 
Some factors in the 2015 market increase were the increasing population, cheap loans, loan restriction in Auckland pricing people out of that market and driving them south.
 
There would be "quite some tail" in the market and while interest had slowed, prices were expected to maintain an upward trend.
"My experience in Hamilton is, you know, seven or eight year cycles where things grow, grow, grow and then stop quite quickly as well."
 
Ratings valuations must be assessed every three years. The last time they were done was in 2012.
 
Capital values in Melville went from $263,699 to $341,736, a change of 28.2 per cent, and one of the highest in the city.
 
By comparison, the capital value change between 2009 and 2012 was minus one per cent.
 
Melville was traditionally a low value area but had become an attractive market.
 
Glenview increased 31.4 per cent to $397,542 and Pukete increased 27.8 per cent to $441,870.
 
Pukete had new subdivisions with previously bare land now developed.
 
"In terms of the increases, Melville and some of those areas in the south west will be starting from a lower base and the values we produced are based on sales," said Allen.
 
Frankton, with a 18.6 per cent increase to $311,820 lagged behind as did the central city with a 2.2 per cent increase to $390,354.
On average, capital values in Hamilton increased between 22 per cent and 32 per cent. Land values, which were a portion of the capital value, showed an increase of between 20 and 40 per cent.
 
The QV assessment trailed the property market but the valuations were a snapshot in time - fixed at September 1 values for the next three years.
 
Council's chief financial officer Paul Condersaid they will be used to determine future rates in the city.
"It is key input for allocating the rates pool and does not change the amount of rates the council will actually collect," said Conder.
"It does affect the share that individual properties actually have. If valuations have gone up faster than the city average and that will increase the share the property actually has.
 
"If the increase is smaller than the city average, those properties will have a smaller rate to pay in the future."
 
Council chief executive Richard Briggs said staff would have to crunch the numbers to spread the ratings load across the city.
 
"It won't be until the new financial year when our team will assess the impact of that valuation of rates," said Briggs.
"This doesn't mean the rates go up by those increase. Based on what the market says your house is worth, the valuations have changed.
 
"The rates are separate to that."
 
Revaluation notices will be issue on November 25 and ratepayers have until January 8 to appeal.
 
Average CV by suburb:

From Stuff.co.nz

Hamilton CV